Increment Letter Issued but Not Honored: What Are the Legal Options Now?

Hi! A Ltd. company listed on NSE has issued an increment letter (duly signed by the HR Head) to be effective from a back date. It has been over 10 months, and the increment has not yet been passed on. Several reminders have been given. Every time it is said to be on hold. Lastly, the new HR has been stating that those were called off and do not hold good. There has been no communication whatsoever after the issuance of the increment letter.

Can somebody please advise on the legal aspects of the issue?

Dear Mr. Basant,

Can you please name the company? Also, please find out why an increment has not been given even after 10 months. What is the reason for holding the increment?

L. Kumar

Dear Mr. L. Kumar,

The Company is Crew Bos Ltd. and the claim is for my wife. She was confirmed of appraisal effective 1st April 2007, sometime in May 2007. After she did not receive the same in her June salary, she started communicating regarding the issue, and then she applied for maternity leave from September to January 2008. After January, she applied for leave without pay until March 2008.

The scenario is that despite repeated reminders and personal visits, the company is not willing to provide the appraisal. Moreover, her maternity leave is also being held by the company on the pretext that it will not be granted until she submits back the appraisal letter. She had worked for a little over 12 months before going on maternity leave. The company has compelled some employees to resign where they have been unable to reach their desired settlement; the rest have been awarded the benefits.

We are seeking an opinion before taking any action.

Thanks,
Basant

Dear Mr. Basant,

I think this issue was discussed at length in this forum a few days back. The post was about the management stating that they will pay only one of either the Maternity benefit or the arrears. I advised to accept arrears and surrender maternity as it is a one-time benefit, whereas increments will keep accruing. Is this the same case?

Siva

Dear Sender,

I do agree with Mr. Siva that your wife may accept arrears and can surrender her MB benefits to the company. As arrears are a benefit continuously available, she may opt for that.

Regards,
L. Kumar

Dear Mr. Siva/Mr. L. Kumar,

Thank you both for your valuable time. Yes, Mr. Siva, it is the same case. But the suggestions were given by you, not made by the company. The company is not willing to agree to an increment at all, nor are they releasing the Maternity Benefit. All they want now is for us to somehow surrender the increment letter.

I don't mind if my wife resigns and contests her case. I understand the legal hardships. The point is, what value does the increment letter hold? Can the company fool around with people and mess up their careers like this?

Regards,
Basant

Dear friend,

You can fight it in court. You will win, but calculate the money that you would get.

Your wife resigns and goes to court for the arrears. The court gives an order in her favor after four years. You may get some money, but you would have lost the entire amount that your wife would have earned otherwise by working, which will be much higher.

Financially, it does not make sense. If you want to fight on principles and if you think you can bear the cost and hardship, then you can. You get satisfaction, but no one is going to praise you for that unless you fight for the cause of many.

Think and act. My suggestion is to make your wife leave the company peacefully and look for a job in a better company.

Siva