HCL abolishes the policy of recovering bonus from ex-employees
India’s fourth-largest IT services company HCL Technologies has removed the controversial clause of recovery of Employees Performance Bonus or EPB from its HR policy, after some of its former employees threatened to go to court.
According to this policy, the company had stated that it will recover the EPB from those who quit the firm. The former HCL Tech employees who had already repaid the bonus, are considering to approach the labour court against the tech major and will be supported by the employee union.
Employees, who were exiting the firm, noticed a new clause that stated that bonus paid to the employees who are exiting the company between September 2021 and March 2022, will be recovered in full.
Harpreet Saluja, President, Nascent Information Technology Employees Senate (NITES), a union for IT employees, said, “Payment of bonus is the statutory liability on the employer and receipt of bonus amount is the legal right of the employee and the amount to be paid, to whom to be paid and by when to be paid has been well framed in the Payment of Bonus Act. The employer cannot unethically amend the bonus scheme depriving bonus to its employees. The employees who resigned from the service also are entitled to a bonus for their tenure.”
Saluja said that while the company has now revoked the policy, it is only for the Engagement Performance Bonus, a variable component that is paid to the employees on a monthly basis. Advance Monthly Performance Bonus, which will be recovered from employees, has not been revoked.
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