Dhritman (SSA) 10 May 2013

Rollback of hike upon resignation

Hi,

Here is a scenario for which I have question(s) :

Lets say the employee's monthly salary is 200/- and effective 1st April he gets a hike of 50/- per month. Now his salary is 250/- per month. The company asks for serving 1 month as "notice period" upon submitting resignation. The employee resigns on 31st July and is expected to serve the entire month of August as notice period.

Now if the company HR says - Employee has resigned hence hike shall be rolled back. 50/- for each month from Apr - Aug totals to 250/-. Hence the salary of August shall not be paid.

Is this in any way illegal ? Can such HR policies be challenged legally in any way ?

Thanks.

Reply Follow

1 Replies

Kumar Doab (FIN) 10 May 2013

Generically the increase in wages becomes part of the wages, hence guaranteed cash and can not be rolled back.

Earned wages/salary for any month can not be blocked.

HR is not employer. Employee may demand written communication from HR and certified copy of the HR policy implemented by HR.

Employee may submit a gentle representation to good offices of appointing authority, MD, Chairman, and Company Secretary and cite reference of increment letter, salary slip of months from April onwards and request the good offices to intervene and provide relief.

Valuable advice of learned experts/members is sought.