Employee Resigned Over Notice Period Change – Should We Honor the Rejected Salary Increase?

While conducting a yearly review, we increased the notice period along with the salary for some key employees. One person did not accept the letter, stating he was unwilling to accept the increase in the notice period, and returned the letter. We explained that there was no alternative. He resigned from the job and requested to be relieved under the old notice period terms, which we honored. Now, this person claims that his settlement should include the increment amount mentioned in the letter he returned. How should I handle this situation?

Dear Ma'am,

When he rejects the increment with conditions, how could he expect the settlements with a new revised salary? Just go with the old terms. He is not eligible to receive the claim with new terms.

Simple. If he is not accepted, then there is no question of including the increment. Convey this to him clearly. Clear all his dues immediately and send him out.

When the person has rejected the increment letter due to the new terms and conditions, then he is not in a position to ask for an increment. Tell him that if he wants the increment, he should have accepted the letter. So, now he is eligible as per the old letter and its terms and conditions.

Dear Ma'am,

Increment During Notice Period

1) While he is in the notice period, is it advisable to offer an increment?

2) If he rejects the increment letter, it should be obtained in writing.

3) If he claims the increment after receiving his final settlement based on the earlier salary, he is not entitled to claim on the basis of the revised salary unless he provides his rejection in writing.

If he has not been settled so far, kindly do so immediately and relieve him promptly, even waiving the notice period.

Regards,
B. Saravanakumar

Please understand that he might already have another offer in hand and could be waiting for your increment before making a decision. He may have already communicated and negotiated the salary with the future employer. Such cases should be settled immediately. There is no question of an increment; settle him with the old structure only.

With Best Regards,
Thiru

Dear Mr. Lakshmi Gopal,

Since I am not from the HR Department, my opinion may not suit you. I have heard that in corporate culture, even asking for human rights is sometimes seen as an offense by management.

In your case, you have taken two actions simultaneously, whereas both actions have different purposes.

Increment Based on Performance

It is always right that increments are given based on the last year's performance of employees. Therefore, it is true that any increment given is a reward for the work already performed by the employee.

Notice Period Increase as a Management Requirement

On the other hand, the increase in the notice period is a requirement of management and does not concern the increment.

Management should inform their difficulties and requirements and convince all the key persons individually to get better results. A sympathetic attitude should be maintained from both sides.

It seems like a judgment that employees who are willing to accept an increase in the notice period will only be given an increment. Otherwise, no employee is eligible for an increment.

If the purpose of motivation and fulfilling the requirements of employees before they complain or ask for them is not given preference by HR, employees will never look back when they get an opportunity.

Therefore, you should convince each employee separately for the increase in the notice period and not link it with the performance of employees.

Thanks / Regards

ANIL

I completely agree with Anil's view. This may sound blunt, but your organization has been very smart to give a bitter pill wrapped along with the chocolate. If the intentions of the management were innocent, why was the change thought of only during increments? I do not think it is right to mix the two things in the first place. Increment and change in terms and conditions must be treated separately. I too am not an HR person, speaking as an employee.

Regards,
Shikha

Thank you for your comments. Let me brief you a bit.

We have announced the increase of the notice period to certain key employees. For some employees whose whole review is due at that time, we have mentioned it in the increment letters given. For those who do not have a review at that time, a separate letter was given increasing the notice period.

In this person's case, as he has resigned from the services due to the increase in the notice period, I have offered him a revised minimum increment based on the fact that he is leaving the company. However, he refused to accept the same and insists that the original increment is settled.

While I do agree that increments are for past performance, we also consider whether the person will continue in the organization while fixing the increment.

Now, please let me have your comment.

Thank you for your comments. Let me brief you a bit. We have announced the increase of the notice period to certain key employees, and for some employees whose whole review is due at that time, we have mentioned it in the increment letters given. For those who do not have a review at that time, a separate letter was given increasing the notice period. In this person's case, as he has resigned from the services due to the increase in the notice period, I have offered him a revised minimum increment based on the fact that he is leaving the company. But he refused to accept the same and insists that the original increment is settled. While I do agree that increments are for past performance, we also consider whether the person will continue in the organization while fixing the increment. Now, please let me have your comment.

Since he has not accepted the increment letter, he is not eligible for an increase.

Regards,
V. Srinivasa Rao

Advice on Employee Settlement

To fulfill the gaps, here is my advice: The employee in question cannot demand a settlement as he desires. His Full & Final settlement should consist of back wages only, as per the law. Therefore, proceed and inform him that he must either accept or decline in writing, stating the reasons. He also has the option to go to court for relief. As for HR, fight the case with full confidence.

Regards,
Manish Gupta
Admin & HR Manager

Date: 31.03.10

Dear Laxmi,

I agree with Phani Medavarapu's remarks, and you should follow the same.

Shikha

Dear Mr. Lakshmi Gopal, I will repeat my sentence here: both things should not be mixed. If you had offered an increase in the notice period first and not declared an increment at the same time, you could have revised or reassessed the thought of an increment. It's but natural that everybody looks for their benefit. An employee looks for an increment, and you are looking for his acceptance of the letter.

Secondly, an increment should not be given conditionally. You had offered two things at the same time, and it is up to the employee to either accept one or both. Management does not have eyes; it can only hear. Put yourself in the same shoes, and you will realize the fact immediately.

This is like there is only a perfect man in the world, whom every mother has. A mother can only speak goodness for her child.

Thanks/Regards

Increment letter can be conditional. If the employee agrees to the condition and accepts, then only he is eligible for an increment. Here, the employee has rejected the condition and resigned, so the question of settlement with a new increment does not arise.