Promotion and Resignation Dilemma: Do You Get Arrears if You Quit Right After a Promotion?

Policy on Promotion and Resignation

The policy states, "Employees who have resigned would not be eligible for any increment or promotion."

Suppose an employee receives a promotion letter and resigns the next day. Will they receive arrears for the promotion in the upcoming salary?

Yes, he is eligible because the letter was already given. Suppose the new designation is Manager, and until yesterday, he was in the position of Deputy Manager. The notice period for a Deputy Manager is one month, and for the Manager position, it is THREE months. As the employee has received and acknowledged his promotion letter, his notice period is "THREE" months. Consequently, the payment of increased salary, arrears, etc., are applicable even though he resigned the next day.

Let the seniors comment.

Regards,
Kamesh

Thank you. According to policy, resigned employees are not allowed for promotion or increment. Does this mean that if an employee resigns before the release of a promotion letter, they are not eligible for arrears?

Promotion Timing and Resignation Concerns

Promotions are usually set to be effective from the first of June, but if the company delays the release of the promotion letter by 2-3 months and an employee resigns before receiving the letter, what should he/she do in such a situation?

Thank you.

Promotion and Resignation: Entitlement to Arrears

Here is the situation that has been presented:

1. The employee has been promoted.
2. He/she resigns on the very next day.
3. Issue - Whether he/she is entitled to arrears or not.

The fact remains that the employee has been promoted and is entitled to all promotional benefits from the date of promotion/assumption of charge of the higher post (in some promotion orders, it is mentioned that the promotion will be effective from the date of charge assumption). Accordingly, if the employee has assumed the charge or the promotion has been effective from the date of the issue, the employee is entitled to all benefits; otherwise, not. If he/she is entitled to benefits, he/she is entitled to arrears, whether it is for one day or more; it doesn't matter.

A question raised by one follower is that in the case of a delay in promotion after being due, arrears will not be payable. This is very true. Only being eligible for promotion does not entitle an employee to promotional benefits retroactively. In most promotions, promotion might be effective retrospectively, but the monetary benefits accrue from the current date. So, if an employee is on the company's payroll, his name appears in the promotion order, and he actually assumes the charge of the higher post (regardless of whether for one day or more), then only he/she is entitled to benefits associated with the promotion; otherwise, not.

Regards,
AK Jain
HR Professional.

Mr. A.K. Jain has clearly clarified the issue. An increase in pay on promotion means it is the presumptive pay attached to the post. When an employee is promoted, he or she will be eligible for the hike in pay from the day of assumption of charge of the higher post. Monetary benefits will accrue from the day of discharging the duty in the promoted post.

In the query, it is stated that an employee who received the promotion letter and on the next day resigns—will he get arrears for the promotion in the coming salary? Whether the employee has resigned after assuming the charge of the higher post or resigned without assuming the charge of the higher post is not clear. A promotion letter is an order of the management, intimated to the employee. Accordingly, the concerned has to obey the orders and act according to the order to become eligible for the benefits of the higher post. If the concerned has not acted—not assumed the charge of the higher post, then the benefit will not accrue. He/she will get the salary attached to the post in which they were working before the resignation.