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Salary Increase Rejection Letter Template for South Africa

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Key Requirements PROMPT example:

Salary Increase Rejection Letter

"I need a Salary Increase Rejection Letter for a mid-level software developer who hasn't met their key performance indicators in the past two quarters, with a potential for review in March 2025 if performance improves."

Document background
The Salary Increase Rejection Letter serves as an essential document in South African employment relationships when an organization needs to formally decline an employee's request for a salary increase. This document must comply with South African labor law, particularly the Basic Conditions of Employment Act and Labour Relations Act, while maintaining professional standards and clear communication. It is typically used when an employee has formally requested a salary increase, but the organization cannot accommodate the request due to various factors such as business conditions, performance issues, or budgetary constraints. The letter should include the decision, detailed reasoning, and any relevant future considerations, while ensuring the communication remains professional and constructive. The document plays a crucial role in maintaining transparent communication and documenting employment-related decisions.
Suggested Sections

1. Letter Header: Company letterhead, date, reference number, and formal business letter formatting

2. Recipient Details: Employee's full name, position, employee ID, and department

3. Subject Line: Clear indication of the letter's purpose regarding salary review request

4. Acknowledgment: Recognition of the salary increase request and when it was received

5. Decision Statement: Clear and direct communication of the rejection decision

6. Explanation: Specific reasons for the rejection, such as business conditions, performance metrics, or budget constraints

7. Closing Statement: Professional conclusion with appropriate next steps or future considerations

8. Signature Block: Formal signature section with name and title of the authorized person

Optional Sections

1. Performance Review Summary: Include when the rejection is related to performance issues, summarizing key performance metrics or areas for improvement

2. Future Review Date: Include when offering a specific timeline for the next salary review opportunity

3. Alternative Benefits: Include when offering other forms of recognition or benefits in lieu of a salary increase

4. Development Plan Reference: Include when linking the decision to specific development or improvement goals

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

Suggested Schedules

1. Performance Metrics Summary: Detailed breakdown of performance evaluations if referenced in the main letter

2. Salary Review Policy: Company policy regarding salary reviews and increases if referenced in the main letter

3. Development Plan: Specific action items and goals for performance improvement if referenced in the main letter

Authors

Alex Denne

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

Relevant legal definitions















Clauses











Relevant Industries

Financial Services

Technology

Manufacturing

Retail

Healthcare

Education

Mining

Construction

Professional Services

Telecommunications

Public Sector

Agriculture

Hospitality

Transport and Logistics

Energy

Relevant Teams

Human Resources

Management

Operations

Finance

Administration

Legal

Compensation and Benefits

Relevant Roles

Human Resources Manager

HR Director

Department Manager

Line Manager

CEO

Managing Director

HR Business Partner

HR Administrator

Operations Manager

Finance Manager

General Manager

Regional Manager

Branch Manager

Compensation and Benefits Manager

HR Specialist

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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