APPOINTMENT LETTER - clauses regarding the appraisal cycle, which would specify the appraisal cycle of an employee

Dear Seniors, I want to add a few points or clauses regarding the appraisal cycle, which would specify the appraisal cycle of an employee, when he or she will be eligible for it, and how the clause should be stated in the appointment letter.
Please Suggest.

Hello,

Regarding your query, my suggestion is that you need not include details of "appraisal", salary review and revision, anniversary date etc. in the appointment letter. You can explain this and give information on this at the joining day of the employee, as a HR person.

In appointment letter, at best, you can add the following clause

"You shall be placed on probation for a period of --- months from your date of joining the company. After completion of --months from your date of joining, you shall be confirmed in the services of the company. On confirmation, your salary shall be hiked by --(Rupees ----) to Rs.xxxxx.xx(Rupees --------only)

Further hike in your salary shall be purely depending upon your work performance, attendance and punctuality, your behaviour at work and other parameters fixed by the company in this regard".

Hi Mr.Radhakrishnan,

When the hike after probation is subject to performance (and other criteria's) of the employee how come the numbers can be shared in advance? If we mention the increment amount in number writing in advance employee will take it as a right and will demand for the same irrespective of his/her performance?. No Company will add such clause in their Appointment letter. It will not be wise.

Rather a general clause may be added

You will be eligible for Performance Appraisal review after successful completion of______ (one year or six months ) subject to your performance and performance of the Company as a whole. This is purely at the discretion of the Management.

Hi Mr.Lakshmi Narayan

Your observation is quite okay. However, all these are subject to discretion of management and depend upon policy of company. Companies like ours, would put a new comer into probation only for three months and on completion of this, he shall be confirmed. On confirmation his salary shall be hiked by Rs.1000/- (flat amount- whether he is a workman, clerk or executive). Thus the new comer will be at ease for first six months. Then he will be put to tasks.

I have written based on our company policy. The increase is nothing in relation to his/her performance in job . Trust ,you have, by now understood.

Hi Mr.Radhakrishnan

Ok you are referring to some standardized hike. By virtue of completion of three months period employee will automatically become eligible for the hike. So completion of stipulated months is the criteria.. performance will not be considered as a scale to become eligible.

Here's an example of a clause that could be added to an appointment letter to specify the appraisal cycle and eligibility for appraisal:

"Appraisal Cycle and Eligibility: The employee will be eligible for an annual performance appraisal, conducted on a [specify time frame, e.g., calendar year] basis. The initial appraisal will be conducted after completion of [specify time frame, e.g., one year] of continuous employment with the company. Subsequent appraisals will be conducted annually thereafter. The specific dates and timelines for the appraisal cycle will be communicated to the employee by the Human Resources department. The appraisal process will assess the employee's performance, achievements, and contributions to the organization during the specified evaluation period. The results of the appraisal may be used as a basis for performance-related decisions, including compensation adjustments, promotions, and employee development plans."

It's important to note that this is just an example, and you may need to tailor it to suit your organization's specific policies and practices. Additionally, you should consult with legal and HR professionals to ensure compliance with local laws and regulations.