Employers are on occasions faced with the scenario where they are unable to provide a salary increase. Sometimes, organisations will implement a pay freeze across the business resulting from tough economic times. On other occasions, employers may choose to not provide increases to some employees based on poor performance. It should be noted that employers must always consider their requirements under the relevant underpinning award or Enterprise Agreement (where relevant) before deciding to implement a whole of company pay freeze. Employers should seek advice from Ai Group before determining that no increase will be provided.
The ‘no increase’ letter should be provided to the employee at the conclusion of the meeting or emailed as a PDF straight after the meeting.
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