He got joining bonus but was laid-off withing months. Now HR is threatning him to return the money

Several employees face confusion and stress when companies demand repayment of joining bonuses, especially after layoffs. A recent case shared on Reddit illustrates this dilemma, where an employee, laid off just months after joining, received a notice from HR asking him to return his joining bonus and withholding his relieving letters.

The individual, who joined a company in March, was offered a joining bonus under the condition of completing one year of service. However, by August, the company laid off around 50% of its workforce, including him. While he received compensation for 45 days, he later requested an early release to join a new employer.

The situation escalated when, in October—after the 45-day compensation period—the company’s HR department emailed him demanding repayment of the joining bonus and withholding his relieving letters.


Employee Seeks Advice

The employee, known as OP on Reddit, sought guidance from the online community, writing: "Need suggestions how to tackle this? Also, would I need relieving letters somewhere else because none of the company I switched asked for it."

Several Reddit users and professionals weighed in. One user advised: "You’re on the safe side. Since you were laid off and didn’t resign, that joining bonus recovery clause doesn’t legally apply to you. Those are meant for people who quit early, not those let go by the company." Another added: "As long as it is clear on papers that you were laid off by the company and not resigned from your end, you don’t owe them back anything. You can just state this in your response email."

The employee clarified that he had not initiated any resignation and that the company had themselves started the termination process on their HR platform, Darwinbox. "Yes, I made sure there isn’t a communication from my side that I’m resigning. They themselves initiated the process from Darwinbox," he wrote.


Background Verification Concerns

Reddit users also highlighted concerns about background verification (BGV) and relieving letters. One user explained: "Relieving letters are verified by larger MNCs and Indian conglomerates. Better to have the letter rather than having an issue later." Another advised: "Even if BGV still asks for relieving letter of the previous firm, then you can also share the same email communication. If the new firm still makes a hue and cry, then that firm is not worth joining."