Stoppage of two increments with cumulative effect but the employee is on stagnation - CiteHR
KK!HR
Management Consultancy

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Dear Sir
If a person is already on stagnation how d punishment of stoppage of increment for years with cumulative effect will work. Does that mean the employee will b brought down to two increments he had already earned and was dreaming. Plz explain the literal meaning and also whether the punishment will have retrospective effect or prospective.
Thanx n regards
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Dreaming may plz be read as receiving
The employee is on stagnation means there is no scope for earning any more increment in the pay scale and so prima facie stoppage of increment is rendered unimplementable. This contingency could be avoided if HR could advise properly before the punishment was imposed. Yet in such a situation where punishment of stoppage of increment is imposed, it becomes difficult to implement and makes it a complicated and messy affair. In such cases, the possible alternatives to implement the orders are :
a) Most Govt. sector organisations have a policy to accord stagnation increment, in every alternate year and subject to a max. of three increments. The stagnation increment could be stopped, but the punishment period would double.
b) Await next wage revision. Since mostly pay fixation is done on the basis fixation formula (Not point to point fixation), this should leave scope for earning increments after pay fixation in the revised scale, so the order could be implemented.
So the punishment period and its effect will be abnormal in such cases.
The position is clarified with respect to the following issues:
Does that mean the employee will b brought down to two increments he had already earned and was drawing?
Bringing the basic pay down by two increments is technically a different penalty - it is reduction and cannot be used in implementation of penalty of stoppage of increment. The governmental undertakings list stoppage of increment as a minor penalty (not necessary to hold enquiry to impose punishment) while reduction is a major penalty (Constitutionally protected right to be heard before punishment is imposed). So the rules and procedure for both the punishment are different.
Plz explain the literal meaning and also whether the punishment will have retrospective effect or prospective.
A punishment can be given retrospective effect, though in the most majority of cases it is only prospective. But it does not mean, for instance stoppage of increment with two years back effect. The principle is that basic pay is the substantive pay one has earned and it cannot be adversely affected except according to the legal procedure.
Salary stagnation is a phase of employment in grade system when there is no scope on part of the employee to go next grade.
To stop increment on discipliniary ground can be effected for forth coming increment. But this is not possible as you hint out to brought down the two increments which the employee has already earned. This is nothing but the present wage structure of the employee which can not be seized.
You need to check with the provisions under the SO of your establishment. One can frezee the fringe benefits but discuss/consult before bring into action.
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