Is a Promotion During Probation Without a Salary Raise a Sign of Job Confirmation? Seeking Legal Advice on Salary Deduction

Point-wise Details:

1. The terms in my employment contract are as follows: You will be on probation for six months from the date of your joining. The period may be extended at the discretion of the management depending upon your work and conduct. You would be deemed a confirmed employee of the organization only when a communication in writing confirming your services is issued. During probation, this employment is liable to be terminated without assigning any reason and without any notice from either party. After confirmation in the services of the organization, this employment is liable to be terminated without assigning any reason but giving one month's notice or one month's salary in lieu of notice by either party.

2. I was promoted (without any raise in salary) in the third month of probation.

3. Even after working for eight months, no confirmation in writing was issued.

4. I left in the ninth month without giving any notice period, as I was not confirmed.

5. I was not issued a PF account number also.

6. In my full and final settlement, the company has deducted one month's salary, as they are saying that promotion amounts to confirmation.

7. One month's salary is quite a huge amount for me.

8. Please advise what legal recourse is open for me.

The cause of the entire instance is non-communication and assumption. The theory of communication teaches us to never assume anything and to communicate well in advance. When these principles of communication are not followed, it leads to interpretations that suit the respective party. This disagreement could also escalate into conflict.

Terms of Appointment

One of the terms of your appointment, as mentioned in the appointment letter, states that "You would be deemed to be the confirmed employee of the organization only when a communication in writing confirming your services is issued." It is explicitly worded. Therefore, non-communication from the HR department cannot imply confirmation of employment.

Partially, there is non-communication from your side as well. There is nothing wrong with looking for a better opportunity. However, you could have informed your future employer that you will confirm the exact date of joining after confirmation from the current employer. You assumed and interpreted the situation the way you wanted, hence this disagreement.

Solution to the Problem

As a solution to your problem, you may write an application to the MD of the company and inform him that the deduction of one month's salary is wrongful and goes against the clause mentioned in the appointment letter. If he does not respond or responds unfavorably, then you may approach the Labor Officer (LO) in your area and explain your problem. If he intervenes, that is better. If not, then litigation may be the only solution for you.

Before approaching the LO, I recommend you obtain your experience-cum-employment letter. Ensure that there are no outstanding dues against you. You may also keep the HR Department of the current employer informed if you approach the LO.

Final Comments

Going against the terms of appointment reflects poorly on the HR department. It is the duty of the HR department to bring clarity through proper communication on the status of the employee, whether confirmed or still on probation. Conversely, interpreting non-communication to their advantage is unprofessional. This is a classic case highlighting the importance of organizational communication. When organizational communication fails, it erodes the credibility of the organization in general, and of the HR department in particular. For almost his entire career, the originator of this post may view HR suspiciously.

Thanks,

Dinesh Divekar

Any kind of promotions or salary increments require an official email and document. This can only help you in your future. Make sure you receive that.