Navigating Appraisals After Resignation: Are Employees Entitled to Both Ratings and Raises?

In a specific case in my organization, due to retrenchment, a few people were asked to resign based on their performance. However, as they completed 13.5 months of service, they were eligible for the appraisal cycle. They were given a notification about their rating at that time. There was no formal letter given regarding their performance rating.

The question is: Is the person eligible for both an appraisal rating and a raise, or just a rating? If the organization decides to provide an appraisal rating only, does that bind the organization to also give a raise? Does this situation have any legal implications if the company does not provide a raise or appraisal rating?

Dear Phsihsa, Are you removing a few persons because of poor performance or retrenchment? It appears that you have confused both of the terms. To know more about the conditions under which retrenchment is done, click the following link: https://www.citehr.com/219168-retrenchment-layoff.html

If you are removing a few persons because of their poor performance, then where is the question of a salary hike? A salary hike is given provided employees meet the performance requirement. If they fail to meet it, they are ineligible for the salary increase as well.

It appears that you have confusion in the Policy on Performance Appraisal. Why was the performance appraisal done after 13.5 months? Generally, it is done quarterly or half-yearly. Therefore, upon completion of their employment, if the appraisal is done and the rating is below the expected level, they are liable for removal from employment.

There is no legal binding on salary increments as long as wages are above the minimum wages. However, the important thing from a legal standpoint is proper communication on the continuation of employment vis-a-vis their performance. Have you done that?

Thanks,

Dinesh Divekar