Navigating Employment Changes: Should I Sign New Terms Without an Appointment Letter?

Since August 2011, I have been working with a limited pharmaceutical company as a confirmed medical representative. About one year later, my division was taken over by my new employer (which is a publicly limited group company of France and an MNC) in July 2012. However, no new appointment letter has been issued by the new employer to date (i.e., August 2014). Instead, I was only given a welcome letter signed by the Managing Director in Xerox form.

Now, while providing the yearly increment (which I also received last year without signing any "Terms and Conditions" letter), my company has attached another paper named "Terms and Conditions" and is requiring me to sign and return it; otherwise, the increment will not be given. This paper contains appointment letter-like terms and conditions. When inquiring with the HR department, they mentioned that although there are no terms and conditions required to receive an increment, I have to sign the attached paper containing those terms and conditions; otherwise, the increment in arrears from January 2014 will not be provided. They also mentioned that the company forgot to obtain this signed document during the takeover period and is now rectifying it.

When asking for the appointment letter, the response was that the previous company's appointment letter and the Xerox welcome letter are sufficient to prove my employment with this company, and there is no need for a separate appointment letter to be issued (new employer issuing its appointment letters to those who joined after the takeover).

My Questions

1) Should the company issue a new appointment letter to me?
2) Should I sign this "Terms and Conditions" letter to receive the increment?
3) Are the old appointment letter and welcome letter sufficient?
4) Can my company take any legal steps against me for not signing and potentially terminate my employment?

Thanks in advance.

Should the Company Issue a New Appointment Letter?

In any act, there is no fixed format for an appointment letter, and it is not mentioned in any act that it must be issued to employees. So, consider whether it is necessary to continue in the new company or in the post.

Signing the "Terms and Conditions" Letter for Increment

Terms and conditions are necessary between an employee and an employer. If the situation demands, the employee should abide by the written terms and conditions. There is no harm in signing, whether it is in letter form or an agreement, to receive further benefits.

Are the Old Appointment Letter and Welcome Letter Enough?

Any dated letter is sufficient for employers to allow the employee into the organization.

Legal Steps for Not Signing and Termination

It depends on your luck for not signing as desired by, against the will of the employer. For smooth relations, one should show loyalty to the organization. It saves the employee from all types of hurdles.

Regards.

Thank you for your response. The issue I have raised is not an individual problem but rather one that affects all employees.

Additional Questions on Company Policy

A few more questions on this issue are:

1. Can the company retract an increment after it has been given for three months?
2. Since we are now under a new organization following the acquisition, why is it not necessary for the new organization to issue new appointment letters to us, as per your previous response?
3. Is it sufficient to prove that I am a confirmed employee of the new company by providing only the salary slip, the old company's appointment letter, and the new (acquiring) company's welcome letter?

Thank you.

Can the Company Revoke the Increment After Providing It for Three Months?

Why not? Their intention is not to halt the increment or reduce the benefits without notice.

New Organization After Acquisition: Is a New Appointment Letter Necessary?

It is not required to issue a new appointment letter. If needed, they may issue an identity card with the new company name, which can also satisfy the employee.

Proof of Employment in the New Company

Is only the salary slip, the old company's appointment letter, and the new (acquiring) company's welcome letter enough to prove that I am a confirmed employee of the new company? The issue of proving or not proving one's employment in the organizations does not arise in the company unless employment is terminated by either party. Granting an increment is vital in maintaining the employment, whether it is in the previous or new employment, welcoming the individual.

Attribution: https://www.citehr.com/504662-appoin...#ixzz3CAsYewme

According to me, in most Merger & Acquisition cases, the employees' aspect is also taken into consideration. The acquiring company takes the assets and liabilities of the merging company, and the people aspect is also part of it. There is a concept of the Original Hire Date, which is used for continuity of service and calculating various employee benefits. Please find point-wise responses as follows.

1) Can a company retract an increment after giving it for three months?

— No, ideally, an employer cannot retract an increment after giving it (unless the payment was due to a mistake). If the employer is still doing this, what reason is given to the employee? Demotion? More information is required for this.

2) As we are now under a new organization after the acquisition, why is it not needed for the new organization to issue a new appointment letter to us?

— It is not mandatory to issue a new appointment letter to employees. The old appointment letter with supporting documents is sufficient in most cases.

3) Is only a salary slip, the old company's appointment letter, and the new (acquiring) company's welcome letter enough to prove me as a confirmed employee of the new company?

— If an employee is already confirmed before the acquisition, they will not automatically become a probationer. If the new company is planning for resizing, it will not be much helpful whether the employee is confirmed or a probationer. In most appointment letters, there is an exit clause, and as per the exit clause, both parties can terminate the contract by providing notice or compensation for it.

Regards.

Hi White Eagle, as I have written in the first thread, the company is giving terms and conditions paper with this year's increment letter and telling us to sign and return it. Upon asking, HR mentioned that this is the terms and conditions paper which the company should have signed at the time of takeover 2 years back, but they forgot. On one side, they are saying that Annexure 1, which shows increment details, has no terms and conditions, but if I do not sign Annexure 2, which contains different terms and conditions like appointment letter, leave policy, termination of confirmed employee, travel policy, etc., the company will not give the increment. So, in April 2014, after giving 3 months' arrear increment (effective from Jan 2014), they deducted the total increment amount of the last 3 months (Jan-March) from the salary of April 2014.

- There are some very confusing terms and conditions in Annexure 2, so we are not signing.
- But HR is telling us to sign it to get the increment. (Though there are no terms and conditions for getting the increment, as per HR's mail). *(We got our last increment without signing any terms and conditions)*

1) Can the company do this deduction?
2) Can they put this terms and conditions paper with the increment paper?

Please reply.

Whenever companies are merged, there is an elaborate document where every detail is provided concerning all resources. In most merger cases, the new entity is bound to keep existing employees on the terms of the previous company for at least six months, and after that, the new entity is free to impose its own terms. Now, it seems that after the expiration of the said period, they are asking employees to sign their new terms and conditions.

I hope that in this case, a welcome letter is given to each employee, new identity cards and monthly payslips might be issued by the new company. I also hope that the date of joining remains as per the old company. You needn't worry about signing until the terms and conditions are not detrimental to your career. Legally, there is no problem at all; you may deny their terms at this stage, and they can't force you since they have already accepted you through the welcome letter on the previous appointment terms; otherwise, they could have asked you to sign the new terms.

Thanks

Specific terms and conditions of service are given in the appointment letter, and other general service regulations are provided in the Employee Handbook. Most of these things might already be in the employee handbook, so please check your handbook as it may help you. If you find them unreasonable and contrary to the existing laws of the land, then they will not have any legal standing, regardless of whether you have signed them or not.

I would still advise you that if you find peace by agreeing to these conditions, it's better to do so. Dealing with our legal system can be tiring and frustrating, and you may lose your peace. These conditions are typically added by companies to maintain discipline in the organization, and they may not have any legal bearing at all.

Thanks

The new company has acquired all resources from the previous company, including manpower; hence, the terms and conditions of your service remain the same. Any company may transfer its resources to another location for better utilization, including manpower. Generally, companies consider employees' problems on humanitarian grounds; otherwise, they may transfer you to any location where they have facilities. These conditions are typically included in the service terms.

New conditions are not added unless there is a change in your previous appointment/position. If your position is changed, new terms and conditions are added along with a new appointment letter.

Thank you.