Letter Confirming A Pay Freeze

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Letter confirming a pay freeze

[Insert name]

[Insert address]

[Insert date]

Dear [insert name],

The Company undertakes a review of employee salary and benefits each


[delete as appropriate – year/6 months], and I am writing to confirm that
a review has recently taken place.

Unfortunately, there will be no salary increases as a result of this review.


This is because the Company has decided to implement a pay freeze at
this time.

We wish to reassure you that the Company greatly appreciate the


contribution of all of its employees and places great value on the hard
work and commitment shown by all of you to maintain the Company’s
market position. Of course we understand that salary increases are seen
as indicative of appreciation for hard work and we would like to be in a
position to recognise your contributions in this way. However, at this
time we are unable to because [insert reason(s)].

[Select from the paragraphs below and delete as appropriate]

Pay will continue to be reviewed for employees are who successfully


promoted to a more senior position in the Company.

[OR]

Despite this pay freeze, employees who are successfully promoted to a


more senior role in the Company will continue to receive a salary
increase in accordance with the seniority of the new role.

[OR]

This pay freeze will also apply to employees who are successfully
promoted to a more senior role. However, the Company will agree
individually with employees a future date for a salary review in
connection with the promotion.

[Select from the paragraphs below and delete as appropriate]


The Company has decided to apply this pay freeze until [insert month]. At
that point, the position will be reviewed again, however, we must make
you aware that a review does not mean that salary increases will occur.

[OR]

The Company is unable to confirm the date of the next salary review but
will keep you informed in this regard.

We understand that this will be disappointing news and we regret that


this situation has occurred. It was not a decision that we came to lightly
but was made after careful consideration of all relevant information. We
are hopeful that the situation will improve soon.

Please do not hesitate to contact [insert name, job title and contact
details] if you have any questions relating to this matter.

Yours sincerely,

[Insert name]
[Insert job title]

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