Dinesh Divekar
Business Mentor, Consultant And Trainer
Umakanthan53
Labour Law & Hr Consultant
Ybalajisantosh
Employee Relationship, Grievance Handling,

Serving Notice period , eligible to get raise ?
Hello Everyone , I have a query regarding an Employee. He has a good track record for the performance but leaving the organization after two months.
If Management decides to give a raise for everyone in the company Is he eligible to have a raise ?
Please Suggest .
Thank you
Manasa
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Dear Manasa,

Simply put, your question is whether the employee under notice period has a legal stake in the general hike in salary offered to other employees. It depends on many factors. Moreover, there is no mention in your post whether the notice period undergone for the timebeing is on account of his prospective resignation or termination at the instance of the employer.

Since admittedly the outgoing employee has got a good track record, no harm in exercising the option of granting him also the hike in spite of his exit, if it is of retrospective effect. In that case, I think he has got the right to claim the hike on par with others. If it is resignation, the hike may change his decison to quit and he may withdraw his resignation before the expiry of the notice period. So, the quantum of the hike and the date of its implementation are crucial factors in such a situation.

Even at times, extraordinary hike with prospective effect can also play a vital role in the reversal of the decison of resignation effective from a future date.
it is purely a resignation and he is serving notice period now and we accepted it ,
My question is - does he has an option to claim? and is it mandatory to give raise for the employee who is in notice period ?
Dear Manasa,
Whether to give annual increment to an employee who is under notice period is discretion of the management. It has become discretion based decision because this situation was not anticipated and in the Policy on Compensation and Benefits or Policy on Performance Management System (PMS) eligibility criteria for annual increment was not included.
As of now take this as one-off decision however, amend your policy first. As long as you pay anything above minimum, annual hikes are beyond the scope of labour laws hence no comments can be offered.
Thanks,
Dinesh Divekar
An employee who has tendered his resignation has done so after looking into multiple options. In this case, the question arises if the HR has given him an option of salary hike in order to retain the employee and if the employee has turned down any increment offer. If the employee has turned down the monetary increment offer and has decided to move on, he does not deserve to get the increment with others.
Let me move out and see other options. If he likes your company, he will certainly join you back or withdraw his resignation.
The first question here arise is that as a HR/Employer have you initiated to retain him back, if the employee has resigned due to better prospect (basically the Hike) increment may change his mind to withdraw his resignation. If he has any other reason to resign and if you as HR/Employer can help him out to overcome the reason specified will be helpful in retaining good track record employees.
I dont think so that he is leaving for a raise , he might got a better position . HR and Management accepted the decision , if we give raise , I dont think he gonna stay .
That is what you think, did you speak to the employee for the reason of leaving, there may be other reason too, apart from better position and raise of salary, or you/your management simply accepted the resignation letter for the sake of accepting. You have mentioned that HR and management has accepted the decision then what is your role, secondly what is the take of your HR and Management with regards to the raise to be given for an employee who is in notice period.
Hello Saji,
Thank you for the information .
As you discussed we simply will not accept the decision of the employee..We asked him in the exit interview he replied for a better prospect .
Moreover we did not acknowledge his resignation email for 3 days because we want to retain the employee as he has got a good track record . after discussing all these things itself we made a decision and acknowledged his resignation.
We cannot force an employee to tell one more reason and it is his wish to address the issue and he has the responsibility to tell that .
We asked him multiple times but he is sticking with one answer i.e better prospective
Now you tell me if there is a suggestion . Iam happy to listen to ..
Thank you
Manasa
In such scenario it is advisable to give his entitled increment it will be for few month only, but it will have a great impact on the employee as well as others. It may change his mind too or he will speak always good for your company.
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