URGENT - If A Company Defaults In Apprasing An Employee? - CiteHR
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If a company defaults in apprasing an employee without reason who has been a star performer (Other employees are appraised and Got increment)and also denies to pay the annual component which is part of salary what shd an employee do?
PL. Guide.
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For beginning, the concerned employee should sit up and first his immrdiate superior as to why he has not been appraised and given even the normal raise?

Did the denial appraosal happen all of a sudden? Surely for the whole year there ought to have things happeninh that would point to the fact that everything is not hunky dory!

But what is a normal Appraisal in your company? Is it a practice to discuss the appraosal with the appraisee and obtaine his concurrence or is it just Annual Confidential Report like in the Government (but even there the adverse remarks are at least shown to the appraisee.)

You could get better responses if you elaborate the Appraisal process in your company.

Based on the bare fact given in your mail, the only thing the concerned employee may be able to do is to ASK he has not been appraised and thereafter to pursue a suitable course of action concerning his association with company (without disclosing his mind.) But frankly if he has been an otherwise a Star Performer, what happended to him as per your report is too gross, stark and even the unthinkable.

People do NOT change overnight by 180 degrees and even if they do it might be to a given situation by way of a response. As HR I do not accept that even in the year under review the man's performance was deteriorating and neither the company nor the individual were even aware of this slow deterioration. May be your story has more fact that we do not know.

All in all this response covers a wide spectrum of situations responses and your example will offer many things for the managements to learn!



September 4, 2006
Hi Samvedan

thanks for the response.The facts are as follows:

1.He joined the company as BDM and was doing really good.He wanted to resign as his family was getting shifted to a diffrent metro where the company did'nt have there office.Company proposed to him that he shd start the operation there as Profit centre head.When he spoke about the appraisal and hike as the responsibility and challenge is involved he was told that once the office setup he will be apraised and increment will be made.His designation was profit centre head with no change in his salary.

after setup of the branch and when the branch started generating revenue,he again reminded the hr and also the head of operations but was told 'will be done'.He slowly lost interest and he had asked for his annual component which was due for a long time.One fine day without any reason The head called him and compelled him to Resign ,he did'nt do and asked for the reason but No reply.He is still working but not feeling happy.Pl.guide.

If you require any clarification pl. mail me.

Warm RGS


Now there are relevant facts and I will respond to these facts as frozen reality!

I think the company has acted absolutely in a non-professional way. It is more damaging to the company than to the individual. I do not mind if he was made to go and start operations without being granted appropriate salary rise (which would have been for the past year's performance anyway). This can happen to the best of us. What he suffered (going and proving himself once again) could be termed as "pangs of growth".

But what seems to have happened in reality was he was not only being taken disadvantage of but was also unjustifiably compelled to resign. It can only be his helplessness that he continued to be employed with such an employer!! His self respect should force him to leave this organization at the first possible opportunity!

Decidedly the company has treated him unfairly, wrongfully and crudely and took disadvantage of his helplessness. The culture of the organization seems to be terrible and the company cannot have any justifiable reason to act in the manner it did in this case. No professionally competent person would ever like to be employed with such a company and can not be blamed.

After all is said and done, I find that the events narrated in the case are too gross to be real. I have experienced different situations but this one takes the cake!!!



September 6, 2006
Dear Samvedan
Does it mean he should resign from the company and do'nt ask for any annual component due?Is there any legal remedy?He had continued in this organisation as he was given a challenging assignment and since he was assured of the increment and benefit he took this assignment .Now that the branch is setup and making profit ,they want someone to head this branch and compelling him to resign.
Yes ,its true,it is happening with one of the person.
Pl. reply.

As he is NOT a workman under Industrial Disputes Act 1947, he has no remedy in labour law. Under Civil law-I do not think he has, but I do not know.

See, the promises made to him are, in my view, NOT enforceable at law. It is only the ethics, sense of justice and fairplay and morality of the organization that will compel the company management to act one way or the other. I think he has little hopes of being treated fairly at the hands os such uncouth management.

Whether he should resign forthwith-YES for the sake of his pride and dignity, but being practical, he has compulsions of not being employed even for a day (the resume gets a blot and the chances of getting a new job when you are unemployed are far too less anyway.

I think he should resign BUT only after securing alternate employment (even if at a lower salary). I strongly recommend that once he resigns under the present conditions, he NOT withdraw the resignation under any conditions (even if the company apologies and/or doubles his emoluments or offers to compensate in any other way.) The psychological relations and equation with the employer is SHOT completely with such treatment being meted out by the company.

I repeat that the case is too gross to be real. It is very unfortunate that such things happen in the corporate world at all.



September 7, 2006
Hi Anagha :
The case is not unique as I came across similar ones. Going by your narration, as Samvedan pointed out, the organisation lacks the vital culture and attitude towards employees. The decision seems to be impulsive and arrogantly autocratic. In the process, the Head of the organisation has not thought about the cascading effect - however slow it might be - that this incident would have amongst other employees. If continued in same line, the organisation will sooner or later experience brain drain.
The affected employee can only hope and keep demanding his dues. He should secure a job and leave asap.
Rgds. Venkat
Dear Samvedan and Venkat Thanks for sharing your views .It will help him in taking decision.He has decided to leave and at the same time asking the company to clear the dues. RGS Anagha
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