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One big exception to not having to pay salary increases

by , 05 May 2016
As of late, many employers have been asking the following question: 'Is it absolutely compulsory to pay your employees an annual salary increase?'

The short and sweet answer to this questioning would be a definite 'No'.

So then, that's settled, right? Not quite, there's an exception to this rule. And if you fail to realise it, you'll be caught out for unfair labour practices!

So keep reading to find out what that exception is...

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Exception:  

If your employment contracts state that you'll give your employees annual salary increases, then you must.

And if you've guaranteed an annual salary increase in your employment contracts, you can't go ahead and unilaterally remove that right by replacing their employment contracts with new ones. This would make you guilty of a breach of contract.

So what can you do?

You must get their agreement to make any changes to the employment contracts
 
CAUTION: It's worth noting that there's even an exception to this exception! In other words, you can still be guilty of unfair labour practices even if your contracts do not provide for annual increases.
In a situation like this, your employee would have to prove that he was entitled to an increase and that you never have a valid reason for not giving him one.
 

*That was the one major exception to not having to pay annual salary increases to your employees.

But did you know that there are other exceptions as well? And if you don't know what they are, you risk being exposed for unfair labour practices!

So to learn what these other exceptions are, simply page over to Chapter S 20: Salaries and Wages in your Labour Law for Managers handbook, or click here to order your copy today. 

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