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If an employee has been with the company for the last3 years and has never received any increase since he/she started working, is it reasonable now to give her an increase even tho the economic trend is declining?
It all depends on what is the economic environment of the company concerned, global economic condition has nothing to do in giving increment or not as long as company is prosperous. It may so happen that when there is global economic slump some companies will continue to prosper and earn profit, and even when the global economic condition is good some other companies will suffer losses and may have to control costs.
It depends on your company. If your company is being affected by the economic recession, and they laid off workers, then the other employees may received an increment on their salary. When they laid off workers, they tend to save some amount of money and that money saved will be used to increase the current compensation of the existing workers.