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IT service provider HCL Technologies clarified on reports of the company revoking a policy that suggested that the bonus paid to the employees will be recovered when they exit the firm in the middle of the year. 

In a statement to Livemint, HCL Tech's spokesperson highlighted that for more than a decade, all junior management employees of the company 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," the spokesperson said.

The clarification further added that going forward, the company will continue with the advance variable payout for our employees and have also waived off the recoveries w.e.f December 22, 2021.

This comes after a report suggested employees had raised complaints to revoke the policy by the IT firm, and also recover the bonus deducted. The report stated that HCL Tech had revoked a policy that stated that bonus paid to the employees who are exiting the company between September 2021 and March 2022, will be recovered when they quit.

Meanwhile, the IT firm is set to announce its third quarter (Q3FY22) earnings on Friday. Shares of HCL Tech were trading over 3% lower at 1,293 apiece on the BSE ahead of its results.

For the quarter ended September 2021 (Q2), the IT major reported 4% growth in consolidated net profit at 3,259 crore. Its board had also declared an interim dividend of 10 per equity share for the financial year 2021-22.

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