Struggling with a Non-Performing Employee: Can We Legally Halt Their Increment with VDA?

One of our workers is not performing his tasks, and he has also not received any warning letters. Can we stop his annual increment?

I discussed this with Senior Management, but according to them, the company cannot stop the increment; at least VDA should be given. Can we stop the increment with VDA? If yes, please suggest the rules as well.

You will have to issue a charge sheet, conduct an inquiry, and then only you can stop the increment. Variable DA cannot be stopped as a punishment. It is generally difficult to prove underperformance in an inquiry as comparison is inevitable. You will have to examine downtime, material availability, performance by other employees, etc., in an inquiry.

Reasonably correct advice can be given only by examining settlement, if any, and standing orders.