Employee Resigned in March but Worked in April: Should They Get the Increment?

Our company gives increments every year in April. In March, one of our employees resigned but worked in the month of April as a notice period. Will that employee be eligible to get the April increment? Kindly suggest your views.

Thanking you,

Biju

For the outgoing employees, an increment is not considered in many organizations. However, if the employee was in the good books of the management, there is nothing wrong with giving an increment.

Regards,
pon

If you have given him an increment with effect from April, then obviously you will have to pay him as per the revised salary.

Regards

If the increment amount is applicable from April 1st, this employee is eligible for the same. Also, such practices create a good impression for the current employees, and the outgoing employee is sure to be converted into a brand ambassador. Small gestures like this are very fruitful in the long term.

Regards,

I too agree with Ms. Archana that the person who resigned should be provided an increment for the 11-month period he served for the company. Additionally, as a goodwill gesture, an increment should be considered.

Good luck & regards,

PB Badri Vishal
Manager (P&A)
SBEC Sugars Ltd, Malakpur, UP
Mobile No. [Phone Number Removed For Privacy Reasons] / [Phone Number Removed For Privacy Reasons]

Archna is right—take her advice. Looking at it from the company's perspective, the amount involved wouldn't be much, but the payback would be quite high and long-lasting too. I tried it out in 2006 in the case of an employee (actually paid her the pay-hike arrears promised verbally—but couldn't be paid due to a cash crunch in the company—a few months after she left) and the effect was really good—how to utilize the goodwill generated is up to the organization concerned.

Regards,
TS

As per your query, the concerned employee shall be liable to receive the salary with an increment whether he/she is in the notice period. The HR policy of the organization may vary from your organization to another. Since the employee has worked in April, he is also liable to receive benefits, including the month of the notice period, i.e., April.

Thanks & Best Regards,

Increment After Resignation

Dear Biju, this issue can be looked at from three perspectives: labor laws (national), company policy, and good practice. Some countries' national labor laws prescribe what should happen under such circumstances, so you will need to confirm the position. Secondly, the provisions of your own company policy may dictate what should happen. If it is silent, then good practice dictates that you pay him the increment. As Archna and TS have indicated, it is a small gesture but a lifetime investment in goodwill, which modern companies cannot afford to miss.

Regards,
Njorio

Sub-Increment after Resign

As per standard good HR practices, the increment amount should be given to the outgoing employee as it reflects the organization's commitments and image to the staff members. However, it also depends upon the management and the current HR policy of the organization.

Regards,
YATENDRA KUMAR

Annual Increment Considerations

Granting an annual increment to an employee is not mandatory, but it is an act of appreciation by management to respect the talents and encourage him/her to continue with the organization in the long term. In the present case, if a staff member is about to leave the organization, then there is no meaning in granting them an increment. Being a brand ambassador is not as significant nowadays. Furthermore, most managements may not come forward to act in the name of goodwill gestures. However, if any management decides to release an increment to such an employee, it is well and good.

Regards,
A Elangovan

For the outgoing employee who worked in April and resigned after giving prior notice, it shows that he follows the regulations set up by your organization. Therefore, he is also entitled to receive benefits, including the month of the notice period.

Regards,
Kumar Malay Kishor
[Phone Number Removed For Privacy Reasons]

I agree with Pon that, in consideration of an increment for outgoing employees in many organizations, if you and your organization are willing to do so, it will be a good HR practice.

Thanks and best regards,

Sumit Kumar Saxena
[Phone Number Removed For Privacy Reasons], [Phone Number Removed For Privacy Reasons]

He is eligible for a yearly increment as per the terms of employment and service conditions of the company. It would be unfair if he is not given his yearly increment when others received theirs on April 1. Moreover, if there is a policy of yearly increments in April every year, he must receive the increment before his retirement; otherwise, it will be considered an unfair labor practice, and he will get relief if he raises a dispute.

Regards,
Madan Salgaunker

If it is not too beneficial to him/her or the company (depending upon the quantum of increment or the employee's services), we can avoid doing extra work while the person is on the notice period.

This is a good point for discussion. Most companies do not sanction any type of increment once an employee submits their resignation. We are also practicing the same.

In my perception, if we sanction an increment to the outgoing employee, other employees may not feel good.

Regards,
K. Ranga Raju

Dear Biju, I also agree with Ms. Archana. Kindly consider her advice if possible.

With regards,
Sameer K Ghosh

Increment Policy Considerations

Giving an increment is a good practice but not legally necessary. Thus, before making these kinds of decisions, involve the management and try to form a policy on these matters. I suggest considering Archna's views on it. Long-term gains are much better than short-term losses in these cases.

Regards,
Manish Gupta

Archna is right. The resigned employee has the right to receive the increment.

Regards,
Basha
Telecommunication Manager
MIOT Hospitals
Chennai

Hi, I have a different perception on this. There is no point in rewarding a resigned employee who is not on the roll of the organization on the date of the grant of the annual increment.

Yes, it is a good practice to give him the increment for a month. It will go a long way in promoting goodwill and would result in positive feedback for your company, not only from the departing employee but also from the current employees.

I worked with Indian Bank in Dubai since 2011. As per the bank's standard, our increment pay year is from April to any time. However, our bank policy dictates that the increment is payable in the month of September or October.

I apparently resigned from my position at the bank in September '14. Am I eligible to receive my increment from April '14 to September '14? Additionally, my incentive and airfare have also not been provided.

To the best of my knowledge, if you resign, the last salary drawn entitles you to this increment. If this is incorrect, please clarify. Is this determined by HR policy, management decision, or a mid-management decision?

I kindly request your assistance with this matter. Your help would be greatly appreciated.

Regards,
Amit

I am working in a travel domain software company. I received an increment letter on January 3rd. On January 8th, I resigned. Am I eligible for the incremented salary? The notice period is one month.