Are Private Companies Legally Required to Give Appraisals to All Employees? Seeking Legal Insights

Working as an employee in the legal department for the last 2 years, there have been no appraisals in the past two years. Only a few employees have received appraisals.

My question is, is a private company legally obligated to provide appraisals to every employee and at what percentage? I am seeking information on the legal grounds or any relevant cases by the Honorable Supreme Court regarding this matter.

Thanks in advance.

You mean 'appraisal' is Performance Appraisal. This is not a requirement under any law! This is only a documentation process to decide on employees' performance and promotion potential, if any, to decide enhancement of salary/perks/promotion/additional responsibility, etc.

Thank you.

Dear colleague,

Having a good employee performance appraisal and feedback system in the private sector is one of the sound human resource practices, but it is not legally mandated. Therefore, there are no chances of any legal case having traveled to any court, let alone to the Supreme Court.

Regards,
Vinayak Nagarkar
HR Consultant

The Role of Performance Appraisals in Employee Careers

Periodical performance appraisals decide the life and career of the employee. Every aspect of an employee's career is based on the appraisals of their official superiors. As such, appraisals have civil consequences for the employee. The principles of natural justice require that employees be taken into confidence on every aspect that is of critical importance to their life and career. In my understanding, this could be a valuable tool in HR management.

Statutory Requirements and Best Practices

Maybe there are no statutory requirements in law, but that does not impede management from evolving healthy human development tools and practices. In fact, it is the norm in public services that adverse remarks in Annual Confidential Reports (ACR) need to be communicated; public servants have the opportunity to represent and seek legal remedies in exceptional cases. Since 2009, the ACRs have become Annual Performance Appraisal Reports (APAR), and the entire reports are being communicated based on the law declared by the Apex Court.