Dear Seniors,

Could you please guide me on the meaning of "Punishment - Stoppage Of 03 Increment with cumulative effect"?

In the above statement, what is the meaning of "With Cumulative Effect"?

Thanks in advance.

From India, Pune

Hello Prashant B Ingawale,

Can you mention the context of this statement? The word "Cumulative" doesn't really fit in this general context of stoppage of increments, since 'cumulative' means 'together/accumulative/collective/accruing/increasing, etc.'. Unless there were some increments that were already announced/deserved but not paid/implemented in the situation you have at hand. Usually, the phrases used/associated in such a context are: 'retrospective effect' or 'immediate effect' or 'w.e.f........(date)'.

Please do wait for others to respond.

Regards,
TS

From India, Hyderabad

Dear friend Tajsateesh,

The phrase "with cumulative effect" in the context of awarding punishment is generally and very widely used in Government and Public Sector Undertakings. It has a very specific meaning. But before elaborating on it, let us wait for the additional information sought, viz. "Can you mention the context of this statement?"

Warm regards.

From India, Delhi

kknair
211

Dear Prashant,

The punishment of stoppage of three increments with cumulative effect means that he will not draw the next annual increment for a period of three years and at the end of three years, he will draw the next increment. Let us assume a case that the punished employee was in the grade of Rs. 5000-100-6000 and was drawing a basic pay of Rs. 5500, and the increment is due on 15th September every year. As the punishment of stoppage of increment with cumulative effect is imposed, his basic pay will remain static at Rs. 5500 on 15th September 2011, 15th September 2012, 15th September 2013, and up to 14th September 2014. On 15th September 2014, he will draw the next increment, and his basic pay would go up to Rs. 5600. Had it been without cumulative effect, his pay would be fixed at the stage where he would have been had he not been punished, i.e., he would be straight drawing Rs. 5900 on 15th September 2014 without going through the stages of Rs. 5600 to Rs. 5800. Thus, where the punishment is the stoppage of increments with a cumulative effect, the loss is enduring or lifelong, whereas where the punishment of stoppage of increments without cumulative effect, the loss is short-term and does not make a difference in the long run.

Hope this clarifies.

KK

From India, Bhopal

Excellent explanation kknair. That’s what makes CiteHR one of the Best HR Forums. Rgds, TS
From India, Hyderabad

Dear Prashant,

I think I have already replied to your question at the following link on Lawyers Club India: [Punishment - stoppage of 03 increment with cumulative effect - Labour & Service Law Experts Queries - Law, Lawyers, Advocates, Law Firms, Legal Help, Legal Experts, Judgements, Law Help, Indian Lawyers](http://www.lawyersclubindia.com/experts/Punishment-stoppage-of-03-incerement-with-cumulative-effect--226116.asp).

If you have any doubts about that, please specify for further clarification. However, Mr. K.K. Nair's reply should also satisfy you fully, as I am in total agreement with his response.


From India, Delhi

Dear tajsateesh, Prashant, and other friends,

I fully endorse the opinion given by kknair. He has clearly brought out the meaning of the phrase "with cumulative effect."

In the case of 'with cumulative effect,' the increments for those years are lost forever; whereas if it is "without cumulative effect," then the employee is placed at the same increment level - (which he would have earned had he not been awarded the punishment) - at the end/expiry of the punishment period. Hope the example and the explanations given herein clear any doubt regarding "with or without cumulative effect" as used while awarding punishment.

I expect more of such queries and explanations from members so that it helps the HR fraternity and especially CiteHR members in enriching their knowledge and expertise.

Warm regards.


From India, Delhi

Dear All,

KKNair, sir has correctly distinguished both terms. Initially, in today's industry, a lot of old personnel terms are vanishing; hence, from time to time, referencing these types of tricky issues will help the members to add to their knowledge.

Thanks, Mr. Nair!

Regards,

Dinesh Shitole, Pune

From India, Pune

Please clarify for me what the next promotion that can be given to an employee during a punishment period is.

After an inquiry into a theft case, management arbitrarily imposed punishment on an employee by stopping one increment with a cumulative effect. The letter of punishment was issued on 10 Jan 2012, the annual increment date was May 2012, and the employee was eligible and qualified for promotion in March 2013. Currently, management is stating that promotion will be considered after May 2013. With the cumulative effect, he lost his increments for a lifetime. Not receiving the promotion is seen as another form of punishment. Please provide suggestions on this issue.

Badal Moharana
9439020587
badal.bms@gmail.com

From India, Bangalore

Dear Badal,

I think yours is a good employer-friendly company. Once the punishment period is over, the employee is eligible for promotion and increment. He cannot be denied future promotions or increments. Of course, do bear in mind that since the punishment is with cumulative effect; it means he will not get the increment that was due during the punishment period but will receive the next increment after the punishment period is over - i.e., on the Date of the Next Increment due.

Warm regards.

From India, Delhi

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