Can We Adjust an Employee's Salary After Reverting Their Promotion Due to Performance?

One of our employees was given a promotion. The promoted employee was put on probation for one year to assess his suitability for the promoted grade. After periodic appraisals, the management found him unsuitable for the promoted grade. Therefore, it has been decided to revert him back to the grade he held prior to the promotion. At the time of the promotion, he received a salary revision based on the grade to which he was promoted.

The office order issued to him included a clause stating that he would be reverted back to his original position if his performance was unsatisfactory. However, the order did not address the salary aspect. In this matter, can the management revise the salary to the grade the employee held before the promotion? We request expert views on this matter, please.

Dear Colleague, if the person was not found fit for the promoted post and is to be reverted to his earlier position, it follows that he is not entitled to the salary and benefits of the promoted post upon his reversal, even though the letter of promotion is silent.

Promotion on Probation

However, it is uncommon practice to promote someone on probation, which reflects poorly on the decision-makers' ability to assess capabilities. In this situation, no matter how justified the reversion may be, the individual will carry the burden of failure and may become highly demotivated.

Performance Improvement Plan (PIP)

Regardless of the terms stated in the letter of promotion, could he be placed on a Performance Improvement Plan (PIP) to provide a fair opportunity to demonstrate marked improvement in the identified areas of his performance? Just another perspective to consider.

Regards, Vinayak Nagarkar HR Consultant