HRSINGAPORE Community Discussions

Delay in Merit Increase

QUESTION

Dear HR Professionals,

Every year, our merit increase is in March and if the increment process gets delayed, we would usually back pay if we only managed to have it concluded in April. In our employment contract, we have this specific clause which indicates that it would be paid out in March: The base salary will be reviewed annually commencing March 20xx, taking into consideration your performance.

This year the Company globally is looking at delaying the merit increase payout to be effective on May instead of March. There are no plans to do a back pay of the salary to March.

With the above, kindly advise if the company could do the payout effective May instead of March given that we have indicated the merit increment to be in march yearly?

AL

 


 

REPLY 1

I am a little unclear, is it merit increment or yearly salary review?

Assume the company is not unionize. If I may suggest, deem you do a one-time exercise to review the employment contract clause to include – such as “is subject to company performance and individual performance, payout is subject to company discretion etc. Base on your current situation, contractually binding by the Clause. Only way is to communicate to employees of the current business situation (do it with care to avoid disagreement by employees on breach of employment term later).

Sharon

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