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Last revision: 27/11/2023
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A Pay Rise Letter can be used by an employer that wants to give a pay rise to an employee.
It can be used by an employer, either to offer a pay rise (when the matter has not previously been discussed with the employee), or to provide written confirmation of the pay rise (after having already discussed the matter with the employee).
When an employer is providing a pay rise to an employee, it is a great opportunity to remind the employee of how much they are appreciated. A well written letter, acknowledging the employee's service to the organisation, thanking them for their contribution, and confirming or offering the pay rise, can boost the employee's morale, and can ensure an ongoing positive employment relationship.
This letter also serves as a valuable point of reference, which can be kept on file by both the employer and the employee, together with the Employment Agreement.
We have several other letters available which serve different purposes in relation to employee salaries and wages. If the employee has not been offered a pay rise yet, but wants to request one from the employer, they may use our Raise Request Letter. If the parties are not dealing with a pay rise, but rather want to confirm the employee's current salary (for example, so that the employee can apply for a loan or a rental property), the parties can use our Salary Verification Letter.
How to use this document
This letter includes basic information such as the details of the employer and the employee. It also includes details about the pay rise, such as the new amount which the employee will be paid, and the date when the pay rise will come into effect. Details about the employee's Employment Agreement can also be included, to make it clear that this pay rise is a variation to the terms of that Employment Agreement.
The letter may be used to offer a pay rise (when the matter has not previously been discussed with the employee), or to provide written confirmation of the pay rise, (after having already discussed the matter with the employee). If it is offering a pay rise to the employee, then the employer also has several options for asking the employee to confirm that they accept the offer.
Once the letter has been prepared, it may be printed and signed by the employer, then sent to the employee (either by email or in hard copy). If the employer is asking the employee to sign a copy of the letter in order to accept the pay rise, then the employer may provide two copies of the letter to the employee (so that the employee can keep one copy, and can sign the other copy and return it to the employer).
Both parties can then keep a final signed copy of the letter, together with the Employment Agreement, for future reference.
A pay rise constitutes a variation to the Employment Agreement. General principles of contract law, as provided by the common law, will apply to any Employment Agreement.
The Fair Work Act 2009 (Cth) and the National Employment Standards apply to most employment situations in Australia.
However, in addition, many employment situations are also governed by modern awards or enterprise agreements.
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