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Free letter template · Word

Acting Promotion Letter

An acting promotion letter asks an employee to act in a higher, vacant post, for example while a manager is on long leave or until a permanent appointment is made. It is issued by HR on management approval and sets out the acting post, authority, acting allowance and what happens when the arrangement ends.

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Preview of the letter

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[Company Logo][Company Name]

ACTING PROMOTION LETTER

Ref. No.:
[Reference Number]
Date:
[Date]

To,
[Employee Name]
Employee ID: [Employee ID]
[Designation], [Department]
[Work Location]

Subject: Acting Charge of the Post of [Acting Post]

Dear [Employee Name],

Owing to [reason, e.g. the resignation of the incumbent / the extended leave of the incumbent], the post of [Acting Post] in the [Department] department is currently vacant. The management has decided to place you in acting charge of this post with effect from [Start Date] until [End Date] or until further orders, whichever is earlier.

Terms of the Acting Arrangement

  1. You will perform the duties and responsibilities of [Acting Post] and report to [Reporting Manager].
  2. You are authorised to [approve leave and attendance for the team / represent the department in management meetings] and to sign purchase orders up to [Amount]. Matters beyond this authority must be referred to [Reporting Manager].
  3. You will receive an acting allowance of [Amount] per month, or as per the company's acting allowance policy, for the duration of the arrangement. It will not form part of your basic salary for PF or gratuity unless the policy states otherwise.
  4. Your substantive designation remains [Designation]. On completion of the arrangement you will revert to your substantive post and the acting allowance will cease.
  5. This acting arrangement does not by itself confer any right to permanent promotion. Your performance will, however, be taken into account in future selection for the post.
  6. The arrangement will be reviewed on [Review Date].

We are confident you will handle this responsibility well. Please sign the duplicate copy of this letter to confirm your acceptance.

Yours sincerely,

For [Company Name]
[Authorised Signatory]
[Designation]
Accepted by
[Employee Name]
Date: [Date]

What this template includes

  • The vacant post and the reason for the acting arrangement
  • Start date and expected end or review date
  • Delegated authority and any limits on it
  • Acting allowance or pay difference, referenced as a placeholder
  • Reversion to the substantive post when the arrangement ends
  • Statement that acting does not guarantee permanent promotion

When to use it

  • A department head resigns and the role is open until a replacement joins
  • A manager goes on extended medical or maternity leave
  • A senior employee is deputed to another project for some months
  • The company wants to observe a high-potential employee in a bigger role before deciding

How to customise this template

  1. 1Name the post and the reason for the vacancy clearly
  2. 2Set out which approvals the acting employee can and cannot give
  3. 3Insert the acting allowance as per your policy rather than an ad hoc figure
  4. 4Fix a review date so the arrangement does not continue indefinitely

HR tips

  • Inform the team and stakeholders who is in acting charge
  • Do not let acting arrangements run on for long without review
  • Record the acting period in service records; it helps future promotion decisions
  • Give the acting employee fair consideration if the post is filled permanently

Acting arrangements should follow the company's service rules or standing orders; review the allowance and reversion terms against applicable labour laws and policy before issuing.

For HR & hiring managers

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Frequently asked questions

What is an acting promotion?+

It is a temporary arrangement where an employee performs the duties of a higher, vacant post, usually with an acting allowance, until the post is filled or the incumbent returns.

Does an acting promotion become permanent automatically?+

No. Unless the letter or policy says otherwise, the employee reverts to the substantive post when the acting arrangement ends.

Is an acting allowance mandatory?+

It depends on company policy, service rules or settlements. Many organisations pay an allowance or the pay difference for acting in a higher post for more than a set period.