Dear Seniors,
I have come across many of your replies to the queries by the members on CiteHR and am quite impressed. First of all, thanks for your guidance!
I am working as an HR in one of the startup product companies, and I am very new in HR. I need your guidance on the following.
Scenario: We issued an Appointment Letter to the employees on the letterhead of our US entity in August 2020, not on the letterhead of the Indian entity. Now, we have been advised that we need to reissue the letters of appointment to the same employees on the letterhead of the Indian entity. These employees have had their appraisals implemented in April 2021.
Query:
Firstly, do we need to reissue the Appointment Letter with the old salary structure, or should I issue the letter with the new CTC structure applicable from April 2021?
Secondly, do I need to include all the old clauses in the new letter, or can I only issue a letter mentioning the new clause and CTC structure?
Looking forward to hearing from you soon!
Thanks in Advance.
Regards,
Swati
From India, Kalyan
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I have come across many of your replies to the queries by the members on CiteHR and am quite impressed. First of all, thanks for your guidance!
I am working as an HR in one of the startup product companies, and I am very new in HR. I need your guidance on the following.
Scenario: We issued an Appointment Letter to the employees on the letterhead of our US entity in August 2020, not on the letterhead of the Indian entity. Now, we have been advised that we need to reissue the letters of appointment to the same employees on the letterhead of the Indian entity. These employees have had their appraisals implemented in April 2021.
Query:
Firstly, do we need to reissue the Appointment Letter with the old salary structure, or should I issue the letter with the new CTC structure applicable from April 2021?
Secondly, do I need to include all the old clauses in the new letter, or can I only issue a letter mentioning the new clause and CTC structure?
Looking forward to hearing from you soon!
Thanks in Advance.
Regards,
Swati
From India, Kalyan
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Dear Swati M,
You have a case of wrong use of the letterhead. Now you are correcting the mistake. To correct the mistake, just issue the same appointment letter on the letterhead that has the Indian company's address. Keep the verbatim of the old appointment letter including the date of issue.
While issuing the fresh appointment letter, ask employees to deposit the old one and take the new one. It will be a matter of the exchange of the appointment letters, old and new.
While issuing a circular on the exchange of the appointment letter, just mention that this exchange has been mandated because of the incorrect use of the letterhead.
As far as the matter of an increase in salary because of the annual salary increment is concerned, it has nothing to do with the issue of the appointment letter with a new letterhead. Therefore, do not link both issues.
Though I have put forth my views, please wait for the other members to put forth their views as well.
Thanks,
Dinesh Divekar
From India, Bangalore
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8211You have a case of wrong use of the letterhead. Now you are correcting the mistake. To correct the mistake, just issue the same appointment letter on the letterhead that has the Indian company's address. Keep the verbatim of the old appointment letter including the date of issue.
While issuing the fresh appointment letter, ask employees to deposit the old one and take the new one. It will be a matter of the exchange of the appointment letters, old and new.
While issuing a circular on the exchange of the appointment letter, just mention that this exchange has been mandated because of the incorrect use of the letterhead.
As far as the matter of an increase in salary because of the annual salary increment is concerned, it has nothing to do with the issue of the appointment letter with a new letterhead. Therefore, do not link both issues.
Though I have put forth my views, please wait for the other members to put forth their views as well.
Thanks,
Dinesh Divekar
From India, Bangalore
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As rightly pointed out by our esteemed Dinesh Sir, please issue a revised letter on the letterhead of the Indian subsidiary, repeating verbatim the contents in full. Additionally, by a separate order, include the revised salary structure effective from April 2021, and cancel the earlier appointment order. Ensure to obtain an acknowledgment of receipt of the new orders and maintain it in proper custody.
From India, Mumbai
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From India, Mumbai
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(Fact Check Failed/Partial)-The user reply is incorrect. The appointment letter doesn't need to be reissued entirely; only the new CTC structure needs to be added as a separate order. The old clauses can remain.
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Hello Swati,
While you can follow whatever Dinesh has suggested verbatim to correct the situation in the short term, I have a basic query.
Why did you issue the Appointment Letter to the employees on the USA Letterhead in the first place? Was the Indian entity not formed in Aug 2020? If yes, then you may need to make suitable changes in the Appointment Letter you intend issuing now on India Letterhead. If no, then there's a possibility of legal issues being raised later by any over-smart employee on why the offer was given on the US Letterhead instead of Indian when the Indian entity exists.
Either way, I would suggest you bring in your legal advisor into this to ensure that any possible long-term consequences are adequately covered.
Regards,
TS
From India, Hyderabad
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While you can follow whatever Dinesh has suggested verbatim to correct the situation in the short term, I have a basic query.
Why did you issue the Appointment Letter to the employees on the USA Letterhead in the first place? Was the Indian entity not formed in Aug 2020? If yes, then you may need to make suitable changes in the Appointment Letter you intend issuing now on India Letterhead. If no, then there's a possibility of legal issues being raised later by any over-smart employee on why the offer was given on the US Letterhead instead of Indian when the Indian entity exists.
Either way, I would suggest you bring in your legal advisor into this to ensure that any possible long-term consequences are adequately covered.
Regards,
TS
From India, Hyderabad
Acknowledge(2)Amend(0)CiteHR.AI
(Fact Check Failed/Partial)-The user's reply is incorrect. The issuance of Appointment Letters on the US entity's letterhead may not necessarily indicate non-existence of the Indian entity. No legal issues arise inherently. It is advisable to focus on the current situation and legal compliance without unnecessary concerns.
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Add to this, I have one query: If we have to change any clause in the appointment letter and that change is applicable only to a few employees, can we re-issue the revised appointment letter only to those specific employees, or do we need to issue the letter to all the employees?
From India
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From India
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(Fact Checked)-The revised appointment letter with changed clauses should only be issued to specific employees affected by the change, not to all employees. (1 Acknowledge point)
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Revised rate.pdf
Appointment letter-format.d oc
CiteHR.AI
(Fact Check Failed/Partial)-The user reply contains incorrect information. The correct approach would be to issue the new appointment letter with the updated CTC structure applicable from April 2021 and include all relevant clauses. There is no need to exchange old letters. The annual salary increment should be reflected in the new appointment letter without linking both issues.