Legal Question in Employment Law in India

Hi ,

I had been sent to onsite in the month of Jan'13 and was given a salary advance of $5000 (@53.8 INR) at that time. The money deduction never took place over there. I raised cases in the company HR tool as well in US for this but no actions were taken.

When back to India, I again raised a case that I am willing to payback the salary advance in dollar or in equivalent INR but no followups were there from the Company HR/Payroll/Accounts side.

Now they have started deducting the advance from my salary from Feb onwards @ 62.4 INR (Jan'14 rate, they mentioned this in email) and informed me about this on Feb 27 only. When I said I owe the company $5000 or INR @53.8, they said why am I taking Historical rate. My question is they made deductions from my salary in the month of Feb and Mar'14 at Jan'14 rate. Isn't this historical conversion? I just want to know, is there any specific law that deals with this deputation advance? What is my current legal status? Am I really bound to pay them @62.4 INR? Please advise and if there is any specific section that deals with this, please let me know.

Thanks.


Asked on 4/03/14, 11:20 pm

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

04.04.2014

Dear Sir / Madam,

Recovery of advance salary given is as per Company policy. When you repeatedly informed the Company to deduct and recover the advance salary, the HR and Accounts ought to have effected the deduction and recovery then and there. Since they have failed to then deduct and recover the salary advance whilst you were on site posting, you simply ought to have procured and paid off $ 5,000/- (in $ Currency) to the Company, to avoid any confusion in the applicable exchange rate. Should it not be possible to repay $ 5,000, then request the Company that since it was their fault, they should effect deduction and recovery at the then exchange rate of Rs. 53.80 ps Lastly, should the Company disagree, tell them point blank that the actual prevailing exchange rate as on the date of each deduction in February, 2014 and March, 2014 will apply, and not a fixed historical rate of Rs. 62.40 ps.

Regards,

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Answered on 4/04/14, 6:23 am


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