How Can We Legally Prevent Resignations Right After Appraisals? Seeking Advice!

Dear All,

In the recent past, many of our employees have resigned immediately after receiving their annual appraisal. We would like to develop a policy to address this issue and make it clear that employees cannot resign within three months of receiving their appraisal. If they choose to do so, their appraisal will be considered null and void.

Please advise if this approach is legally sound and suggest any other strategies to prevent such occurrences.

Looking forward to your support.

Thank you,
Pradeep Arora

We have recently processed the appraisal cycle in April, and now one of our employees who was appraised has given his resignation. The notice period in our firm is two months. We don't want to process the salary with the appraised amount. Can we take back the appraisal? Are there any legal issues involved in this process?

If an employee resigns soon after their appraisal, can we retract the appraisal and revert to the previous salary? Are there any legal obligations for the employee or employer in this regard?

Please suggest...

Instead of framing a policy that would not allow people to switch jobs after appraisals, why not try to find out why these people are leaving?

Understanding Employee Resignations

Resigning pre and post-appraisal is a normal trend observed in many industries and companies. We cannot force anyone to work for us. Employment is non-binding, and both parties are allowed to end the employee-employer relationship at any time.

Alternative Approaches

Instead of framing a policy that may frustrate your employees, conduct an employee survey with the assurance of anonymity or hire a third party for better results. Identify the loopholes in your policies or practices that are leading to early departures.

Addressing Appraisal Concerns

Regarding your other two queries: If you have appraised your employees, issued appraisal letters with salary increments, and an employee resigns afterward, how can you retract the appraisal? This action can damage your reputation, and the employee may question why they are being paid less than promised, leading to potential breach of promise issues.

Legal Consultation

For legal procedures, consulting experienced lawyers would be advisable.

It seems that your people are resigning soon after their appraisals. Please consider if the appraisal procedure is at fault. A good appraisal system is one that is broken down into three distinctive parts:

1) Start off the appraisal by being polite and friendly, putting the individual at ease. An appraisal can be a traumatic experience, with the individual being nervous; after all, their future is at stake.

2) Begin the appraisal by discussing all the positives, followed by the negatives. Then discuss an action plan (with time limits) to turn the negatives into positives.

3) End the procedure on a high note, so that the individual feels encouraged and motivated.

I hope the above helps in some way.

Regards, Harsh