First and foremost, when you ask for advice, business etiquette demands proper disclosure of your name, your designation, and your role, etc.
Employee Standing Orders Act, 1946 in India
In India, we have the Employee Standing Orders Act, 1946. Under the provisions of this act, the company is supposed to prepare standing orders. These are certified and approved by the Labour Commissioner of the area. Do you have anything of this kind in your country?
Provisions of Standing Orders
- The company can do internal transfers.
- It is mandatory to receive official communications from the company.
Any transgression on the part of an employee is construed as "misconduct." The various types of misconduct are well defined in the standing orders.
Appointment Letters and Legal Actions
The companies that do not have approved standing orders insert certain clauses in the appointment letter itself. Under the provisions of the appointment letters, management can take action against the employee. I recommend you check the terms and conditions mentioned in the appointment letter. For any violation of the terms and conditions, you can issue a show cause notice to the employee. If the employee is still intransigent, then you can suspend the employee and order an inquiry.
Concerns About Promotion
These are the legal provisions. But then why are you backing out on the promotion? Who assured the said employee the promotion? Does that person have the authority to assure the promotion? If it is assured now, then what is the hold-up?
By backing out from the assurance, you are losing the trust of the employees. News of your backing out and her refusal to accept the letter (of her transfer without promotion) must have spread to all the employees. Has the episode not vitiated the atmosphere of the company? From my point of view, her superior is as much culpable as she is. Promotion is quite dear to one's heart. Employees wait for this good news. Employees give their best so they can scale up in the organization. By declining the promotion, your company has shattered her happiness. Be true to your promise, give her the promotion, and close the chapter.
Thanks,
Dinesh V Divekar