Thursday, July 31, 2025

HCL Tech revokes its policy to recover bonus from resigning employees

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According to media reports, HCL Technologies (HCL), a leading global technology company, has revoked one controversial clause from its HR policy to recover Employee Performance Bonus (EPB) from employees who resign from jobs.

“However, the company has not revoked another contentious clause that pertains to the recovery of the advance monthly employee performance bonus or APMB,” Harpreet Saluja, President of Nascent Information Technology Employees Senate said in a statement.

While EPB is applicable across all bands of employees, AMPB is a project-specific bonus that is not paid to every employee, Saluja explained.

Also Read: HCL Technologies asks resigning employees to return performance bonus

This comes after, some of the employees approached to IT employees union, Nascent Information Technology Employees Senate (NITES), after that the IT Union has filed an official complaint against HCL Technologies, alleging HCL Technology has instituted a policy to claw back bonuses from resigning employees.

Commenting on this the company said, “HCL Technologies is an employee-friendly organization with global best practices.  Amongst its several unique initiatives,  HCL Technologies differentiated itself in the India market with a unique compensation structure for its junior employees’ (typically under 10 years of experience) with an aim to maximize their take-home pay package. For more than a decade, all junior management employees were paid the variable pay in advance, as a supplement to their fixed salary,”

“The employment contract/policy very clearly stated the terms of payment. During the pandemic, beginning last year, the organization decided to waive off all the performance conditions attached to this component and pay 100% in advance to reward the employees. This advance variable payout (much like standard sign-on bonus terms and conditions) would be deducted if any employee left ahead of the completion of performance review cycle, in the final settlement.” It said

“Going forward, we will continue with the advance variable payout for our employees and have also waived off the recoveries w.e.f December 22, 2021. Our endeavor has always been to engage, enable and empower as we continue to work in a fair and equitable manner towards all.” the company further added.

Currently, the IT sector is in a talent war, companies are facing high attrition rates.

HCL will share its third-quarter results for the financial year 2022 on Friday, January 14, 2022.

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