Are Resigned Employees Entitled to Increment Arrears for Months They Worked?

Respected Seniors,

Kindly guide for the following situation: Company policy is to give annual increments from April of every year to the eligible employees. Due to some reasons, increments have been delayed for 4 months. In the meantime, some eligible employees resigned from the service and were also relieved (their accounts were settled). Increments were not declared and not paid till date.

In such scenario, whenever the company declares the increments, whether the outgoing employees were eligible for arrears of increments for those months actually they worked. Expecting your valuable guidance.

Regards,
Sekhar

Hi,

Usually, companies do not have policies to give increments or arrears to exited employees; however, there can be some exceptions. For example:

1) If the appointment/last increment letter specifically guarantees (or can be proven in that fashion) that the employee will receive the next increment unconditionally, then in the absence of the increment, the employee can protest and ask for the arrears.

2) If the employee is protected by the union contract and one of the conditions binds the company to pay the arrears, even to exited employees.

Hope this helps.

Pavel Chopra

Dear Sekhar,

As per industrial practices, when increments have been declared, that is eligible for those employees who are in service. Once employees resign and are relieved, they are not eligible for increments, even if they provided services during the arrears month.

Regards,
Bhushan