Respected Members
I am new joinee to this forum and came here to seek your help & guidance on following issue i am facing with my current employee.
I am working with a midsize IT company in Mumbai with 7 years of IT experience, i have completed my 1st appraisal cycle. I have received my revised salary letter along with following clause.
"In the event that an employee leaves the organization before completion of 6 months from the date of letter, the appraisal shall stand cancelled and the amount appraised shall be reversed during full and final settlement."
The HR has defended this clause by saying that its the way company is safeguarding the risk of high attrition which is observed after the appraisals are rolled out.
Though i believe that employers have all the rights to safeguard its interest, i have concerns over legality of such clause which is introduced all of the sudden
I would appreciate if the experienced & knowledgeable people in this forum will help me validate this clause with Industry best practices & suggest if i should accept this clause.
P.S. kindly excuse me if this topic was discussed previously
Best Regards
Abhishek
From India, Mumbai
19I am new joinee to this forum and came here to seek your help & guidance on following issue i am facing with my current employee.
I am working with a midsize IT company in Mumbai with 7 years of IT experience, i have completed my 1st appraisal cycle. I have received my revised salary letter along with following clause.
"In the event that an employee leaves the organization before completion of 6 months from the date of letter, the appraisal shall stand cancelled and the amount appraised shall be reversed during full and final settlement."
The HR has defended this clause by saying that its the way company is safeguarding the risk of high attrition which is observed after the appraisals are rolled out.
Though i believe that employers have all the rights to safeguard its interest, i have concerns over legality of such clause which is introduced all of the sudden
I would appreciate if the experienced & knowledgeable people in this forum will help me validate this clause with Industry best practices & suggest if i should accept this clause.
P.S. kindly excuse me if this topic was discussed previously
Best Regards
Abhishek
From India, Mumbai
Hello Abhishek,
Locking period concept is usually used for Fresher joinings, Training & any special purposes--NOT a regular Appraisal.
What the company seems to fail to recognize is the fact that the Appraisal is a sort of Reward being given for performance in the PAST 1 year--NOT for the future performance.
Legally, suggest wait for other legal members to respond--but prima facie, I think IRRESPECTIVE of the legal aspect [my view being that this is illegal], what you need to think about is the PRACTICALITY of this adhering to this feature in the Appraisal process vis-a-vis YOUR career goals. Realistically, presuming this is illegal, what do you propose doing--going to court? And spend a good part of your time, attention & of course money towards this issue?
Hope you got the point--at the End-of-Day, it's your call for the simple reason that it's your career.
All the Best.
Rgds,
TS
From India, Hyderabad
Locking period concept is usually used for Fresher joinings, Training & any special purposes--NOT a regular Appraisal.
What the company seems to fail to recognize is the fact that the Appraisal is a sort of Reward being given for performance in the PAST 1 year--NOT for the future performance.
Legally, suggest wait for other legal members to respond--but prima facie, I think IRRESPECTIVE of the legal aspect [my view being that this is illegal], what you need to think about is the PRACTICALITY of this adhering to this feature in the Appraisal process vis-a-vis YOUR career goals. Realistically, presuming this is illegal, what do you propose doing--going to court? And spend a good part of your time, attention & of course money towards this issue?
Hope you got the point--at the End-of-Day, it's your call for the simple reason that it's your career.
All the Best.
Rgds,
TS
From India, Hyderabad
HI abhishek ,
Though the terms and condition given in the contract after appraisal are not as per law, but, As an HR I think that your company has taken the right steps to prevent the current attrition rate and the undue advantage an employee takes of the appraisal.
From India, Pune
Though the terms and condition given in the contract after appraisal are not as per law, but, As an HR I think that your company has taken the right steps to prevent the current attrition rate and the undue advantage an employee takes of the appraisal.
From India, Pune
Hi Abhishek,
Being an employee of different department it is quite visible that your concern is to loose good opportunity which anybody would look forward to after appraisals.
