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Employee_at_a_loss (S)     31 May 2013

Relocation expenses

Hello,

I joined an organization about five months back. They paid me a relocation allowance/bonus equivalent to one month's salary, as well as organized my relocation, for which they paid (not reimbursed).The contract I signed was that if I left before one year, I would pay them back the relocation expenses, pro rata, for every month not served. 

I have no problem paying back the cash part, but for the expenses part, they're demanding an arbitrarily large sum (several lakhs). I admit that they did put me up at a fairly good place for three weeks, but they gave me absolutely no idea of the expenses involved. Now they say that if I do not pay them back, then they will withold my last paycheck (this does not cover what they claim I owe them), as well as refuse to issue me my relieving letter.

Could someone suggest what reasonable legal recourses do I have?

 



 3 Replies

Advocate Rohit (Advocate)     31 May 2013

you write to them asking to give you break up of the expenses alongwith the bills. so that you could come to know what expenses they had incurred in actual. further, you to show your employment contract in order to ascertain what is your actual liability.

 

you may call on the below number for legal assistance.

 

Regards,

Advocate Rohit Dalmia

9324538481

Mumbai

Kumar Doab (FIN)     31 May 2013

As rightly suggested by Mr. Rohit, the contract of appointment, with details of any document/agreement signed by you should be studied.

Employee_at_a_loss (S)     10 June 2013

Okay, my employers are now creating more trouble for me. The said relocation expenses, amounting to approximately Rs. 270,000, have been added to my income in my salary slips and form 16 and presented as taxable income. 

As far as my understanding of income tax laws goes, under section 10(14) of the income tax act, any amount paid for  purposes of relocation, transfer and travel is not taxable in the hands of the employee, to the extent of the actual expenses incurred. As I was never paid this amount, and this amount was (supposedly) paid to various third parties, I do not think I should be liable to pay tax on that amount. 

I hope that the employer will have the sense to amend this, but what course of action do I have in case the employer refuses?


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