Is Our Salary Hike Approval Letter Format Legally Sound? Seeking Advice!

Dear Seniors, I would like to know if a letter is being sent for approval to Management (e.g., Director/CMD) regarding a salary hike or a change in an employee's payroll. Is the format incorrect if we mention the name of the Group Company at the top, along with the address and phone number on a white A4 size paper, and then include the body/content of the letter where we separately mention the payroll under which the employee is currently or into which payroll the employee is being shifted? This is subsequently followed by the signatures of the HR department and Management. Will the Accounts Department face any legal issues? Please help!

Firstly, I am not able to understand your query. Can you be more precise?

Secondly, from whatever you have put before us, I do not think there is any legal issue.

Office Note Format for Salary Hike Proposal

Have attached a format of "Office Note" wherein an employee's salary hike is proposed. The format has been made such that the COMPANY NAME (Mother concern) has been mentioned at the top with the address, followed by the payroll (sister concern) of the employee.

Questions Regarding the Format

1. Is the format correct?
2. The Accounts department is saying that they might face issues in the future because, according to them, the format is incorrect. Moreover, they are saying that in an approval note, both the Company name, i.e., the mother concern, as well as the sister concern, should not be mentioned. Is it so?
3. Is it always necessary to take approvals of office notes on letterhead?

Hope that I was able to explain the situation.

Thanks with regards.

1) Your accounts department is correct. At the top, your current company name is required.
2) The basis on which the salary hike is proposed must be mentioned as an annexure.
3) For approval, I think one more signature is required from the individual who will check and recommend the salary hike.

Thank you.
Regards.

• I would suggest only one correction to the approval note: ABC Private Limited should appear on top and not XYZ. The so-called mother concern has no relevance to this approval for ABC Pvt. Ltd.

Dear Trishnita, Are you seeking an increase in salary officially from the HR/Accounts side within the company? You do not need to use the company letterhead. A simple file note will solve the issue. If you are seeking a personal salary increase for an employee, you cannot use the company letterhead for personal matters.

Increment Letter Approval Process

Are you sending the increment letter for approval? The main company can direct the sister concern to provide the increment instead of seeking approval. Therefore, the current format is incorrect. If you are sending the increment letter after approval, then your format is acceptable. The increment letter should be given after the annual appraisal period, and a copy must be provided to the employee.

Purpose and Ethical Considerations

The purpose of writing such a letter is unclear. Although there are no legal issues with the letter, it is ethically questionable. I hope you can understand the issues in your letter.

Wishing you all the best.

I have gone through the suggestions of our friends regarding your issue. I personally feel that it is not a problem at all. For internal purposes, one should not use letterhead, etc. Plain paper is enough to obtain the necessary approval from the authorities of the sister concern or main company, as the case may be.

As soon as you get approval from your boss for the increment or salary revision for any of your employees, only then will you need to provide a letter on the letterhead of your sister concern. The mother company has no role to play in this issue. As raised by your accounts department, on one letterhead, there should not be two company names, which may lead to legal problems on certain occasions in the future.

Regards,
NVRao
Naidupeta, AP