But looking it from company's point of view - contrary to employees concern, while appraisals take place it is not only last year's performance that are considered but also business visibility of the individual's role in coming year. What would be individual's contribution, how would it benefit the organization in meeting its vision & mission in coming year, the ROI & cost effectiveness are key components considered. Performance of previous year is mere factor to judge the eligibility of the employee but in reality company is interested in paying incremented salary compared to employees worth (the estimated output which is expected by company in coming year). That is why with increments come in new KRA's and KPI's.
Coming to your query (irrespective of legality) company can ask them to stay for 6 months from appraisal but cannot reverse the appraisals at any cost. The HR of the company must understand that joining & leaving are part n parcel of any organization. There are various other ways for reducing attrition. This clause will only increase disharmony among employees.
Regards,
Hiral
From India, Ahmedabad
Being an employee of different department it is quite visible that your concern is to loose good opportunity which anybody would look forward to after appraisals.
But looking it from company's point of view - contrary to employees concern, while appraisals take place it is not only last year's performance that are considered but also business visibility of the individual's role in coming year. What would be individual's contribution, how would it benefit the organization in meeting its vision & mission in coming year, the ROI & cost effectiveness are key components considered. Performance of previous year is mere factor to judge the eligibility of the employee but in reality company is interested in paying incremented salary compared to employees worth (the estimated output which is expected by company in coming year). That is why with increments come in new KRA's and KPI's.
Coming to your query (irrespective of legality) company can ask them to stay for 6 months from appraisal but cannot reverse the appraisals at any cost. The HR of the company must understand that joining & leaving are part n parcel of any organization. There are various other ways for reducing attrition. This clause will only increase disharmony among employees.
Regards,
Hiral
From India, Ahmedabad
Thanks all for your wonderful comments. It really enlightened me.
Though i am an employee who will personally suffer with this clause, i am more concerned about the unrest in my team due to such policies.
People leaving after appraisal is part n parcel of the corporate life as is exercised by all of us including our HR friends ;-)
As i previously mentioned the company has all the rights to take steps to prevent attrition. But i am having tough time explaining the HR that the clause mentioned will do more harm to organization than to the employees.
1. "amount appraised shall be reversed during full and final settlement" , Appraised amount would be in few thousands applicable to upto 6 months, not a great amount company can recover but it sends immense negative vibes to employees plus headache for finance team in terms of taxation
2. "the appraisal shall stand cancelled" e.g. A person who has moved from role of Software Engineer to Sr. Software Engineer will be demoted and his relieving letter will mention "Software Engineer" , How many of us will buy this.
I believe that motivation, growth plan and respect are more important factors than monetary benefits for any employee. And thats the key to fight attrition
Employee Is Like Sand, The More You Try To Grip with such policies, The More It Falls Away
Sateesh, Abhishek 555, Hiral, Thanks a ton for your inputs, Thanks for clarifying my doubts and correcting me
Cheers
Abhishek
From India, Mumbai
Though i am an employee who will personally suffer with this clause, i am more concerned about the unrest in my team due to such policies.
People leaving after appraisal is part n parcel of the corporate life as is exercised by all of us including our HR friends ;-)
As i previously mentioned the company has all the rights to take steps to prevent attrition. But i am having tough time explaining the HR that the clause mentioned will do more harm to organization than to the employees.
1. "amount appraised shall be reversed during full and final settlement" , Appraised amount would be in few thousands applicable to upto 6 months, not a great amount company can recover but it sends immense negative vibes to employees plus headache for finance team in terms of taxation
2. "the appraisal shall stand cancelled" e.g. A person who has moved from role of Software Engineer to Sr. Software Engineer will be demoted and his relieving letter will mention "Software Engineer" , How many of us will buy this.
I believe that motivation, growth plan and respect are more important factors than monetary benefits for any employee. And thats the key to fight attrition
Employee Is Like Sand, The More You Try To Grip with such policies, The More It Falls Away
Sateesh, Abhishek 555, Hiral, Thanks a ton for your inputs, Thanks for clarifying my doubts and correcting me
Cheers
Abhishek
From India, Mumbai
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