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We have peculiar situation where an employee has rejected the salary increment letter provided to him on the grounds the % increment is very less. He is ready to continue on the same base salary he was drawing the earlier year. Please let us know if he can reject the letter and ask for the rollback processed in the payroll.

From Netherlands
Dear RMN
Yes he has rites to reject the increment. Mean while try to convince him to accept or convince management for more increment. Whether his performance is good?
I believe he might look for change of job :)

From India, Bangalore
Hello RMN,
Jeevarathnam is right.
There is absolutely no rule that the employee MUST accept what's being given.
And, like Jeevarathnam mentioned, in all probability, he would begin to look elsewhere.
Looking @ the situation from another angle, it's a sort of Test for HR:figure-out the actual reasons why such an increment was given ['actual' meaning apart from what's being given officially]. While such cases of disparity between what an employee expects & what's given by the Superior always exist in any organization, it must have been very high in this case--for the employee to take such a tough & drastic stand--of refusing.
Unless you do some digging of the causes/reasons for this situation NOW, even if you don't resolve this case [the Worst-case-scenario with the Best-case-scenario being you resolve this case too], you would at least be pre-empting future such cases--when it could result in a crisis situation than a one-off kind.
All the Best.

From India, Hyderabad
Some people might express their dissent out of frustration. Give some time and he will reconcile and accept the increment. Pon
From India, Lucknow
Hey Aecrajesh, I go with what all the members said above. Employees have full right to refuse the appraisal & I so very agree with tajsateesh. Here is where the HR churning starts. HR needs to look into a problem as this is where the tiff between the employee & organization starts & ends up with organisation losing a good employee or employee having a grievance leading to inefficiency.

From India, Chandigarh
What logic is there in working at even lower rate than what is being offereed to him. This seem to be just a method of registering a protest.
According to me, a person can not reject his increment. He has no option but to take the cheque processed by the payroll department. He may chose not to encash the cheque, but that will mean he will not get a salary. HR and Payroll department are not bound to accept his request / rejection and roll back the figures in the software, etc.
The real point in this is the reaction of HR to the matter. If the employee is critical and good, then it may be necessary to enhance the increment to the level wanted by the employee. If not, HR needs to explain how the increment is decided and show (if possible) that it was fair. If he does not agree, he can leave and HR can find someone to replace him

From India, Mumbai
i think a polite request from the employee to reconsider his case would be acceptable, but rejecting the increment would amount to insubordination - the company has to look after many employees and salary structures - not accepting the salary would disturb this structure and also the ill will that the employee feels will show in his work performance and this can have an adverse affect on his colleagues.

HR would have to look at the real reasons and the performance of the employee...else one should let them go... no one is bigger than the establishment.... if an employees does not like the job, he / she cannot be an asset and no one is forcing him to continue. if the increment is not accepted by the employee, he must submit his resignation and be relieved immediately.

this is an opinion and i am not sure what the legal stand on this could be. (labour laws, etc).

hope u don't loose a good employee just b'coz of poor increment. many employees get misguided and do not look at the bigger picture and the loss is on both sides.

hope good sense prevails.

all the best,


From India, Mumbai
There are two categories of employees namely workmen covered under Industrial Disputes Act and those who are not workmen under the ID Act

1. In case of workmen covered under ID act refer to any Settlement in vogue or Standing Orders applicable

2. IN case of employees who are not covered by the definition of ID Act, Indian Contrat Act is applicable

Employment is a contract. If the parties do not agree to the terms specified, they have a right to rejct. Please remeber, once the terms are rejected, the contract also ends.

Following situations may arise:

1. Employee does not sign the duplicate copy of the letter of increase( Which is generally followed by well organised companies)

Wait for a few days, wait till you credit his salary on new terms. If he does not raise objection except uttering a few

sentences out of frustration, ignore it, and the new terms come into operation.

2. Employee gives it in writing that he is not accepting the new salary

Give a letter indicating that the contract of employment will cease as he is not accepting the revised terms and conditions of

service.Mention in the letter that he can opt to get relieved immediately by paying Notice Pay or get himself releived by serving

the Notice Period.He sure will get back to you and either accept the new salary or opt to get relieved.

3.Employee returns the increased salary by a cheque.

Normally, this does not happen; but if this happens, explain the legal position to him,wait for two or three days, and if he

insists,encash the cheque and relieve him either by giving Notice Pay or by allowing him to complete the Notice Period>If he

changes his stance during this period, accept and allow him to continue and if he does not accept, then relieve him

I have read some postings here stating that the employee has a right to reject his increase. It is not the question of right but it is a question of contractual obligation. If either party decides to alter the terms and if one partty does not agree to the revised terms, then the contract ceases.

I am not discussing about workmen under ID Act here as I presume the employee you are referring to does not come under ID Act



From India, Chennai
Increment decision is decided by the Management. It is nobody right to refuse. If person does not want increment, then it is clear picture that he wants to go out or wants to show his exposure/importance to his HOD's. But, in the meantime HR can send his increment with his monthly salary in the bank. Ultimately, after depositing his salary, it shows that he has accepted the same.

From India, Pune
Dear All,
I have one question. Earlier was being given many responsibilities without any grade or salary hike. Since the management requested, I agreed to take up the responsibilities what they given. After one year, they grabbed all the responsibilities which they given to me and assigned to another person because of some office politics. The main reason is my Manager doesn't know anything. She is newly appointed and fully depending upon others. Whoever says she will listen to them and neglecting the honest employees.
Now they are trying to give another big role. But I bluntly rejected and said wherever I was earlier, the post itself is enough for me, I don't to take any multi-task work. because I was hurted by my Manager very badly, which I couldn't explain. Infront my colleagues, she insulted me very badly.
Please give your suggestion, what I did is fair or not.

From India, Bangalore

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