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Dear All
I am working in a small company ,right now we have marketing staff of 20 nos ,some of them are working with us last 2 and some from less time span ,this year we have incresed the salary of all ,now my boss want to sent a new appointment letter to every one with their increased salary ,it is ok or have some legal issues in doing so.plz guide

From India, Delhi
Tax & Labor Law Advocate
Sr. Hr Executive @ Polymerupdate
Private Consultant On Labour Laws
+2 Others


Hi Sonal,

Instead of re-issuing the appointment letter with revised salary, what you can do is send them an increment letter.

Find below the format for your perusal:



Dear [Name],

Sub: Increment Letter

We are happy to inform you that based on your sustained performance over the tenure of your service since [Date of Joining] and on recieving satisfactory reports from your superiors, we wish to revise your compensation as described as under.

Basic - Rs.

DA - Rs.

HRA - Rs.

Conveyance - Rs.

Medical - Rs.

(Use your own format of compensation. I mentioned the above titles based on generic break up)

Please note that all the conditions of employment however, would remain same as per the order during your tenure of service with our organization.

We wish you all the very best in your career with our organization.


Authorized sign


Whenever any changes are made in the employment terms, it is always better to have a written application for it.

If you are changing the services or roles of the person, similar letter should be assigned to the concerned person(s).

This kind of letter helps company keep a track of what is being communicated, who does what, who is being compensated at what rate etc.

Above all, such letters are very essential to be filed properly and preserved in case of Audit. (Companies have to do HR Auditing just like financial Auditing)


Always issue such letters in two copies.

One copy would be handed over to the employee.

On the other copy, employee's signature should be taken and should be filed with other documents.

Hope it helped. :-)

From India, Mumbai
Sharmila Das

Dear Sonal12345,
Appointment Letter is giving to employees at the time of joining the organization. Issuing a letter for increased salary to the employees is an "Annual Increament Letter". Your Boss/ Management has to approve these Increment letters once after the appraisal is done to all the candidates. Issuing a new appointment is almost illicit on the terms -- 1] Employees tenure will be retaliated and NO Company shall do such activity, as teh employee may already hold the AL back at the time on his joining.
2] These employees can dissent over the company policies in terms of employer violating the procedures.
Probably, the point here is; if your Boss has no idea on increment letters, it's the HR's duty to educate him and not sightlessly follow the instructions that effect the dire consequences in terms relating to letters that company sends out. If your boss is still adamant and obsitinate; you may prepare such letter and take his consent before handing it over to those employees -- also can practise taking acknowledgement of every correspondence including increment letters given to those employees and have it filed in their personal file.

From India, Visakhapatnam

[QUOTE=sonal12345;2055051]Dear All
I am working in a small company ,
I guess we cannot re-issue appointment letter for the employee already working. May be you can provide them with salary appraisal letter. If you release new appointment letter it will affect their gratuity period. ;)

From India, Hyderabad

Dear Sonal,
I am surprised at your boss's behavior.It's childish and ridiculous to ask you to re-issue the appointment letters since he is pleased to give his employees some rise in their salary.Normally a person feels happy when some increment is granted to him but if you restore to the action as proposed by your boss, your empoyees will be suspicious of your action and instead of being encourged rather they willl be discouraged & demorlised.You can't re-issue appointment letters from the date of their originally joining the company and it has to be from a prospective date, which is likely to affect their entitlemnt like gratuity and other statutory and non-statutory benefits as well.I have observed that none of our Cite HR Members have liked your boss's idea.You can convey this to your boss.
BS Kalsi
Member Since Aug 2011

From India, Mumbai

Dear Ms Sonal,
Your query is not clear, it appears your Company had never issued any Appointment letters to Employees at the time of Joining like most of the small entities are doing. If this is the case you can issue appointment letters to all the employees.
Otherwise if you had issued the one at the time of Joining, just issue increment letters/performance letters. In increment letter you can also mention the new service terms and conditions.
With best wishes.

From India, Delhi
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