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Dear,
If the employee is not getting the annual salary increase even the comapny performance is doing well, and the other employees are getting salary increases, this is in my opinion not legal or even not ethical practice.
FOr sure, the law performance employee is not eligible for the salary increase, in in the way that the comany in some countires have thee right to terminate the employee for the reason of law performance.
In real life if this happens, this is a very direct massage to leave the company, other wise, you are wasting your time, which is more valuable.
Regrds