How Does Increment Stoppage Affect an Employee Already on Stagnation?

Dear Sir,

If a person is already on stagnation, how would the punishment of stoppage of increment for years with cumulative effect work? Does that mean the employee will be brought down to the two increments he had already earned and was dreaming of? Please explain the literal meaning and also whether the punishment will have a retrospective effect or prospective.

Thank you and regards

Understanding Stagnation and Increment Stoppage

The employee is on stagnation, meaning there is no scope for earning any more increments in the pay scale. Therefore, prima facie, the stoppage of increment is rendered unimplementable. This contingency could be avoided if HR advised properly before the punishment was imposed. Yet, in situations where the punishment of stoppage of increment is imposed, it becomes difficult to implement, making it a complicated and messy affair.

Possible Alternatives to Implement Orders

a) Most government sector organizations have a policy to accord stagnation increments every alternate year, subject to a maximum of three increments. The stagnation increment could be stopped, but the punishment period would double.

b) Await the next wage revision. Since pay fixation is mostly done based on a fixation formula (not point-to-point fixation), this should leave scope for earning increments after pay fixation in the revised scale, allowing the order to be implemented. However, the punishment period and its effect will be abnormal in such cases.

Clarification on Penalties

The position is clarified with respect to the following issues: Does that mean the employee will be brought down to the two increments he had already earned and was drawing? Bringing the basic pay down by two increments is technically a different penalty—it is a reduction and cannot be used in the implementation of the penalty of stoppage of increment. Governmental undertakings list stoppage of increment as a minor penalty (not necessary to hold an inquiry to impose punishment), while reduction is a major penalty (Constitutionally protected right to be heard before punishment is imposed). Therefore, the rules and procedures for both punishments are different.

Retrospective vs. Prospective Punishment

Please explain the literal meaning and whether the punishment will have a retrospective effect or prospective. A punishment can be given retrospective effect, though in the majority of cases, it is only prospective. However, it does not mean, for instance, stoppage of increment with two years back effect. The principle is that basic pay is the substantive pay one has earned, and it cannot be adversely affected except according to the legal procedure.

Understanding Salary Stagnation and Increment Stoppage

Salary stagnation is a phase in the employment grade system when there is no opportunity for the employee to advance to the next grade. To halt an increment on disciplinary grounds could impact future increments. However, it is not feasible as it would mean reducing the two increments that the employee has already earned. This essentially pertains to the current wage structure of the employee, which cannot be retracted.

It is advisable to review the provisions outlined in the Standing Orders of your establishment. While freezing fringe benefits is a possibility, it is important to have discussions and seek consultation before implementing any changes.