Relocation amount refund in a firm
Akhil
(Querist) 12 March 2013
This query is : Resolved
Hi..
I joined in a company which is far away from my home town.. it was given in offer letter that they will give a relocation amount of 15000 INR after 3 months and if I resign within 1 year they will recover it from my final settlement.. but I'm not liking this job.. I'm planning to quit the job.. if i quit this job will it create a legal problem? will i have to pay this amount from my pocket? please reply
prabhakar singh
(Expert) 12 March 2013
Yes!When you have agreed you should and is legally bound to abide by the terms of the agreement.
Advocate Sastry
(Expert) 12 March 2013
When you have acceted the offer letter, received Rs. 15,000 and wish to resign before 1 year, You are bound to refund the money.. If you resign after One year they may waive..
Pradeep MK
(Expert) 12 March 2013
There are different judicial decision on this issue.
However in your case since you have agreed to pay, the present Employer will deduct the amount as per the agreed terms. If you do not pay they may not accept your resignation and relive you from the assignment. Your new employer may not allow you to join you without producing relieving letter from your present employer.
Considering the cost and time involved it is better to pay or bargain with the present employer for discount or prospective employer for taking the liability.
Akhil
(Querist) 12 March 2013
it is given that if the employee leaves the organization within 12 months from the date of joining the organization, the entire amount will be recovered from the full and final settlement.
In the event that the employee is absconding from work, the relocation allowance will be withheld and will not be processed until confirmation is received from employee's supervisor that the employee has resumed work. If the employee does not resume work, he shall be deemed to have waived his right to have waived his right to relocation allowance..
if i resign and go on some random date.. they will recover that money from my salary right? they can't ask me to pay from my pocket right?
Devajyoti Barman
(Expert) 13 March 2013
Whatever you do, you would be bound by its terms and condition.
SO if you quit within one year then you have to pay that amount.
