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A promotion letter records an employee's move to a higher role or grade. This promotion letter format covers the new designation, reporting line, pay and effective date.
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It follows approval of the promotion under your promotion policy, either in a promotion cycle or mid-year when a position opens. HR drafts it after the approving authority signs off, and an authorised signatory issues it. The reporting manager usually hands it over in person.
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An increment only changes pay. A promotion changes the job: title, grade, scope and often the notice period and approval limits. If the promotion carries a raise, put the revised pay in this letter so there is one source of truth.
Watch for itIf the notice period changes with the new grade, say so explicitly. Employees who resign later often dispute a longer notice period that was never written down.
Replace everything in [square brackets]. Have your own legal or HR adviser review the final wording for your organisation.
[COMPANY NAME] [Office address] | [Phone] | [Email] PRIVATE AND CONFIDENTIAL Ref: [HR/PROM/YYYY/NNN] Date: [DD Month YYYY] [Employee full name] Employee code: [Code] Current designation: [Designation] Department: [Department] Subject: Promotion to [New designation] Dear [Employee first name], We are pleased to inform you that, in recognition of your performance and contribution, you have been promoted to the position of [New designation] in [New grade/band] with effect from [Effective date]. 1. Reporting: In your new role you will report to [Manager name, Designation] [and lead the [Team name] team]. 2. Responsibilities: Your key responsibilities will be as set out in the enclosed role description. 3. Compensation: Your revised annual cost to company will be Rs. [Amount] with effect from [Effective date], as detailed in the enclosed annexure. [OR: Your compensation will be revised in the [Month YYYY] revision cycle.] 4. Notice period: With effect from [Effective date], your notice period will be [N] days/months, as per the company's notice period policy for your grade. [Delete if unchanged.] 5. [Review: Your performance in the new role will be reviewed after [N] months, as per the company's promotion policy.] [Delete if not applicable.] All other terms and conditions of your employment remain unchanged. Congratulations on your promotion. We look forward to your continued contribution in your new role. Yours sincerely, For [COMPANY NAME] [Authorised Signatory] [Designation] Enclosures: Role description; Revised salary break-up Acknowledged: Signature: ____________________ Name: [Employee full name] Date: [DD Month YYYY]
Yes, though it is uncommon and should be stated plainly in the letter, with the date pay will be reviewed if that is planned.
Not normally. Some policies attach a review period to the new role; if yours does, say so and say what happens if the review is not satisfactory.
Yes, an acknowledged copy is useful, especially when the notice period or reporting line changes.
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