Dear Seniors,
Recently I have come across a case in which Company has hired a person with 8 years of Experience on Stipend, Giving Him salary of 3 lacs p.a., and placed in the Grading system of the company is Grade 4.( mentioned in Appointment letter)
He has also got Appointment letter with probation of 12 months which he received only after his joining.
However he is not allowed to avail any leave since he is on Stipend and treated as Trainee.
person seeks our help. Kindly enlighten me.
Is it legal?
On what basis he can speak to his company?
Looking for your contribution and guidance.
Regards
ATM
HR Professional
From India, Kanpur
Recently I have come across a case in which Company has hired a person with 8 years of Experience on Stipend, Giving Him salary of 3 lacs p.a., and placed in the Grading system of the company is Grade 4.( mentioned in Appointment letter)
He has also got Appointment letter with probation of 12 months which he received only after his joining.
However he is not allowed to avail any leave since he is on Stipend and treated as Trainee.
person seeks our help. Kindly enlighten me.
Is it legal?
On what basis he can speak to his company?
Looking for your contribution and guidance.
Regards
ATM
HR Professional
From India, Kanpur
Dear anonymous friend,
You have not given the essential details regarding his nature of job i.e whether independent or getting trained under some one else and the length of the period of his training, whether the so called training is just a prelude to the job or post for which he was appointed and whether the stipend fixed for the training is to be continued as such or converted at least for name-sake as salary during the entire period of probation. Now a days in the name of flexible employment, all methods of instantaneous hiring and ignominious firing are adopted by certain modern employers to circumvent established ethical conventions and inescapable legal compliance. It is more on the increase in respect of employees for whom the protection of Labour Laws are not available. Therefore, it is for the prospective employees to be beware of such alluring offers of dubious employments. With his eyes and mind widely open, he has accepted the employment as a trainee even though having a pretty experience of 8 years means he is believed to be well aware of the positive and negative aspects of such an employment.So, no one can help him now.
From India, Salem
6016You have not given the essential details regarding his nature of job i.e whether independent or getting trained under some one else and the length of the period of his training, whether the so called training is just a prelude to the job or post for which he was appointed and whether the stipend fixed for the training is to be continued as such or converted at least for name-sake as salary during the entire period of probation. Now a days in the name of flexible employment, all methods of instantaneous hiring and ignominious firing are adopted by certain modern employers to circumvent established ethical conventions and inescapable legal compliance. It is more on the increase in respect of employees for whom the protection of Labour Laws are not available. Therefore, it is for the prospective employees to be beware of such alluring offers of dubious employments. With his eyes and mind widely open, he has accepted the employment as a trainee even though having a pretty experience of 8 years means he is believed to be well aware of the positive and negative aspects of such an employment.So, no one can help him now.
From India, Salem
Dear Sir( Umakanthan.M),
Thanks for the details. There is not training period clause in the appoitnment letter. Only probation of 6 months.
Sir as an HR Personal I seek your help to understand that whether we can use the word "Stipend" for salary given to a "manager" ?
Regards
ATM
From India, Kanpur
Thanks for the details. There is not training period clause in the appoitnment letter. Only probation of 6 months.
Sir as an HR Personal I seek your help to understand that whether we can use the word "Stipend" for salary given to a "manager" ?
Regards
ATM
From India, Kanpur
Dear Ankita,
Literally the word " STIPEND" means a fixed periodical payment for the services rendered or to defray expenses relating to the services rendered. When one is appointed as manager and placed on probation just to enable the employer to ascertain his suitability both for the job of manager and the organization, the entire work of a regular hand is extracted from him while assesment is simultaneously made on his performance and professional conduct befitting the cadre in which he is appointed as a probationer. Then, how can we equate the remuneration paid to him for a manager's job to that of "stipend" normally paid to a learner or apprentice being trained on a particular trade or a priest performing certain rites and rituals the knowlege of which is possessed by him only? So far, I have not come across any service rule distinctly distinguishing the remuneration paid to a probationer from the salary payable to a confirmed incumbent on the same post. To me, therefore, stipend is a misnomer for the salary paid to a probationer and will certainly lead to certain complications such as contribution to PF etc.
From India, Salem
Literally the word " STIPEND" means a fixed periodical payment for the services rendered or to defray expenses relating to the services rendered. When one is appointed as manager and placed on probation just to enable the employer to ascertain his suitability both for the job of manager and the organization, the entire work of a regular hand is extracted from him while assesment is simultaneously made on his performance and professional conduct befitting the cadre in which he is appointed as a probationer. Then, how can we equate the remuneration paid to him for a manager's job to that of "stipend" normally paid to a learner or apprentice being trained on a particular trade or a priest performing certain rites and rituals the knowlege of which is possessed by him only? So far, I have not come across any service rule distinctly distinguishing the remuneration paid to a probationer from the salary payable to a confirmed incumbent on the same post. To me, therefore, stipend is a misnomer for the salary paid to a probationer and will certainly lead to certain complications such as contribution to PF etc.
From India, Salem
The Company is hiring an employee for their requirement as per suitability of the person.
If the company thinks that he requires some time to pickup the work in their company as per
their policy, they will see that person as Learner for some period though he may be having experience in other companies.
In that context, they may give stipend for some period by appointing him in any cadre. Manager is a cadre of the company. Therefore no wrong in their appointment.
From India, Hyderabad
If the company thinks that he requires some time to pickup the work in their company as per
their policy, they will see that person as Learner for some period though he may be having experience in other companies.
In that context, they may give stipend for some period by appointing him in any cadre. Manager is a cadre of the company. Therefore no wrong in their appointment.
From India, Hyderabad
There is a notion that the so called ' Co policy' will overrule laws and ethics.The above appointment is to circumvent the laws to show that he is not employed for 'salary ' but for stipend.
Varghese Mathew
From India, Thiruvananthapuram
Varghese Mathew
From India, Thiruvananthapuram
I fully agree with Mr. Umakanthan and hats off to him for his explicit explanation. I only wonder, why the Manager has accepted such a role with a stipend with 8 years experience. Having accepted it, and perhaps joined also, he cannot make enquiries now.. This, he should have done before accepting the job !
From India
From India
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