Can We Legally Challenge Our Company for Withholding Promised COVID-19 Pay Increases?

During the COVID-19 pandemic, the company did not give me an increment. However, the manager had mentioned that we would receive the amount, along with all the differences, during our next year's increment. Unfortunately, we did not see any difference in our appraisal. The only setback is that the manager verbally assured us of the difference amount, but he made this promise to all employees, so there are witnesses to this. Can we take legal action against the company based on this situation? The difference amount is significant.

Dear Colleague,

Increments and their implications

Increments are generally voluntary motivational financial increases given by employers considering their business performance. (Note: There are certain annual increments arising out of settlements under the Industrial Disputes Act, 1947, or by way of awards of Industrial Tribunals for those who are covered under the ID Act. These increments are mandatory and can be claimed if not paid.) In the absence of any settlement or award, any oral promise is a mere hope or motivation given to employees. No suit will be possible for such oral announcements. It is at the discretion of the organization and depends on how well the business and financial performance is achieved post-COVID, etc. However, at least the manager is positive and hopeful, which is subject to many factors and probabilities. Look for the best as many companies struggle to come back from COVID setbacks, and both employers and employees need to have transparent communication on what is possible and not possible. There should also be excellent mutual cooperation at this time of recovering back to normal.

Take care,

Dr. P. Sivakumar
Doctor, Siva Global HR
Tamil Nadu