Last year, One of my friends has been transferred from company A to Company B because of IT service outsourcing along with the employees. During the transfer compay B promised X% hike. However they split the hike in 2 parts and first part was included in the salary as monthly payout and 2nd part was included as retention bonus as annual payout. The retention bonus was mentioned in CTC(Cost To Company) under annual benefits.
After one year, company B has issued a new revision letter and they removed retention bonus component from CTC( So CTC has reduced by Retention bonus amount) and has issued a seperate letter stating that as special case you will get retention bonus only for this year and not subsequent years. The company management is telling that you were not supposed to get retention bonus this year, however as a gesture of good we are continuing only this year. However, since it was part of CTC my friend is thinking that company is withholding his money and won't give it subsequent year.
My question is if something is mentioned in CTC, can company remove the components from CTC and reduce it?
