Can Employee Reject His Salary Increment Provided?

Dear RMN
You must speak to your employee and know why is rejecting? Yourself mentioned % increment is very less. How much provided? Most of the managements are thinking themselves as great. Management & HR Department must leave ego. Similarly they are encouraging worthless persons
whereas right persons are not supported. On account of this background only
he might have rejected.
With regards
v.subbarao
9841103098

Hi Nirmala.
Ofcourse it happens in most of the organisations. That too there are more of office politics in maanufacturig organisations.
But my advice is to take the offer. That offer will help you for further growth either in the same organisation or for change of the organisaion. :)

As interim, you can compensate with inflation percentage but you cannot call it as hike. It is just similar to DA revision matching the living index. The regular appraisal is different, it has to be decent and transparent with respect to performance attributes. Many employers have started calling this sort of (7% hike) compensation as PMS process. Matching the inflation for some and additionally giving hike in salary for some, will result in blood bath. Any PMS evaluation process should have the approval of the employee. Any meagre hike will proportionately suck the deduction of PF/ESI/P-tax also and if the net salary is as low as the old figure, he can reject or wait till the next hike or appeal or look out for better prospect. Better not to give low hike that sucks.
Regards
Chandru

We are in same critical situation as RMN.
Can higher management gives increment of 7 % to one employee and 78% to other employee as both are working in same work?
It to be noted this increment came after 2.5 years.
first employee asking about reason for that.
Has he right to ask/know the reasons for this?
Also this employee has given options to management that
1. increase the salary up to other employee or
2. he is ready to work on same salary he was drawing earlier.
Kindly suggest?

I do not agree with one of the contributors that action can be initiated and the employee can be asked to leave -- and that it is contractual obligation for him to accept the increment etc.,. Legally every enhancement or otherwise is altering the main term of the employment contract which amounts to a fresh offer which may or may not be accepted. This does not mean that there is a breach of the original contract.

Terminating the services does not stand legal scrutiny and the test nor administrative action would settle it. It would only open the flood gates..!

The employee has every right to reject what is offered and there is no legal compulsions against it. The action if any contemplated will open a can of worms about the Performance management system of the organization and bias in the Appraisal system if any. Apart from this, I do not think the organization can take such a decision without any recorded or documented reason which is objective enough to stand the legal scrutiny.

If the Performance Appraisal system is objective and transparent, and the employee deserves the kind of treatment, then the organization is well within its rights and also can make the reasons and bases known to the employe and even contemplate making it public so that it could be a point of standard to other employees..!

Cases like this show that there is no proper and objective pre-determined Performance Management System and there is a lot of subjective considerations which call for greater introspection by the organization.

Even if the employee deserves the kind of treatment, there is onus on the organization as far as empowerment, and Competency Management which perhaps has not been shouldered effectively.

T.K. Vijay Kumar\

919845533066

I think, at the time of his joining employer had committed increment amount which should be implement in increment letter.

Dear All,

There are a few things we need to understand when we are discussing this particular situation.



1. Was the increment linked to the performance appraisal process?

2. was the appraisal process inclusive? i.e. did the employee appraise himself and did he agree with the rating he got?

3. Did everyone with a similar rating get the same increment?

In case the answers to all the above is "Yes" Then basically it is a case on a generally disgruntled employee.

In case the answers to any or all the above questions is "No" then the employee has every right to be dissatisfied and he should have access to a grievance redressal process. Give him the opportunity to plead his case before a grievance redressal forum.

In any case refusing to accept the canges to service terms is technically an indicator that the employee does not want to serve under the new service terms and hence can be asked to leave employment by resigning or by termination with full notice served or payment in lieu of notice.

The humane solution would be to speak to the concerned employee and get him to follow the correct grievance redressal process. Inform him that in the interim period pending redressal, you will pay him as per the new terms.

However in case of the employee refusing this solution, I think it is a case of the employee being disgruntled but at the same time being unwilling to take up his issues with the appropriate authority.

Regards

Savio

Dear RMN,
Without good / dedicated employees no organization will grow. First speak to that employee and get his feedback. Kindly think from employee end. Due to official work he may facing any problem in PERSONAL LIFE then FRUSTRATION or UNNECESSARY PRESSURE they will have.
Most of the employees sticking in one organization not only for salary other factors also there ( ex: Stability, Salary on extract date, Work atmosphere ....). Increment should be on employee performance or on inflation rate % . How the increment workout done, check either there is any partiality.
Employee may have problem in
1. Work timings
2. Work pressure
3. No Equal remuneration
4. Continuous work with leave
5. Unstable job security
6. Years of services & importance
7. Recognization & Refreshment Activities
8. Career improvement programs
9. Work atmosphere
Rgds
JAAK

according to my opinion there is no rule to accept the salary increment. but employee should try to convience the management and explain his problemes and needs,capabalities, performance.
Regards,
Veeresh

I would not really agree with lot of people here. I think employee has all the rights to talk about his appraisal and if he is not happy with the increment, he can have a direct one on one discussion with his manager and HR where he has to prove himself right for rejecting the appraisal. What if he is already underpaid..and employer has given minimal standard hike....??? What if he has all the data to prove his work and KPI's are met for the year....???? In most of the scenarios we would not get these cases where an employee has rejected the increment given to him....however if we get such situations, we should go back and check if he actually has data to show his work for the year, and if all the KPI's were met...inthat case we ofcourse are answerable...
Regards,
Nidhi