Dear Seniors,

I have come across many of your replies to the queries by the members on CiteHR and am quite impressed. First of thanks for your guidance!

I am working as an HR in one of the Startup product company and I am very new in HR. I need your guidance on the following.

Scenario: We have issued an Appointment Letter to the employees on Letter Head of our US entity in Aug 2020, and not on the letterhead of the Indian Entity. Now we have been advised that we need to reissue the letters of appointment to the same employees on the letterhead of the Indian entity and these employees have got their appraisal implemented in April 2021.

Query is:
Firstly, Do we need to reissue the Appointment Letter with the old salary structure or I should issue the letter with the new CTC structure that is applicable from April 2021

Secondly, Do I need to include all the Old clauses in the new letter or I can only issue a letter mentioning the new clause and CTC Structure.

Looking forward to hearing from you soon!

Thanks in Advance.

Regards,
Swati

From India, Kalyan
Dear Swati M,

You have a case of wrong use of the letterhead. Now you are correcting the mistake. To correct the mistake, just issue the same appointment letter on the letterhead that has the Indian company's address. Keep the verbatim of the old appointment letter including the date of issue.

While issuing the fresh appointment letter, ask employees to deposit the old one and take the new one. It will be a matter of the exchange of the appointment letters, old and new.

While issuing a circular on the exchange of the appointment letter, just mention that this exchange has been mandated because of the incorrect use of the letterhead.

As far as the matter of increase in salary because of the annual salary increment is concerned, it has nothing to do with the issue of the appointment letter with a new letterhead. Therefore, do not link both the issues.

Though I have put forth my views, please wait for the other members to put forth their views as well.

Thanks,

Dinesh Divekar

From India, Bangalore
KK!HR
1079

As rightly pointed out by our Learned Dinesh Sir, Pl issue revised letter on the letterhead of the Indian subsidiary repeating verbatim the contents in toto and by a separate order add the revised salary structure from April 2021, cancel the earlier appointment order. Take acknowledgment of receipt of the new orders and keep it in proper custody.
From India, Mumbai
Hello Swati,
While you can follow whatever Dinesh has suggested verbatim to correct the situation in short-term, I have a basic query.

WHY did you issue the Appointment Letter to the employees on the USA Letter Head in the first place? Was the Indian entity not formed in Aug, 2020?
If Yes, then you may need to make suitable changes in the Appointment Letter you intend issuing now on India Letter Head.
If No, then there's a possibility of legal issues being raised later by any over-smart employee on why was the Offer given on the US Letter Head instead of Indian when the Indian entity exists?

Either way, I would suggest you to bring-in your legal advisor into this to ensure that any possible long-term consequences are adequately covered.

Rgds,
TS

From India, Hyderabad

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