Dear All,
I am working in a small company. Right now, we have a marketing staff of 20 individuals. Some of them have been with us for the last 2 years, while others have joined more recently. This year, we have increased the salary for all employees. Now, my boss wants to send a new appointment letter to everyone with their revised salary. Is this okay, or are there any potential legal issues to consider? Please guide me on this matter.
Thank you.
From India, Delhi
Acknowledge(0)
Amend(0)
I am working in a small company. Right now, we have a marketing staff of 20 individuals. Some of them have been with us for the last 2 years, while others have joined more recently. This year, we have increased the salary for all employees. Now, my boss wants to send a new appointment letter to everyone with their revised salary. Is this okay, or are there any potential legal issues to consider? Please guide me on this matter.
Thank you.
From India, Delhi
Acknowledge(0)Amend(0)
742
Dear Sonal12345,
An appointment letter is given to employees at the time of joining the organization. Issuing a letter for an increased salary to the employees is an "Annual Increment Letter." Your boss/management has to approve these increment letters once the appraisal is done for all the candidates. Issuing a new appointment is almost illicit for the following reasons:
1. Employee tenure will be retaliated against, and no company shall engage in such activity, as the employee may already have the appointment letter back from the time of their joining.
2. These employees can dissent over company policies if the employer violates procedures.
The main point here is, if your boss has no idea about increment letters, it's HR's duty to educate him and not blindly follow instructions that could have dire consequences regarding the letters the company sends out. If your boss remains adamant and obstinate, you may prepare such a letter and obtain his consent before handing it over to those employees. Furthermore, it's advisable to practice taking acknowledgment of every correspondence, including increment letters given to those employees, and file them in their personal records.
From India, Visakhapatnam
Acknowledge(0)Amend(0)
An appointment letter is given to employees at the time of joining the organization. Issuing a letter for an increased salary to the employees is an "Annual Increment Letter." Your boss/management has to approve these increment letters once the appraisal is done for all the candidates. Issuing a new appointment is almost illicit for the following reasons:
1. Employee tenure will be retaliated against, and no company shall engage in such activity, as the employee may already have the appointment letter back from the time of their joining.
2. These employees can dissent over company policies if the employer violates procedures.
The main point here is, if your boss has no idea about increment letters, it's HR's duty to educate him and not blindly follow instructions that could have dire consequences regarding the letters the company sends out. If your boss remains adamant and obstinate, you may prepare such a letter and obtain his consent before handing it over to those employees. Furthermore, it's advisable to practice taking acknowledgment of every correspondence, including increment letters given to those employees, and file them in their personal records.
From India, Visakhapatnam
Acknowledge(0)Amend(0)
[QUOTE=sonal12345;2055051]
Dear All,
I am working in a small company.
Sonal, I guess we cannot re-issue an appointment letter for an employee already working. Maybe you can provide them with a salary appraisal letter. If you release a new appointment letter, it will affect their gratuity period. ;)
From India, Hyderabad
Acknowledge(0)Amend(0)
Dear All,
I am working in a small company.
Sonal, I guess we cannot re-issue an appointment letter for an employee already working. Maybe you can provide them with a salary appraisal letter. If you release a new appointment letter, it will affect their gratuity period. ;)
From India, Hyderabad
Acknowledge(0)Amend(0)
Dear Sonal,
I am surprised at your boss's behavior. It's childish and ridiculous to ask you to re-issue the appointment letters since he is pleased to give his employees some rise in their salary. Normally, a person feels happy when some increment is granted to him, but if you resort to the action as proposed by your boss, your employees will be suspicious of your action and instead of being encouraged, they will be discouraged and demoralized. You can't re-issue appointment letters from the date of their original joining the company; it has to be from a prospective date, which is likely to affect their entitlement like gratuity and other statutory and non-statutory benefits as well. I have observed that none of our Cite HR Members have liked your boss's idea. You can convey this to your boss.
BS Kalsi
Member Since Aug 2011
From India, Mumbai
Acknowledge(0)Amend(0)
I am surprised at your boss's behavior. It's childish and ridiculous to ask you to re-issue the appointment letters since he is pleased to give his employees some rise in their salary. Normally, a person feels happy when some increment is granted to him, but if you resort to the action as proposed by your boss, your employees will be suspicious of your action and instead of being encouraged, they will be discouraged and demoralized. You can't re-issue appointment letters from the date of their original joining the company; it has to be from a prospective date, which is likely to affect their entitlement like gratuity and other statutory and non-statutory benefits as well. I have observed that none of our Cite HR Members have liked your boss's idea. You can convey this to your boss.
BS Kalsi
Member Since Aug 2011
From India, Mumbai
Acknowledge(0)Amend(0)Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Legal Clarification on Non-Performer Termination, Project Based Appointment Letter, Setting UP .pdf
Appointment letter-format.d oc