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Salary Increase Rejection Letter Template for Germany

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Key Requirements PROMPT example:

Salary Increase Rejection Letter

"I need a Salary Increase Rejection Letter for an IT developer who has been with us for 2 years, citing company-wide budget freeze until June 2025 as the reason, while maintaining a positive tone and suggesting a performance review in Q3 2025."

Document background
The Salary Increase Rejection Letter is a crucial document in German employment relations that requires careful handling to maintain compliance with local labor laws while preserving positive workplace relationships. It is typically used when an organization needs to formally respond to an employee's salary increase request with a negative decision. The document should be drafted in accordance with German employment legislation, including the BGB and AGG, ensuring non-discriminatory practices and transparent communication. It should include the decision, clear reasoning, and where appropriate, future perspectives or development opportunities. The timing and manner of delivery should consider works council rights (if applicable) and proper documentation for HR records.
Suggested Sections

1. Letter Header: Company letterhead, date, recipient's details, and reference line

2. Opening Acknowledgment: Acknowledgment of the salary increase request and when it was received

3. Decision Statement: Clear and direct statement of the rejection decision

4. Explanation: Brief explanation of the reasons for the rejection, focusing on objective factors

5. Appreciation Statement: Expression of gratitude for the employee's contributions and commitment

6. Closing: Professional closing statement with contact information for further questions

7. Signature Block: Signature of the authorized representative (usually HR manager or direct supervisor)

Optional Sections

1. Future Review Date: Include when you want to specify the next planned salary review date

2. Development Plan: Include when offering specific steps or goals for future salary consideration

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

4. Performance Feedback: Include when the rejection is performance-related and specific feedback would be constructive

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

Suggested Schedules

1. Current Salary Statement: Optional attachment showing current salary details and any recent changes

2. Performance Metrics: Optional attachment with relevant performance indicators if referenced in the letter

3. Development Plan Document: Detailed outline of suggested improvements or career development steps, if referenced in the letter

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 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

Banking and Finance

Technology

Manufacturing

Retail

Healthcare

Professional Services

Education

Telecommunications

Construction

Automotive

Energy

Media and Entertainment

Logistics and Transportation

Public Sector

Hospitality

Relevant Teams

Human Resources

Legal

Finance

Operations

Compensation and Benefits

Employee Relations

Personnel Administration

Relevant Roles

HR Director

HR Manager

Compensation and Benefits Manager

Department Director

Line Manager

Legal Counsel

HR Business Partner

Personnel Administrator

Hiring Manager

Operations Manager

Chief Financial Officer

HR Administrator

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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