Our company recently changed the terms of employment with this years appraisal. They have changed the notice period from 1 month ( as mentioned in the original appointment letter) to 2 months. And also, they have mentioned that if an employee leaves within 12 months of this appraisal cycle, he will have to pay back the changed compensation amount during the final settlement.

Can someone please advice, if this is leagal? Can an employer change the terms of employment like this?

yes an employer can change the service conditions of an employee.

As per Industrial Disputes Act an emloyer can change the service conditions of an employee but the employer cannot effect any change in the conditions of service applicable to any workman without giving 21 days notice.

Such 21 day notice is required if there is going to be change in wages, wage period, PF contribution, allowances, hours of work and rest intervals, shift timings, new rules of discipline, increase or decrease in number of persons employed in any department or shift.

Section 9A provides of ID Act deals with the topic.

Thanks

Kamal Prasoon