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gagandeepsingh.bagga (Practising Lawyer )     01 July 2011

Law for Salary increment annually

I am not a Labour Lawyer. I need help of  lawyers practising for Labour Laws on the following:

A person is working in a Pvt. Ltd. company for past three years. He annual package is 5.40 per annum. There has been no salary increment for past three years. He has written to the directors and manager of the company to increase his salary, but no response to the correpondence. 

The contract signed by him and comapany contains no increment clause. But, i am sure even this clause is missing, then also there must be some standard increment prescribed by Statute which should be increase every year.

Please let me know:

  1.  Is the candidate is liable for increment?
  2. If yes, then how much?
  3. Can he claim the increment for past three years? If yes, then what is the procedure?
  4. Applicable law for this case.
  5. Where to file the case for the claim?
  6. How much time it takes to get the claim?
  7. If the candidate is willing to leave the job, can he claim the claim of past three years, if yes, then how will the calculation be done?

I"ll be happy, if any of my legal colleague help me in this clarifications.

Thank you very much.



 4 Replies

JAYANTA BANERJEE (ADVOCATE )     01 July 2011

Dear Gagan,

I understand your pain working in the private company without increment.

I will first of all tell you that as there is no increment clause in your appointment letter you cannot expect it.

Secondly the increment is based upon your work performance and it is at the sole discretion of the management  that too after your performance is appraised either by 180 degree or 360 degree

It is sure that there is law on minimum wages but there is no law on increment and you cannot claim too 

 

himanshu harbola (Comp. Sec.)     01 July 2011

The Labour Laws only protects minimum wages for a workmen......increment in salary is a complete management decision....why not ur friend/ clinet change the Job as he already possess 3 years exp. plus on a decent package...definitely his/her salary will b enhanced once he/she changes the Job. No body can stop him changind the Job and getting into a higher package.

Kumar Doab (FIN)     04 July 2011

Majority of the companies conduct periodic appraisal, 180 degree or 360 degree and do communicate to the employees on increments.

If the performance of the company is good/company achieved growth in business, but still the company wants to grant low/moderate increments, company may send a communication reading like; due to pressure on reward budgets, this year, you are awarded with increment..........

Salary is not the only criteria for an employee being a workman or not.

In the post you have mentioned that neither director nor manager has acknowledged or replied to the correspondence. Professional and responsible managers/employers/HR personnel do not act like this.

Looking for better position, with better emoluments in a good company shall be a wise decision.

 


(Guest)

Dear Gagan,

 

Unless there is a running scale with the amount of periodical increase mentioned in the scale, you can assume that the employee has been appointed at a fixed pay. However, it is up to the discretion of the management to give appropriate enhancement in salary from time to time only after review of the annual self appraisal form.

 

However, pointwise reply to your queries is as follows:

 

1. Is the candidate is liable for increment?

     ANS: Only, if rate of increment is mentioned in the scale.

 

2. If yes, then how much?

    ANS: See Ans.1 above

 

3. Can he claim the increment for past three years? If yes, then what is the procedure?

    ANS. Yes, provided the rate of increment is specified in the scale of pay and is to be at annual or bi-anniel interval.

 

4. Applicable law for this case.

    ANS. All depends upon specification of rate of increment and the period of interval.

 

5. Where to file the case for the claim?

   ANS: No use, until you find answer to question #1, which only the affected person or the management of the organization can give.

 

6. How much time it takes to get the claim?

    ANS. The first thing is to satisfy whether any increment rate is specified or not.

 

7. If the candidate is willing to leave the job, can he claim the claim of past three years, if yes, then how will the calculation be done?

   ANS. No, if no rate of increment is specified. He can claim past increments only if the scale of pay prescrtibes rate and periodicity of increment.


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