Is Legal Knowledge Crucial for HR in Handling Performance Appraisals in India?

Dear All,

I would like to know whether there is any importance in having legal knowledge while conducting performance/yearly appraisals (increments) for employees. Is there any law in India, like in other countries, that allows employees to sue their employer if the performance management system (PMS) is not conducted, put on hold, or if negative comments are documented?

What should an HR manager do if the company holds yearly appraisals but does not provide satisfactory answers when employees seek explanations, and the management does not provide the HR manager with any answers? Additionally, what should be done if there is no formal appraisal policy in the organization, and the decision on increment is solely based on the management's discretion without any specific percentage increase?

I am currently working on this matter and would appreciate any valuable suggestions.

Thanks in anticipation.

Dear Yogita,

Basically, performance appraisal and increment are different. Performance appraisal is one of the tools for increment. There is no law for increment in the private sector. It is the choice of management to do it once, twice, or any number of times in a year. As a manager in HR, you can inform employees that management has not yet decided on this point.

Regards,
J. S. Malik

Thank you, Mr. Malik,

I know performance is different from increment appraisal, but in the case of management not granting an increment, it is something different as it is done for some employees without any consultation or information from HR. On discussing the yearly salary appraisals of other employees, bosses change the topic. For the last 3 months, I have been trying to convince them of the same thing you told me. However, as they do not communicate anything to management, all of them are now looking for new opportunities. My concern is not to lose such a good team in any department.

Yeah, a good question. Even I am struggling a lot with employees. First of all, employees don't perform well and ask for appraisal or increment. Increment should be given based on the percentage decided by the company, but what about the appraisal.

Regards,
Srinivas Nednurkar