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Salary Increase Rejection Letter

Salary Increase Rejection Letter Template for New Zealand

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Key Requirements PROMPT example:

Salary Increase Rejection Letter

"I need a Salary Increase Rejection Letter for a senior software developer who requested a 15% raise, explaining that while their performance is good, our current budget constraints due to Q1 2025 market conditions prevent any salary increases at this time, but we'll review again in July 2025."

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Document background
The Salary Increase Rejection Letter is a crucial document in New Zealand's employment landscape, used when an organization needs to formally decline an employee's request for a salary increase. This document must comply with New Zealand employment law, particularly the Employment Relations Act 2000 and its good faith requirements. It typically follows a salary review process or a direct request from an employee, and should include clear reasoning for the decision, maintain professional courtesy, and where applicable, provide constructive feedback or future opportunities for review. The letter serves both as a formal record of the decision and as a communication tool to maintain positive employee relations while ensuring legal compliance.
Suggested Sections

1. Header Information: Company letterhead, date, recipient's name and address, reference number if applicable

2. Formal Greeting: Professional salutation addressing the employee by name

3. Acknowledgment of Request: Reference to the salary increase request and when it was made

4. Decision Statement: Clear and direct statement about the rejection of the salary increase request

5. Explanation: Brief but specific reasons for the decision, such as business conditions or performance metrics

6. Future Outlook: Information about when the decision might be revisited or next performance review date

7. Closing Statement: Professional closing that maintains positive relationship

8. Signature Block: Sender's name, title, and signature

Optional Sections

1. Alternative Benefits: Include when there are other benefits or opportunities that can be offered in lieu of a salary increase

2. Performance Improvement Points: Include when the rejection is performance-based and specific improvements are needed for future consideration

3. Appeal Process: Include when company policy allows for formal appeals of salary decisions

4. Development Plan Reference: Include when there is a specific development or training plan that could lead to future salary increases

Suggested Schedules

1. Performance Metrics Summary: Optional attachment showing relevant performance data if the decision was performance-based

2. Salary Review Policy: Optional attachment of company policy regarding salary reviews and increases

3. Development Plan: Optional attachment detailing specific steps or goals for future salary consideration

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions














Clauses














Relevant Industries

Technology

Manufacturing

Retail

Healthcare

Education

Financial Services

Professional Services

Construction

Hospitality

Public Sector

Non-Profit

Media and Entertainment

Telecommunications

Transportation and Logistics

Relevant Teams

Human Resources

People and Culture

Management

Operations

Finance

Legal

Compensation and Benefits

Relevant Roles

HR Director

HR Manager

Human Resources Business Partner

Department Manager

Line Manager

General Manager

Operations Manager

Chief Human Resources Officer

People and Culture Manager

Compensation and Benefits Manager

Regional Manager

Branch Manager

Business Unit Head

Managing Director

Industries





Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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