Dear All,
Please suggest me what to do if employer is not taking any initiative to do increments. Increments are stopped since sept 14. Employees are continuously following with me and i have forwarded the same to the MD of our company. But he is only replying ok and not doing the same.

From India, Mumbai
This happens in all companies which ever is facing recession or tough business environment. In this state, only HR will have crucial role to explain the situation to fellow employees and try to retain them.
Ask your director and get the clear picture and meet your employees and push the same message which your boss wants to tell to employees diplomatically.
This is also one of the experience for you and will be useful for you in future.
All the best.

From India, Chennai
As a matter of fact, increment is not a right under any act or statute. This you need to understand, but asking for increment or revision of salary is order of the day which no one can deny.
As told by our member Mr. Stephen, you can take this as your experience to run the company under crisis. Further, with this policy of your company, you may be loosing good hands naturally they may go seeking a green pasture.
You try to convince the people about the situation of the company and drag it for some months.
Keep well.

From India, New Delhi
You should also share as what is your own assessment of the situation. Is the company in a position to give the increments ?
If not then you should explain this to all the employees after consulting your Director

From India, Delhi
Dear M/s Dhanashree,
It is disgusting to learn that employer has refused to give increaments.I ask a simple question to employer.can he ask for diesel at same cost as one year before.or electricity or AMC charges or steel or chemicals .Even the salaries for new joinings are always higher for same position & calibre.In fact,employer should not think it as option give or not give.This is only due to no professional management & owner or director behaves as Lala.Now seconside.Every tenent is supposed to sign 10% rise in rent.Every school enhances fee structure every year.Milk prices increase.Give me example of a single school who reduced the fee next year.Every person grows & becomes older by one year.Sisters & daughters approach age of marriage .Person approaches age of marriage.Old parents demand more medical care.House falls short of rooms or square foot.Conveyance change from nothing to two whealer & then to four.Only increament can compensate all these.none the less,increament has to be over & above theinflation rate .I have seen standard of living & spending capacity going down year after year when increament rates are less than inflation.

From India, Delhi
You can gently pass on a message to your MD, saying Promotions and increments are part of the retention strategies of an organisation. If the MD is not showing interest in this direction, it is possible employees may suddenly leave the organisation for better companies and also spread the word that the organisation is not employee-friendly. Your MD should call all senior employees and share with them, his problems and hurdles to instill confidence in his employees. Without human power no equipment can work. He should realise that.
From India
i agree with sanjay kumar as he explained the position of employees rather debating management problems
From India, Hyderabad
Dear Mr. Sanjay Kumar,

Your reply is arrogant, and this never solve the purpose. If a HR talks like this, they will never get increment for their employees. They will find a way to make you job less. Govt have prescribed the Minimum wages to be paid considering all your above expenses, which has been revised every year. If your company is paying less than minimum wages, you can raise the complaint and take legal action.

But here, you are drawing more than minimum wages and demanding more which is regular increment on performance basis. Its an employer wish to give you increment, if he is not giving, you can start an union and fight if you can. You cannot dictate terms to an employer who is even paying salaries without any work in the company due to his business is in critical. You should sit and discuss with employer and solve it. If you are still not satisfied after the meet, you are always welcome to look for other job whoever is paying yearly bulk increments. You are not a slave for this company to work for life. You have liberty to take your own decision.


From India, Chennai
In the query raised, the employer has withheld the increment from september, 2014. As far as workmen of the employer are concerned, they are having legal right to earn the pre-existing right of the annual increment. Failure to pay the dues attracts panelty upon the employer. In case any employee happens to make complaint to Labour Commissioner, it will be embarassing for MD. For non-workers also the non payment of increment due is also violation of Payment of Wages Act as made applicable under Bombay Shops and Establishment Act. Supposing any one complains to inspector under the Bombay Act, or seeks information under the RTI Act regarding inspection of registers and non payment of annual increments to employees the problem will be faced by HR as he/she is firstly responsible for compliance of these provisions.An extract of Delhi HC decision will clarify the position below:

Delhi High Court

Jeet Lal Sharma vs Presiding Officer, Labour Court - ... on 15 March, 2000

"..there may be cases where the workman would be held entitled to receive the money as pre-existing right on the basis of the agreement between the employer and employee or as per established service conditions which have culminated into right in favour of the workman. Take for example, when a workman is not paid his wages for a particular period, he shall be entitled to file application u/s. 33-C(2) of the Act claiming wages for that period as he is entitled to receive the same at the rate agreed upon and at which the employer has been paying to him in the past

11. Thus the crux of the matter is that the workman can file an application u/s. 33-C(2) only when he is "entitled to receive" money, claimed by him. His entitlement to receive money is referable to pre-existing right which would be established if it has been earlier adjudicated upon or provided for i.e. recognised by the employer. This recognition can be either in the form of settlement or as per the service conditions."

Here the terms conditions seem to be agreed and the employer has merely witheld annual increments which fall due on annual anniversary of appointment date of an employee.

To say that it depends upon performance of employee is virtually imposing minor penalty upon employee by withholding the annual increment.



From India, New Delhi
Hallow friends,
It is stated that increment from Sep 2014 has not been given. Pl. recall that Minimum wages of certain scheduled employments have been increased wef 13.8.2014. Further PF ceiling has been revised from Rs.6500/- Rs.15000/-. These have considerably increased the CTC burden and financial budget and management. All Companies or Business houses can not also increase the price level as and when these statutory requirement increases. Further sanction of increment is not mandatory except the revision of minimum wages or D.A increase notification or there is agreement with Union or in the terms of employment. Some companies have adjusted the increment due against the increase in minimum wages PF ceiling increase etc. In other words increment has been absorbed or adjusted against the 13.8.2014 increase of minimum wages and increased ceiling of PF and so on. Hence we may wait for opportune time.

From India, Mumbai

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