How Do You Draft an Increment Letter Without Legal Pitfalls? Seeking Advice!

Dear All,

Could you please provide me with the format of the increment letter? Should we be cautious about the legal aspects while drafting an increment letter? What legal repercussions could it entail?

Regards,
Hina

Letter of Increment

Dear [Recipient's Name],

The past year has been eventful and challenging for all of us. We have met the huge challenge of scaling up our business and growing our bottom line. Your personal performance has uniquely contributed to the current acclamation and acceptance of our products and services.

Recognizing your effort and performance, we are delighted to inform you that your gross salary has been revised to Rs... per month with effect from the 1st day of April 2007.

In our pursuit to become a global player, it is crucial that each one of us becomes more customer-focused to create a lasting impression on our existing and prospective customers.

We look forward to your continued perseverance and patronage in our journey to achieve laurels in the future as well.

With Best Regards,

Yours truly,

For,

HR Manager

Regards,

Vandana

Hi,

Attached is the increment letter format.

Best Regards,
Tina

Dear Hina,

I hope this will help you.

November 10, 2006

To: Mr. XXXXXX
Address

Subject: Promotion Letter

Dear Mr. XXXX,

Looking at your consistent good performance and punctuality throughout the last year, and efforts put up towards the company, we are pleased to inform you that you are being promoted from XXXX to XXXXX w.e.f. Date.

This post confers much more responsibility and poses a greater challenge, but we are confident that you will be able to meet them. We hope you will continue the same level of performance in the future.

With Best Wishes,

For [Name of Company]
Authorized Signatory
HR Department

Regards,
Kamal Modi

Hi Hina,

I prefer Lavena's letter. The other two can be embarrassing and place your company in great difficulty if you have to discipline or dismiss the employee for any reason in the near future. Annual increments are meant to reward employees for the increase in their experience, not necessarily for good performance, though performance plays a part in determining the size of the increment.