Hi,

One of our employees has submitted his resignation just two days after receiving the appraisal. The appraisal is effective from September 2020. He tendered his resignation on the 22nd of September 2020 and signed his acceptance of the appraisal letter on the 18th of September 2020. Now, he is requesting the increased salary as he has already accepted the offer. Please advise on any potential legal repercussions in this situation.

From India, New Delhi
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Dear Spatyal,

When one reads the post, on the surface, it can be concluded that the performance appraisal and separation from the company are two independent things. The former is for measuring employee performance in the past performance cycle, whereas the latter is his basic choice on how long one will serve in a particular company. If the employee finds his interests lie outside the company, then where is the problem? As long as the employee serves the notice period as per the notice period, everything is fine.

Your question is on the legal repercussions of separation after the performance appraisal. However, it should be noted that the performance appraisal and resignation are internal matters of the company. Labour laws do not deal with the internal matters of any company.

Nevertheless, if one reads between the lines of your post, one feels a grouse that you might have on the resignation of the employee after the salary hike. Is this the real reason for your post?

Thanks,
Dinesh Divekar

From India, Bangalore
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I fully endorse the observations of Mr. Dinesh. Performance appraisal is an objective and periodical exercise of the employer to assess the past performance of the employee to grant him a pay hike. On the other hand, resignation is the subjective decision of the employee to quit for his betterment. What is important is whether his resignation fulfills the predetermined exit clause of the contract of employment. When to resign subject to the exit clause is an exclusive choice of the employee concerned. If he resigns soon after getting a hike, it is not going to adversely affect the present employer but can enable him to have an edge in the salary negotiation of his future job if it is one of the reasons for his resignation. There are no questions of legality or ethics involved in such an action.

If the present employer prefers his retention, he can offer him a higher position with a higher compensation package. In fact, it will create legal and ethical issues only if the employer refuses to effect the pay hike agreed in the appraisal in view of the resignation following the appraisal.

From India, Salem
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Mr. Satypal,

Whether there are repercussions or not depends on the terms and conditions of appraisal and/or policies of the employer. If you want a specific reply, you can share your policies/terms of appraisal. The language used therein will have to be interpreted.

From India, Faridabad
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rkn61
699

There won't be any legal repercussions on company management in awarding an increment to your employee, even if he submits his resignation. Performance appraisal is based on his past service of one year or six months (as per your company's policy), and therefore, he is entitled to receive the incremental salary hike.
From India, Aizawl
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Sir I have a concern I am working in teleperfomance MNC recently the process is rampdown and due to head count reduction they ask me for leave because they don’t have that much requirement and they ready to give me 1 month paid salary but my question is that I have worked with company more than 15 months my gratuity amount some where 9000rs and company ask me to leave because they don’t have job any more but I am not leaving the company from my wish I am still ready to work so in that case can I get my gratuity, if yes so how should I claim this and what is section and point refer to explain this to my company, I request you please answer my question I am waiting for your reply.
Thank you

From India, Indore
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Certainly! Here is the corrected version of the text with proper spelling, grammar, punctuation, and paragraph formatting:

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Sir, rules are framed to receive and consolidate the reports. They should always be flexible. Consider what the entire world did in coordination with the lockdown situation. Evaluate his performance and add benefits according to his achieved records. Any dates should be amendable in cooperation with your company employees, always approaching with a receptive mind and ensuring comfort to achieve your larger goals.

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I hope this helps! Let me know if you need any further assistance.

From India, Nellore
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