I got appraisal in may month and I have resigned in august. Now the company has withdrawn the appraisal and have deducted the appraisal amount from my august salary by stating hr policy that it says if i resign within 6 months of appraisal they will recover appraisal. Can they do this by citing the HR policy which they keep on changing? My contract does not have anything related to this.
From India, Bengaluru
Dinesh Divekar
Business Mentor, Consultant And Trainer
Industrial Relations And Labour Laws
Partner - Risk Management
Sr.manager - Hr&admin
Advocate Prem Chanda Yadav
Management Consultancy


Pl check, whether there is a clause in your offer or appointment order or contract of service that you will be governed by the rules and regulations issued from time to time. The company may introduce or amend the rules and regulations by way of circulars which they would be putting in the public domain. Anyhow, to withdraw a benefit after giving it is in bad taste and is reprehensible.
From India, Mumbai
Dinesh Divekar

Dear iamsjs,

A senior colleague has given an apt reply. However, there needs clarification in your post. "Performance Appraisal" (PA) is conducted to measure the quantum of work done. After the PA, a salary increment is given. Therefore, what you received in May 2022 was a "salary increment". The PA and salary increment are independent terms and you cannot use them interchangeably.

Previous learned member has described the withdrawal of salary increment as "bad in taste and is reprehensible". It is the most appropriate description. Anyway, you are quitting an unprofessional company. Therefore, let it go and move on!


Dinesh Divekar

From India, Bangalore


Please check your Appraisal letter (increment letter). Normally in the increment letter there will be a clause saying that " in case of resignation within__months Company reserves its right to revoke the increment amount". Obviously you should have signed the increment letter and employer will present it as your acceptance. Performance appraisal is review for the past period but it has become very common among employers especially IT sector to revoke like this incase of resignation.

From India, Madras
Hi @all , thank you for your replies.

To provide response to every, :

1. The performance appraisal ans salary increment means same thing in the company that I work, I PA Is done mean you got salary increment in the company.
2. The increment(appraisal letter) is sent as pdf file over mail and we don’t sign it. Also, there is no such clause mentioned in the appraisal letter that I got about rolling back appraisal in case of resignation.

3. There is a clause in my appointment letter that hr policy can be changed time to time at company’s discretion and change in standard terms of employment may be communicated to employee through any medium. But such communication is not done in any way.
The thing is company have many issues with many employees and they change policies accordingly when the face any such issue. So there is no way to k ow when they change anything, only that we have to constantly keep an eye on policy changes.

So what I got from all replies is that there is nothing that I can do for such action done by employer?

From India, Bengaluru

If you are looking at the legal validity of the employers actions, the following regulations will apply.

1. The terms of appointment that was there when you joined.
2. Changes to the terms of employment that you agreed to (including deemed acceptance by continuing to work or not replying that you do not accept the terms). However, this means it must be explicitly communicated to you.
3. If the organisation has more than 50 employees at that location, the Standing Orders will apply. In that case, none of the HR Policies or procedure can be contrary to the standing orders, though they may be more favourable to the employees. This will never be allowed in standing orders.

Now, if it is a small office, standing orders do not apply, then obviously, you need to see whether you were informed of the changes. If not, the deduction is invalid. if standing orders apply, then the deduction is invalid anyway.

If your salary is below ₹ 18,000, then you are also covered by Payment of Wages act, under which such deduction is illegal.

Now what option you have?
You can go to the local Labour Commissioner and complain, He may help you unless you are at managerial level
You can go to a lawyer and have him issue a notice to the company. many times the notice is enough to make the company do the right thing.

You can also go to the labour union, NGOs or political parties who may help you. but in each case, there is a cost, which is basically the company will give negative BVG reply when your new employer calls to check your employment history.

From India, Mumbai
it means i have to accept and continue to work notice until it is over?
From India, Bengaluru
Advocate Prem Chanda Yadav

They can not do like this Appraisal done on previous works.
From India, Mumbai

It means, you need to take a call on whether you wish to fight it or let it go.
You could even fight it by leaving without notice (or without completing the balance notice)
The decision needs to be based on your needs and constraints

From India, Mumbai

Performance related increment can be withdrawn if the management finds that the employee is not going to serve the rest of the period. On the other hand, if the increment is a time scale increment prefixed in the offer letter itself as it happens to be in the case of offer letter of PSUs and major establishments, then the same is a right of the employee and should be given unless there is any comments to hold it due to any punishment imposed on the employee. But before initiating such withdrawal of increment which implies reduction to a lower grade, the employee should be given sufficient opportunities to be heard. The employer can quote the company policy in this regard which states that increment shall be withdrawn if the employee puts his paper within such period as it prescribes. Again, changing the company policies with regard to service conditions without complying with section 9A of the Industrial Disputes Act is bad in law and can be challenged. However, nothing will be maintainable if you have been working as a manager having functional authority of supervision and control.
From India, Kannur

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