Updating Appointment Letters: Should Long-term Employees Receive Revised Terms?

Dear Seniors,

Appointment letters are issued at the time of joining. If over a period of 6 years, a few terms and conditions have been revised and incorporated into a new appointment letter, do we need to issue the same to old employees as well, who have been working for the last 7 years or so? If so, how can this be done? By issuing a new letter to them or by another method?

Please provide an answer.

Regards,

Hello,

An appointment letter is, in fact, a "Contract of Employment" and is sanctimonious between the two transacting parties. It covers the "Terms and Conditions" of employment. Therefore, no adverse changes can be made unilaterally as that will amount to a breach of contract. Any changes made now can only be implemented prospectively.

However, if the employer has reserved the right to change the terms unilaterally, the employer may do so. But such a provision in the contract may cast a shadow on the contract's validity if questioned in a court of law! In my opinion, doing so would also be unfair and erode the employer's credibility in the eyes of all employees, old and new! I would advise against it here too!

Trust your query is answered.

Regards,
Samvedan
December 17, 2010

Thanks! It means we ideally should not issue a new one or change the terms and conditions. However, I believe if management reserves the right to change the terms and conditions (if mentioned in the document), then such changes should be communicated by different circulars. What do you say on this?

Regards,

Hello,

Yes, the management may choose to do so, and I also think that a circular is a better idea. Although, it will be difficult after a few years to identify the date of change and the change itself in the case of employees for whom changes are made through a circular. Furthermore, if this happens a few more times in years to come, HR's job will become much more difficult.

Regards,
Samvedan
December 2010

For new employees, you can issue the appointment in a new format. If you are revising the salary, include the revised salary details in the letter informing them of the changed terms and conditions. Be sure to obtain acceptance on the office copy.

Thank you.