I worked at ONGC for 8 years and resigned with a month's notice, instead of the standard 3 months. Now, they're asking me to pay a penalty of 5 months' basic salary and dearness allowance. I've heard that such a penalty isn't common practice, even in priv

0
0

I worked at ONGC for 8 years and resigned with a month’s notice, instead of the standard 3 months. Now, they’re asking me to pay a penalty of 5 months’ basic salary and dearness allowance. I’ve heard that such a penalty isn’t common practice, even in private companies.

My question is:

1. Is it legally valid for ONGC to impose this penalty? They’re citing an office order from 2012, signed by a General Manager (HR), mentioning changes to the service rules.
2. However, there’s a newer version of the service rules published in 2014, which doesn’t mention this 3-month penalty. The HR department claims they forgot to update the document. Shouldn’t the latest version of the rules be considered valid in this situation?

Labour & Service
Share
  • You must to post comments
Filter
Sort by: Most Votes
0
0

Under Indian law, such a clause requiring you to repay a performance bonus upon leaving before a certain date is likely to be unenforceable as it is considered a penalty clause. You can challenge this provision and argue that the bonus was earned and should not be clawed back.

  • You must to post comments
Showing 1 result
Your Answer

Please first to submit.