In the offer letter sent to Geri, she was told that after one year on the job, she would receive a 15 percent increase in pay above whatever merit increase she earned based on performance. In other words, regardless of performance, she still would receive a 15 percent increase after one year. However, the company has had three very disappointing quarters financially. A memo was sent to all employees explaining that the company is under a “freeze” on all pay increases. Geri has brought her offer letter to you saying that it is a binding contract and she still should receive her 15 percent increase, regardless of the pay-increase freeze. As the HR manager, what should you do? Why?
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