Is it legally valid to give salary hike without following any rules or criteria.

Is it legally valid for the Head of a private hospital in TN, registered under Societies Act, to give yearly salary hikes differently to different employees without assessing their work, following any kind of rules or having any kind of criteria or without any kind of salary systems (like Basic, DA, HRA, etc.), but just deciding on 'I'll-do-as-I wish' approach?

Dear friend,
Definitely 'I'll-do-as-I wish' approach will be short lived approach and cannot stand for long. It will manifest in terms of resignation of good performers, good candidates unwilling to join such a hospital and those who don't leave will stay inside as disengaged and disgruntled employees. No good will come to the hospital by it.
It is also a great point for any trade union to unify the employees (if not already happened) and get the management to bow down to start fair practices.

'I'll-do-as-I wish' approach is unfair practice. But as long as the employees are paid statutory minimum wages with dearness allowance revised as per CPI ete. Salary increase beyond the same is purely a managerial prerogative and in that angle the management is safe with regard to compliance. The risk, as already pointed out by Hremprel, is that disconnected workmen will always tend to form trade union for their collective bargaining.

Thank you for your responses. It is not the question of how big or small the hike is. The issue is how a person can decide different increments to different people, without any criteria. Either it should be percentagewise, or by performance appraisal, or giving equal hike to everyone or following a company rule. But none of these are applied in this case. In the Pay System there is no Basic, DA, HRA,etc. or any kind of revisions done. Also, there are no minimum wages rules applied. Some get big pay, some very low. Simply an act of favouritism or nepotism.

My question is whether we can approach labour office regarding this. Whether we have any legal support to our stand? Will we get justice? There is no Employees Union. The Hospital is in TN.

Please advice. Thank you.

An increment or rise in salary is subject to company/hospital policy.

A Wage Increment is subject to Govt. Notifications issued at TN.

You can approach Labour department. The grievances of the employees who have no reportees under them will be addresses there. They will get minimum wages with six months retrospective effect. Those who have reportees, ie, Managerial persons will not get any protection under the law.