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Anonymous
Hi,
I work for an Indian company which have their presence since 50 yrs in India. (Head qtrs in Mumbai)
It's a renowned company and stable without any debt.
I been here since 3 yrs.
Irrespective of the cos. performance, the increments here always takes place after six months from appraisals. For instance, my appraisal was conducted in the month of March 2017. Later reviewed and ratings were closed in the same month.
We still haven't received our increment letters, now we are in August 2017.
The same is happened for over last 3 years and earlier as well.
We got the news - the letters will be distributed in sept and arrears from April will be credited in October (sept salary)
My query is, do we employees have any law or rule where we can take this up, and raise our concern, as this is followed over decades.
And, it's not just some company, they have employee strength of 3k plus across the group.
Also, Turnover crosses Rs. 15000 to 20000 Cr. every year.
Our company abides every law in the book. Do we don't have such employee law / rights where we can fight for our increments on time.
Please help.

From India, Mumbai
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Manojkamble
Sr. Hr Executive
Shallohal
General Manager
Ashutosh Thakre
Hr Professional
Swap1208
Manager Finance

manojkamble
377

Hi,
Please understand, your company is not doing anything wrong. Calculation of Increment every year is a very precious task which needs to be processed with keeping many things in mind. Yes, the process may take time but company is paying you with arrears amount as well so you need not to worry neither any action is required. Also, Govt ensures about minimum wages paid to the employees ontime or not but about increment the company - employee or the union of employee has to decide on mutual ground and this process needs time.


shallohal
29

Hi,
First, if I may suggest that you register yourself in this site? It would be best so that you can get more responses.
Getting to your query, since it's not that clear to me, there can be 2 scenarios: (1) Annual Appraisal policy is clear, (2) HR head is not that strong and backed by top management.
For the first one, may I know what is your policy for annual appraisal? Some companies start their performance evaluation earlier to cover the projected date of actual giving of appraisals (in other words, increments and promotions). This is due to the huge number of employees and it is very good that HR is just being proactive here. If this is the case, then your company is doing its best to provide to all employees.
For the second scenario, I can say that I commend your company in providing arrear. If you are clear about the annual appraisal but the actions of HR are different, I can see your HR has serious problems here. If it's supported by your top management then you can't do anything about it. But you need someone who is a very strong HR head who can turn this around and put in an 'on-time' policy. Top management must be supportive in providing appraisals on-time. Since the company has reputation, no one has the courage to remove this nuisance. The best way is to have a written survey which can help in improving the situation. With the number of people that can support that they are not agreeing with the current procedure can help you with your problems. But ensure that this survey is approved and not just for personal gain, but for all in general. Survey questions could be focused on company policies in general and not just about the appraisal. Good luck!

From Bangladesh, Dhaka
Ashutosh Thakre
273

Firstly, getting the minimum wages is a law and getting increments every year is a perk.... So, there is no law that the increment has to happen every year. Secondly, your appraisal was closed in April, were the entire organisations appraisals closed in April? If no, then the HR will not release the increments in lots, as this is a exercise in entirety...
Also, have you asked your HOD, as to why the delay? He may know the reason or may be thats the policy. So check first, even before you take a stab as, may be your intentions backfires and the company moral as a whole goes down.

From India, Mumbai
swap1208
Thanks for your revert Manoj.
This is my 4th job. all my previous companies use to give appraisals and increment on time / within 2 months from my appraisals.
If MNCs can.. then why can't we? Does this mean that we are or our domestic companies are inefficient?
Don't understand why it should take 6 months?
It's HR responsibility and duty to highlight this issue to management and resolve this issue..
If we are well getting appraised and rated on time, why delay in getting Letter and increment ?

From India, Mumbai
swap1208
Thank you Sallohal.
Appreciate your revert and advise on my post.
As u mentioned - Our policy for appraisals clearly states that employees should close their appraisals with their manager ratings before 31st March. This is ensured by backing up mails to managers and top management .
YES.. Our HR head is strongly supported by top management and it's their influence that the increments are delayed.
Out HR is very efficient in closing appraisals and ensuring entire organisations mid year and full year reviews are completed before 31st March. (It's their KRA)
There must be some rule for getting increment ontime ...
All my colleagues are with me for this.
Online survey is a good suggestion. Thank you

From India, Mumbai
manojkamble
377

Dear Swap,
As rightly said by Mr. Ashutosh Thakre Appraisals are perk and thus there is no law which states the applicability for date of increment. Please understand some time processes to take time to complete but it is necessary to think if it is really creating a loss to you in any or monitory way then it is worth discussing for it.


shallohal
29

Hi Swap1208,
I can see now -as you mentioned your HR is very efficient. This means there is no issue in the HR itself as the team are true to their tasks. The top management is the one who has delayed the approval. Don't get me wrong here, I am not against your company but I will explain further the reason. It's a full team effort to help the top management and your company to recover such delays. I say your company is doing the best they can to provide to all employees.
There are things that can affect such delays. One of those is the delay in payments coming from your suppliers/buyers which affects the whole budgeting. Another is that there could be no ready year budgetary plan by Accounts and Finance. I guess the problem is not easy for your top management to handle because this will take all the department efforts --teamwork. In a manufacturing industry, if the production is delayed it does not mean the issues are in production alone. There could be delay in materials. If there are delay in materials, one reason could be late in release of payment from Purchase/Supply chain/Logistics. Why the late of release of payment? -there could be delay in payment from buyers for the last orders shipped. What I am saying here is that in every delay there is a root cause that chains back from the beginning. The problem that you may be experiencing is a lot deeper than we can think of. And you may waste your time finding out the real problems and it may be beyond our capacity as well. In my personal life, I have a yearly budget plan ready for the next year. I normally finish this by December and it details all the birthdays, celebration months, school expenses, house and car bills, utility bills and all others. I keep a record as well of all the ins and outs of the financials for a yearly analysis -to let me understan if I expense more or if I save some. This budget plan helps me in ensuring that I have what I need in that month without delay. To make it short, the top management may prepare a yearly budget plan (if they don't have yet) that includes all costs/expenses, from manpower, machines and materials. In this way the appraisals will have on-time budget in fixed month because it's part of the budget plan, which means that there is alloted money for that particular month. Now let me add, it's not easy to do this because your Accounts and Finance has to do a deep analysis of the business to see where are losses and gains.

From Bangladesh, Dhaka
Venkata Vamsi Krishna Patnaik
199

Indeed correct that giving increments by exact dates becomes difficult for HR operations unless supported by Top management and other related wings like Finance.
HR can do their work on time and only push the Management for an early release.
Regards
Venkata Vamsi krishna

From India, Hyderabad
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