The Appraisal Letter is a critical employment document used to formally communicate the results of performance evaluations and corresponding changes in employment terms to employees in India. It serves multiple purposes: documenting performance assessments, confirming salary revisions, recording promotions or role changes, and maintaining official employment records as required by Indian labor laws. The document is typically issued following periodic performance reviews (annual, semi-annual, or quarterly) and must comply with various Indian employment regulations, including the Payment of Wages Act, 1936, and the Industrial Employment (Standing Orders) Act, 1946. The Appraisal Letter becomes an addendum to the original employment contract and holds legal significance in establishing revised terms of employment.
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1. Letter Header: Company letterhead, date, reference number, and employee details including name, employee ID, and current designation
2. Salutation: Formal greeting addressing the employee by name
3. Opening Paragraph: Reference to the appraisal period and acknowledgment of the performance review process
4. Performance Summary: Brief overview of the employee's performance during the review period, including key achievements and areas of excellence
5. Compensation Revision: Clear statement of the new compensation package, including basic salary and other fixed components
6. Effective Date: Specific mention of when the new compensation package takes effect
7. Closing: Congratulatory note, encouragement for future performance, and formal closing with authorized signatory details
1. Role Change: Include when the appraisal comes with a promotion or change in job responsibilities
2. Special Recognition: Include when highlighting specific awards, certifications, or exceptional achievements during the review period
3. Development Plan: Include when specific growth areas or development goals need to be documented
4. Retention Bonus: Include when a special one-time or retention bonus is being awarded
5. Transfer Details: Include when the appraisal involves relocation or transfer to different department/location
1. Compensation Structure Breakdown: Detailed breakdown of all salary components including basic salary, allowances, and benefits
2. Performance Metrics Summary: Detailed scorecard or performance metrics that formed the basis for the appraisal
3. Benefits Summary: Overview of additional benefits, insurance coverage, and perquisites applicable to the new grade/role
4. Stock Options Schedule: Details of any stock options or equity benefits being granted, if applicable
Relevant legal definitions
Clauses
Relevant Industries
Information Technology
Banking and Financial Services
Manufacturing
Healthcare
Retail
Telecommunications
Education
Professional Services
Real Estate
Energy
Media and Entertainment
Logistics and Transportation
Consumer Goods
Pharmaceuticals
Relevant Teams
Human Resources
Legal
Compensation and Benefits
Performance Management
Employee Relations
Talent Management
Operations
Executive Leadership
Relevant Roles
Human Resources Manager
HR Director
Compensation and Benefits Manager
HR Business Partner
Performance Management Specialist
HR Operations Manager
Talent Management Director
Department Manager
Line Manager
CEO
Managing Director
Department Head
Vice President
Chief Human Resources Officer
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