Respected managements!
I have to make an appraisal letter for my employee. I need to add one line in the appraisal letter (after the appraisal, you can't leave the company for at least 1 year).
I have to write in a formal way because this line is not a contractual line, but I need to include it in this letter.
Please help me with this; I will be very thankful.
Thanks.
From India, Delhi
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I have to make an appraisal letter for my employee. I need to add one line in the appraisal letter (after the appraisal, you can't leave the company for at least 1 year).
I have to write in a formal way because this line is not a contractual line, but I need to include it in this letter.
Please help me with this; I will be very thankful.
Thanks.
From India, Delhi
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Dear Sunakshi,
Do you mean to say that after conducting the Performance Appraisal (PA), a salary hike will be given to the employee, and because of the salary hike, the employee cannot leave the company for one year?
It may be noted that Performance Appraisal (PA) and the annual salary increment, though related, are two indistinct terms. Therefore, these cannot be used interchangeably.
Now coming to your query. It appears that employees leave the company even after awarding an annual salary increment. To curb their exit, you wish to make a trade-off. Take an annual increment but stay compulsorily for a year. Though such conditions are tempting for the employer, their legal validity is questionable. Under the provisions of which act can you introduce this condition?
PA is conducted to measure the work done in the past. The salary increment is a recognition of that. The organization should recognize the work, whether the employee stays with the company in the future or not. In the case at hand, your organization demands that not only should the employee render a desired level of performance, but over and above, he/she must stay in the organization also.
If you introduce a sentence of compulsory employment in the company for a year, then two issues will arise. One is what if the employee quits before one year? Will you ask the employee to refund the amount already disbursed? Secondly, what if the employee wants the freedom of choosing his career opportunities outside your organization and is ready to forego the annual salary increment?
Therefore, before initiating the whole thing, I recommend you consult a lawyer who handles the cases under the Indian Contract Act and take his/her opinion.
From the HR Management point of view, the case needs to be seen with due sensitivity. This condition could demotivate the employees. In that case, what will be the cost of demotivation? Will it be lesser or more than the total cost of the salary increment?
The employees work in the company when they are convinced that their intellectual growth takes place. They also work when they feel that they are learning something new in the company. However, the condition that you are proposing will put a focus only on the money. It will set off a culture of trade-off, and it is not good for the organization in the long run.
Final comments: - While you have asked for help in drafting a sentence in the post-PA letter issued to the employee, I have given a long post. It may sound like an unwanted lecture to you; nevertheless, it may be noted that the posts on a public forum are bound to come under public scrutiny. The essence of these forums lies in questioning and debating, and not obediently fulfilling the requirement of a fellow member.
Thanks,
Dinesh Divekar
From India, Bangalore
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8219Do you mean to say that after conducting the Performance Appraisal (PA), a salary hike will be given to the employee, and because of the salary hike, the employee cannot leave the company for one year?
It may be noted that Performance Appraisal (PA) and the annual salary increment, though related, are two indistinct terms. Therefore, these cannot be used interchangeably.
Now coming to your query. It appears that employees leave the company even after awarding an annual salary increment. To curb their exit, you wish to make a trade-off. Take an annual increment but stay compulsorily for a year. Though such conditions are tempting for the employer, their legal validity is questionable. Under the provisions of which act can you introduce this condition?
PA is conducted to measure the work done in the past. The salary increment is a recognition of that. The organization should recognize the work, whether the employee stays with the company in the future or not. In the case at hand, your organization demands that not only should the employee render a desired level of performance, but over and above, he/she must stay in the organization also.
If you introduce a sentence of compulsory employment in the company for a year, then two issues will arise. One is what if the employee quits before one year? Will you ask the employee to refund the amount already disbursed? Secondly, what if the employee wants the freedom of choosing his career opportunities outside your organization and is ready to forego the annual salary increment?
Therefore, before initiating the whole thing, I recommend you consult a lawyer who handles the cases under the Indian Contract Act and take his/her opinion.
From the HR Management point of view, the case needs to be seen with due sensitivity. This condition could demotivate the employees. In that case, what will be the cost of demotivation? Will it be lesser or more than the total cost of the salary increment?
The employees work in the company when they are convinced that their intellectual growth takes place. They also work when they feel that they are learning something new in the company. However, the condition that you are proposing will put a focus only on the money. It will set off a culture of trade-off, and it is not good for the organization in the long run.
Final comments: - While you have asked for help in drafting a sentence in the post-PA letter issued to the employee, I have given a long post. It may sound like an unwanted lecture to you; nevertheless, it may be noted that the posts on a public forum are bound to come under public scrutiny. The essence of these forums lies in questioning and debating, and not obediently fulfilling the requirement of a fellow member.
Thanks,
Dinesh Divekar
From India, Bangalore
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If it is not specifically written in an employment contract, then how is it enforceable? I’d be taking legal advice on that one, lest you open one big can of worms with unintended consequences.
From Australia, Melbourne
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From Australia, Melbourne
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Just curious,
How do you propose to enforce this clause? Do you think people will stay just because it is in the appraisal letter? Or do you think that this is enforceable in a court or in any other forum?
From India, Mumbai
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How do you propose to enforce this clause? Do you think people will stay just because it is in the appraisal letter? Or do you think that this is enforceable in a court or in any other forum?
From India, Mumbai
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An appraisal letter handed over to an existing employee is a letter of acknowledgment of his commendable services during the past year, and he is given an XYZ increment/perks, etc. The management or HR would look pathetic and pedestrian if it includes a clause of compulsory employment of one year effective from the appraisal date/letter, which is a sham on HR policy. If the employee does not perform up to your standards, call him, counsel him; still, if he does not perform, you can terminate his services through a proper HR framework, and it does not warrant any inclusion in the appraisal letter.
From India, New Delhi
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From India, New Delhi
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It is better to retain quality people through offering them loyalty bonus over the period of services in the staggered scale based upon years of services offered in the Company. Ashok kella Ahmedabad
From India, New Delhi
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From India, New Delhi
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Leaving or joining a company is based on mutual agreement with the terms and conditions mentioned in the appointment letter and accepted by both parties. Appraisal is the process of improvement and growth for employees and employers.
There is no need to state, "After appraisal, you can't leave the company for at least 1 year." The notice period for leaving a company is applicable as agreed upon by the employee.
Regards,
PNR
From India, Nellore
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There is no need to state, "After appraisal, you can't leave the company for at least 1 year." The notice period for leaving a company is applicable as agreed upon by the employee.
Regards,
PNR
From India, Nellore
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Performance appraisal is only a tool to measure an employee's performance for the review period (previous year) by his immediate supervisor and reviewed by his HOD and approved by a higher authority. Based on the rating - final rating - his increment is awarded, and a salary increment letter is issued to the concerned employee. You cannot ask the employee to stick to one year fully because of the increment. If you are awarding an excellent rating and proportionate increment to employees, you can arrange a meeting of all employees with the HR Director and inform them that their performance is reviewed, and management has extended its gesture by enhancing their package. Emphasize the importance of their involvement for the success and growth of the company in the days to come, and urge them to grow by helping the company to grow.
But never write in the appraisal letter that "you can't leave the company for 1 year."
From India, Aizawl
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But never write in the appraisal letter that "you can't leave the company for 1 year."
From India, Aizawl
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It will otherwise harm the organization. You would see the exodus of the employees because of this restriction, as well as prospective manpower would avoid joining the organization. Thus, the risk is multifold in the long run.
It is better to retain good people by offering them withholding bonus.
From India, New Delhi
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It is better to retain good people by offering them withholding bonus.
From India, New Delhi
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Pf name & dob change letter format.doc