Pay · HR glossary

Red-Circling

Red-circling usually means protecting or identifying an employee's pay when it sits above the maximum of the assigned range. Treatment depends on the employer's policy and applicable rights.

Example

After a pay-structure change, an employee's salary exceeds the new range and is maintained under a documented arrangement while future increases are reviewed.

What to keep in mind

The term does not automatically authorise a pay freeze or reduction. Explain the reason, duration and review approach, and check contractual and equal-pay implications before changing treatment.

Further reading

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