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Anonymous
I received a salary increment in March. I now want to resign from my company due to the toxic work environment, which is becoming unmanageable. Previously, I chose to ignore it and focus on my work, but it has become too much to handle now.

Condition in Increment Letter

I have a condition in my increment letter that states I must work a minimum of six months with the organization after receiving the increment. What should I do in this case? If I resign after two months of receiving the increment, will they stop my incremented salary during the notice period? Can the company withhold my newly revised salary?

From India, Surat
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What is written in the increment letter?

Is it just that you have to work for six months post-increment, or are there any punishments/consequences shown in the letter, like having to work for a period of at least six months, failing which your increment will be stopped with retrospective effect from the date of increment or from the date of resignation?

Conditions attached to the increment

If the conditions attached to the increment are not specific, they can be challenged. However, if they are specific, it should be presumed that you have accepted the conditions mentioned in the communication. While holding an increment is unethical, since you have been informed of this in advance, your resignation may lead the company to stop the increment, even with effect from March, the date of increment.

Impact on statutory contributions

Certainly, if the salary on which statutory contributions like EPF are paid is reduced, this may lead to issues if the contributions are decreased due to your resignation. However, if the employer is contributing the PF contributions based on the revised salary until you are relieved, that complication will not arise.

Revised salary and minimum wages

Furthermore, if the revised salary is at par with the notified minimum wages, then the employer cannot revert it back or halt the increment. Any salary above the minimum wage is purely a managerial prerogative.

From India, Kannur
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  • CA
    CiteHR.AI
    (Fact Checked)-The user reply contains accurate information regarding the conditions of the increment letter and the potential consequences of resigning before the specified period. The details provided align with standard HR practices and legal implications. (1 Acknowledge point)
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  • Dear member,

    It is better to resign from a company where the work environment is unpleasant or unhealthy. However, your company has linked the disbursement of salary increments to your tenure with the company. How far this condition is legally tenable, I do not know. Regardless, you may submit a letter of resignation. Most probably, your company will recover the salary increments paid for March and may not pay the additional amount until your last working day.

    Whether to wait for six months or not is a decision you need to make.

    Thanks,

    Dinesh Divekar

    From India, Bangalore
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  • CA
    CiteHR.AI
    (Fact Checked)-The user's reply is generally accurate. However, it's important to note that the legality of the company's condition regarding the salary increment linked to tenure may vary based on the specific terms mentioned in the employment contract or increment letter. While the company may recover the salary increment paid for March if you resign before the completion of the specified tenure, the decision on the recovery and the continued payment of the revised salary can depend on the company's policies and the contract terms. It's advisable to review your employment contract and seek legal advice if needed to understand your rights and obligations in this situation. amendment: false (1 Acknowledge point)
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  • Sir, an increment is given after the annual performance review. The condition for work after receiving the increment is against natural justice. Even though a condition is mentioned in the increment letter, it is against the rules. I resign from the company, giving the notice period.
    From India, Indore
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  • CA
    CiteHR.AI
    (Fact Checked)-The condition to work for a minimum period after an increment is legal, as long as it was communicated and agreed upon. Resigning may lead to consequences, possibly affecting the incremented salary. (1 Acknowledge point)
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  • Whether you can quit your job shortly after receiving a salary increment depends on various factors, including your employment contract, company policies, and professional ethics. Here are some considerations to keep in mind:

    Employment Contract

    Review your employment contract to understand any notice periods or clauses related to resignations. Some contracts may require you to provide a certain notice period before resigning, which could impact your ability to quit immediately after receiving a salary increment.

    Company Policies

    Familiarize yourself with your company's policies on resignations and notice periods. Even if your contract does not specify a notice period, your company's policies may require you to provide advance notice before resigning.

    Professional Etiquette

    Consider the impact of your resignation on your team, projects, and employer. Quitting shortly after receiving a salary increment may be perceived negatively by your employer and colleagues. It's essential to weigh the professional implications and maintain professionalism throughout the resignation process.

    Future Employment

    Leaving a job shortly after receiving a salary increment may raise questions during future job interviews. Be prepared to explain your reasons for leaving and how it aligns with your career goals and aspirations.

    Financial Considerations

    Evaluate your financial situation and whether you can afford to leave your job without another job lined up. Consider factors such as savings, financial obligations, and potential unemployment benefits.

    Ultimately, the decision to quit your job after receiving a salary increment is a personal one that should be made after careful consideration of all relevant factors. If you decide to resign, ensure that you follow proper resignation procedures, provide appropriate notice, and maintain professionalism throughout the process.

    From India, Mumbai
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  • CA
    CiteHR.AI
    (Fact Checked)-The user's reply is generally accurate and provides comprehensive considerations for resigning after receiving a salary increment. It covers key aspects such as employment contract review, company policies, professional etiquette, future employment implications, and financial considerations. Overall, the response is informative and well-rounded. (1 Acknowledge point)
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  • I agree with the views expressed by Mr. N.K. Sundaram. I see two major points here:

    1. If it was explicitly mentioned in the appointment letter clause, it was an employee's choice to accept it or not. Once accepted, nothing can be done. The company must have done it after a few setbacks.

    2. Now considering the organization's viewpoint, people resign, and the company gives a salary rise to retain them (especially when the rise is given apart from the yearly appraisal period). Obviously, any organization would protect its interest.

    Dear anonymous, you need to think from the company's viewpoint also. If you can't sustain to continue there, be ready to even refund the increment amount and go on your terms. If it's viable, wait for the next four months and then get a new job.

    Don't burn your bridges. Aim for a peaceful exit. Isn't it?

    From India, Pune
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    Did you agree to the specific condition of '6 months work post increment' and sign any document accepting such a tagged condition to this effect? Before deciding to resign, ensure that you have a better offer so that you won't face hardships after quitting.
    From India, Bangalore
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