Free policy template · Word

Promotion Policy

A promotion policy sets the criteria and process for moving an employee to a higher grade or role — minimum time in grade, performance ratings, readiness assessment, panel review, effective date and salary revision. It gives employees a clear path upward and protects the company against favouritism claims.

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[Company Logo][Company Name]

PROMOTION POLICY

Policy No.:: [Reference Number]
Version:: [Version Number]
Effective Date:: [Date]
Policy Owner:: Human Resources

1. Purpose

This policy provides a transparent, merit-based framework for promotions at [Company Name], so that capable employees can grow and leadership roles are filled from within wherever possible.

2. Scope

It applies to all confirmed employees in grades [Grade] to [Grade]. Appointments to the leadership team are decided by [Authorised Signatory].

3. Definitions

Promotion: movement to a higher grade with greater responsibility.
Vacancy-based promotion: selection of an internal candidate for an open higher role.
In-role promotion: grade progression in the same function when the employee consistently performs at the next level.
Time in grade: continuous service in the current grade.

4. Policy

Employees are eligible if they meet the minimum time in grade and rating criteria below and have no active written warning.
Open higher roles are posted internally for [Number] days before external hiring, unless confidentiality requires otherwise.
Promotion is based on performance, demonstrated competencies for the next level, and business need.
On promotion, salary is revised as per the Salary Administration Policy.
Promoted employees serve a role probation of [Number] months; if expectations are not met after feedback and support, the employee may revert to the previous role and pay.
Promotions are effective from [Date] in the annual cycle, or from the date of appointment for vacancy-based promotions.

Current Grade	Next Grade	Minimum Time in Grade	Rating Required
[Grade]	[Grade]	[Number] years	[Rating] in last [Number] cycles
[Grade]	[Grade]	[Number] years	[Rating] in last [Number] cycles
[Grade]	[Grade]	[Number] years	[Rating] in last [Number] cycles

5. Procedure

Manager nominates the employee with a justification note and evidence of next-level work.
HR verifies eligibility.
A panel of the skip-level manager, an HR representative and [another senior leader] interviews or reviews the candidate.
The panel recommends; [Authorised Signatory] approves.
HR issues a promotion letter stating the new designation, grade, CTC and effective date.
Unsuccessful nominees receive feedback within [Number] days.

6. Responsibilities

Managers: identify and develop talent, nominate fairly.
Panel: assess objectively and record reasons.
HR: ensure consistency and equity, maintain records.
Employees: discuss career goals and build next-level skills.

7. Non-compliance

Promotions announced without following this policy will not be processed. Any attempt to influence the panel improperly will be treated as misconduct.

8. Review & Approval

HR will review the criteria annually after the promotion cycle.

Prepared by
[HR Name]
Human Resources

Approved by
[Authorised Signatory]
[Designation]
Date: [Date]

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What this template includes

Two promotion routes — vacancy-based and in-role (grade progression)
Eligibility criteria — minimum [Number] years in grade and recent ratings
Readiness assessment — competencies for the next level, not just current results
Promotion panel — at least two reviewers beyond the direct manager
Salary revision on promotion — minimum hike or new band minimum
Probation in the new role — option to revert if the role is not a fit

When to use it

Employees ask what they need to do to get promoted
Promotions have so far depended only on a manager's recommendation
Running an annual promotion cycle linked to appraisals
Filling a senior vacancy through internal candidates first

How to customise this template

1Fill the eligibility table for each grade
2Decide the promotion cycle dates (annual or twice a year)
3Name panel composition for each level
4Insert the promotion hike rule from your salary policy
5Decide whether disciplinary action in the last [Number] months blocks promotion

HR tips

Promote for future-role readiness, not only for tenure
Give unsuccessful candidates specific feedback and a development plan
Track promotion rates by gender and team to spot bias
Announce promotions in writing with the new designation and effective date

Promotion criteria must be applied consistently and without discrimination. Review this template with your standing orders and any settlement terms, and seek legal advice for unionised or regulated establishments.

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Frequently asked questions

What is the minimum time for promotion?+

There is no legal minimum; companies typically set a minimum time in grade such as one to three years depending on level. Exceptional performers may be considered earlier with approval.

Is a salary increase compulsory on promotion?+

Not by law, but almost all companies give an increase and many guarantee at least the minimum of the new pay band. State the rule in the policy.

Can a promoted employee be reverted?+

If the promotion letter places the employee on probation in the new role, the company can revert them to the earlier role if expectations are not met, following a fair review. This must be stated in writing at the time of promotion.

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Document No.:
[Reference Number]
Version:
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Effective Date:
[Date]
Policy Owner:
[HR Name], Human Resources
Approved By:
[Authorised Signatory]
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1.3 Precedence: Where this manual conflicts with any law, certified standing order or individual appointment letter, the law and then the more favourable term for the employee will apply.
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