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payment of annual increment

(Querist) 04 July 2009 This query is : Resolved 
Respected friends

A private limited company in which 25 workers ( the monthly salary of every worker is below Rs 6500 )are employed. There is no trade union in the company.
During the financial yaer 2008-09, the company incurred losses due to economic slow down.
Whether the management is justified in refusing to give annual increment to workers on the ground of losses ?

Kindly clarify
sr laksminarasimman
A V Vishal (Expert) 04 July 2009
Yes, the management can with hold the annual increment on account of losses incurred by the company.
Guest (Expert) 06 July 2009
No. If there is written agreement or conditions in appointment letter or uninterrupted customary practice of paying increment, the management cannot stop increment on the ground of losses. Move the labour department by filing appropriate "statement of claim".

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