Hi Priyanka,
There will be no legal hassle (under labour laws) if you declare increments in April and payout in October with the knowledge of employees. Labour laws do not stipulate or regulate increments that is solely an employer's prerogative.
It would be advisable to communicate clearly and succintly with employees the change in appraisal period from 6 months to, lately one year and reasons thereof. It would initially be a matter of concern to them, obviously. A bit of personal touch by calling for a town-hall meet to address this issue will be helpful. Alternately, even if respective heads of departments propagate a common message to their respective staff on the change in appraisal period as advised by HR, that'll be good.
For the moment, employees will be happy to know the fact that their six monthly appraisal tenure will be counted and be paid off, retrograde w.e.f 1st April 2009. However, why will this be paid in Oct.'09 will be questioned and should be addressed.
Normally, to make such policy changes, an intimation in advance must be disseminately uniformly to employees by HR, to their reasonable satisfaction; not abruptly or piece-meal.
Be careful on wording the increment letters (any thing that you give in writing duly signed by the management holds legal sanctity). Deferment of increment payable in April 2009 must be accompanied with good reasons, if given in writing to dispel any message of malafide intentions of the management.
It may be safe to actually pin a 'policy supersession/change on Performance Appraisal" on the main (conspicuous) bullettin board for employees to read followed by a communication address as of now and then give them the increment letter later in Sept'09/Oct'09. That should be able to address the matter and also dispel fears of job-cuts or attrition which is likely given the economy meltdown and its fallouts.
Rahul Kumar
__________________________________________________ _______________________
Hi,
In our organization, there was a system of 6 monthly appraisals. Now we want to move towards yearly appraisals which will happen in September every year. This April since we do not want eligible people to miss out on increments, we will be appraising them and letter of increment will be given to them but actual payout will happen only in September 09 (it will be mentioned in the letter).
My concern is, will there be any legal hassle (under labour laws) if we declare increments in April and payout in October with the knowledge of employees?
Regards,
Priyanka Upasani
9850750998
From India, New Delhi
11There will be no legal hassle (under labour laws) if you declare increments in April and payout in October with the knowledge of employees. Labour laws do not stipulate or regulate increments that is solely an employer's prerogative.
It would be advisable to communicate clearly and succintly with employees the change in appraisal period from 6 months to, lately one year and reasons thereof. It would initially be a matter of concern to them, obviously. A bit of personal touch by calling for a town-hall meet to address this issue will be helpful. Alternately, even if respective heads of departments propagate a common message to their respective staff on the change in appraisal period as advised by HR, that'll be good.
For the moment, employees will be happy to know the fact that their six monthly appraisal tenure will be counted and be paid off, retrograde w.e.f 1st April 2009. However, why will this be paid in Oct.'09 will be questioned and should be addressed.
Normally, to make such policy changes, an intimation in advance must be disseminately uniformly to employees by HR, to their reasonable satisfaction; not abruptly or piece-meal.
Be careful on wording the increment letters (any thing that you give in writing duly signed by the management holds legal sanctity). Deferment of increment payable in April 2009 must be accompanied with good reasons, if given in writing to dispel any message of malafide intentions of the management.
It may be safe to actually pin a 'policy supersession/change on Performance Appraisal" on the main (conspicuous) bullettin board for employees to read followed by a communication address as of now and then give them the increment letter later in Sept'09/Oct'09. That should be able to address the matter and also dispel fears of job-cuts or attrition which is likely given the economy meltdown and its fallouts.
Rahul Kumar
__________________________________________________ _______________________
Hi,
In our organization, there was a system of 6 monthly appraisals. Now we want to move towards yearly appraisals which will happen in September every year. This April since we do not want eligible people to miss out on increments, we will be appraising them and letter of increment will be given to them but actual payout will happen only in September 09 (it will be mentioned in the letter).
My concern is, will there be any legal hassle (under labour laws) if we declare increments in April and payout in October with the knowledge of employees?
Regards,
Priyanka Upasani
9850750998
From India, New Delhi
Hi, Priyanka,
The idea is good to retain talented people. Since you are mentioning in letter as it will be effective from september, It will not create any legal problem. I have small suggestion here to avoid other problems,
a) The increment portion can be retained as retention salary.
b) In case if the employee terminates JOb in between, such retention salary is not payable.
Trust the above suggestion solve your problem
Cheers,
Ajay 9986398828
From India, Bangalore
The idea is good to retain talented people. Since you are mentioning in letter as it will be effective from september, It will not create any legal problem. I have small suggestion here to avoid other problems,
a) The increment portion can be retained as retention salary.
b) In case if the employee terminates JOb in between, such retention salary is not payable.
Trust the above suggestion solve your problem
Cheers,
Ajay 9986398828
From India, Bangalore
Well, there's no labour law as such because performance management and appraisal is specific to every organization.
However, as commented by a few members above, you must define your appraisal process, document it and communicate it to all the employees before implementing it.
Keep the process as simple as possible to avoid any confusion out of it. The best according to me is to have the appraisals in August / September and issue letters in September.
Regards,
Niki
From India, Pune
However, as commented by a few members above, you must define your appraisal process, document it and communicate it to all the employees before implementing it.
Keep the process as simple as possible to avoid any confusion out of it. The best according to me is to have the appraisals in August / September and issue letters in September.
Regards,
Niki
From India, Pune
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