Appraisal letters
Meaning & Definition
An appraisal letter is a formal communication from the employer to the employee that follows the completion of an employee’s performance appraisal process. The appraisal letter reflects the results of the appraisal process as well as the employee’s performance evaluation, salary adjustment, promotions, and effective dates. Appraisal letters also serve as proof of the employer’s decision regarding the employee’s performance-related employment changes, and they are part of the employee’s record with Human Resources.
Significance of appraisal letters:
- Outlines and conveys performance results and rewards in a formal manner.
- Provides written evidence of a salary increase or promotion.
- Explains to employees how they will know if they meet performance standards and how they can grow.
- Increases visibility into the performance management process.
- Is an important component of employee performance documentation used by HR for record-keeping and auditing purposes.
Legal & Regulatory Considerations:
Appraisal letter provisions do not specifically indicate statutory compliance.
But, directly related to Appraisal Letters are:
- Payroll accuracy is the accuracy of payroll reporting and maintaining records of salary changes made through appraisals.
- Income Tax compliance (CTC calculation determining TDS liabilities).
- Compliance with all Internal HR policies and Performance Management processes.
Appraisal letter outcomes must not break the statutory minimum wage or any other statutory entitlement. For more info, visit: Performance Management Software
