I am working as a software engineer with a 2 year agreement. HR said that I would get a salary increment after 1 year of the joining date, but I didn't get any salary increment. HR said after the financial period only we will start the increment process.

So i waited another 3 months. When the financial period came, the company still did not give the increment. Again I asked HR. They said company is in loss so the company is not ready to give increments for anyone.

So still I am at the same salary and still I have 8 months remaining in the agreement.

I want to relieve from the company (quit), but management said you are still in an agreement, so they are not relieving me and not giving increment.

My family is in need of money.

What shall I do next? Can anyone provide me some suggestions?

  • 3
    Hello @Swamynadhan, Welcome to The Workplace. There is a huge difference between HR said and HR agreed in writing. IF you don't have the salary package described the agreement, you cannot prove anything. Many increment policies purely depend on Company Profit and sometimes your performance. So, I don't think HR assures a increment in writing.
    – Shaunak D
    Jul 11 '14 at 5:19
  • 2
    what does relive mean ? Just quit and get a different job. Jul 11 '14 at 9:00
  • Friend, There is no black mark on me. If have any black mark then they itself relive..... And in agreement they mentioned based on performance we will provide the increment thats it... I want o quit from the company.. Jul 11 '14 at 9:56
  • 5
    @ShaunakD ... And I complain about unethical practices and policies here in the US... That policy you could drag some unlucky sole into an impossibly shitty job and effectively they have to pay you to be allowed to leave... (I'm sure it's more complicated than that, but at face value any company that expected me to sign a term based contract there could go screw themselves) Jul 11 '14 at 15:52
  • 1
    I'm sure it's more complicated than that - It really is. Tough to explain all the conditions in the comments box. Worst thing is, people agree to such jobs and roam as mere puppets for years.
    – Shaunak D
    Jul 11 '14 at 15:55

What shall I do next! Can any one provide me some suggestion.

It sounds like your contract requires you to stay for another 8 months. Unless there is something written into your contract that guarantees you a raise, there's nothing left to be done.

Do the best you can until then. Be the best employee you can be.

At the end of the 8 months, discuss your desire for a raise, and be prepared to leave at that point if necessary.


At this point this is entirely a legal questions which shouldn't be answered here. You will need the help of a lawyer. However, since many lawyers are more interested in their fees than your well being, it's probably a good idea to do some homework before engaging one.

  1. Read you contract very carefully. Take notes while reading it. What exactly does it say about the length of your employment? What does it say about your payment? What does it say about your increase? Does it spell out exactly the timing and amount of increase? Are there any clauses that impact the other paragraph? Are there easy loopholes for the company, etc.?
  2. Network locally (internet, friends, colleagues, professional organizations, unions etc.) and try to find people that have had similar problems. Did they engage a lawyer? Did it help? How much did it cost? Can they recommend a lawyer?
  3. Figure out exactly what you want, what you are willing to settle for and how much money you are prepared to spend on it. Is it okay for you to spend $1000 to get the relieving letter or would it be better to just slug it out?
  4. If you still feel, a lawyer is a good idea, go and talk to one. Make sure you have a written list of questions: How does the lawyer get paid? What does he/she expect the whole thing to cost? What happens if the cost runs way over? What's the chance of success? Has he/she done similar cases? What happened in those cases?
  5. If the first consultation is free, than talk to 2 or 3 different lawyers and check whether the answers to your questions match up or are wildly different. Pick the one that makes you most comfortable.
  • 1
    #5 is possibly the single best advice when dealing with lawyers who offer free consultations. There are good lawyers out there who will tell you exactly what to expect and if it's worth your time and total scumbags ready to bleed you over a hopeless case. Getting a second and third opinion is a great way to dodge getting taken for a VERY expensive ride. Jul 11 '14 at 15:42

There is an agreement for your 2 years of work, so you can't break that.

However, if it is also stated in the agreement that you should have been given a raise/salary increment after your first year, they should have given that.

If you want, you can ask legal advice there, although it might be counter productive as you would spend money there as well.

But if your supposed raise was just in saying, that's pretty hard to use as an argument.

  • Thanks for you response friend, let me check the agreement once again about the increment is mentioned in the agreement properly or not. Jul 11 '14 at 10:03

This sounds like you've been meeting your obligations up to this point (working) but they haven't been meeting their obligations (paying you and giving your salary increment at stated intervals.) This incremental increase was something written down, not just something stated verbally, correct?

If that is correct, I strongly advise you to talk to your local labor board, or a lawyer - someone or some group that can advise you what your options are, and how to go about getting the monies owed to you AND/OR avoiding a black mark on your employment history by breaking your contract ahead of time.

If you have signed a contract which allows the company to not give incremental increases if they are losing money that quarter/year, then there may be some information that they have to provide, to prove that they are losing money. I don't know all the details - but a lawyer will know. (You may want to make sure that you take any employment contract with you, so that they have a reference.)

  • If I go like that, then my career will get any problem? Did it will affect of my feature placement? because they have my original mark sheets with them for the 2 year of bond Jul 11 '14 at 10:01
  • Will you have career problems if you stand up against an employer who breaks a written contract that they signed? Possibly, possibly not. You may if you live in a tiny tiny town where there are no other employers than this one company, and you are unable to go live anywhere else with other employers. The question then becomes: which is worth more to you, sticking it out for the remaining 8 months of this contract and being a lot more careful the next time you sign an employment contract; or checking with a lawyer and, if you have legal grounds to do so, breaking this contract?
    – user22432
    Jul 11 '14 at 20:04
  • Thanks for your suggestion, at finally i plan to stay the same company upto the contract. Next time i will be very careful. Again thanks for your and you time friend. Jul 12 '14 at 8:56

The company is losing money you say? They're not giving pay increases to anyone? That's a reality of business sometimes. There are no guarantees.

I suggest you stay with the company (if you can afford to do so). I suggest you ask your supervisor this: "I am already giving up my pay increment to help return the company to profitable operation. Do you think there is any way I can do my job better to help the company make money? Is there anything our department can do to help the company make money?"

Your supervisor will probably say, "we need to keep doing our jobs with excellence." The point of this question is not to actually do things differently, but formally to express your concern for the company's welfare and offer to help.

Being in a company when it has business difficulties and being part of solving those difficulties is usually considered excellent experience and a sign of loyalty.

It's not fun, but if you can survive it you will learn a lot and gain respect.

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