Dear All,
Please clarify with proofs whether stipends (As per the offer letter) paid to management trainees should be the minimum guaranteed pay while fixing salary after probation???
For Eg: A management trainee is paid INR 10000/month as stipend for first 6 months of probation. Soon after the probation while fixing slary for them, the pay should be more than the stipend 10000 right?? (i.e)
salary = INR 10000 + . /month..
RESPONSES WITH ENCLOSURES IS HIGHLY APPRECIATED..

From India, Hyderabad
Hi
As far as I know the issue of stipend is related with apprentice,and apprentice act is applicable to those who are in Non supervisory Classes of employees.You are saying that you are management Trainee under probation so Issue seems to be related to company and its policies related to such training and probation.Would like to know More Comments here.
Thanks
Bijay

From India, Vadodara
Dear Dhivya Iyer,
The probation period of Management trainees is to assess the competency of the candidates. We fix some amount as stipend to enable him to meet some expenses for his living. After the successful training period or probation period, if he is selected he has to be put in the scale as per established practice in the organisation or a suitable scale to his/her cadre. Off course, the pay must be more than the stipend amount. Once the probationers services are confirmed, he is eligible for all the benefits as applicable to confirmed employees of his cadre.
The benefits, pay scale etc., vary from industry to industry and it all depends on the letter of offer/appointment letter.
Hope this clarifies your doubt on the subject.
G.K.Manjunath
Sr Manager-HR

From India, Bangalore
It is not mandatory that on confirmation an employee should be given a salary hike. In the case of trainees, once he completes his normal course of training, he will get a different status, like from trainee to an employee or from a probationer to a confirmed employee and thereafter the service conditions as applicable to that category of employees would be applicable to him also. That change in status itself is the 'hike'.

In the case of an experienced person joining a new company also there will be a probation clause. This is because we do not know how the new comer will perform in our atmosphere irrespective of his previous experiences. Therefore, in such cases during the final 'bargain' it will be mutually agreed that 'if the performance is found to be upto the mark, you will be given a certain sum as salary as agreed' and in such scenario once his probation period (prefixed) is over and his performance is found to be good and acceptable, we will grant that agreed hike. In all other cases, an increment is usually given after at least 12 months of working.

Regards,

Madhu.T.K

From India, Kannur
It entirely depends upon the terms and conditions of engagement e.g. I worked in a leading PSU in Delhi.I was inintially put on probation for a period of six-months on condition that subject to satisfactory performance,I would be confirmed with all service benefits.However, pay-scale was given to me from the very date of joining and except CL, I was not entitled to any other kind of leave.After confirmation,I was given all the benefits.I joined that organisation as a Company Secretary.At the the time of confirmation, I was not given any increment and the first increment was given to me after completion of one year from the date of joining.In the same organisation, frequently certain management trainees are recruited and till confirmation, they are given some stipends.After confirmation, they are given pay-scale.So, there is no hard and fast rule in this regard and it depends on the discretion of the Management as well as level of post.
From India, Delhi
Dear All.

Thanks for your comments and clarifications. Pls read through this entire scenario and your words are highly appreciated!!

I work for a leading facility management company as a management trainee - HR(CAMPUS PLACEMENT) for the past 6 months. And I have been offered with an offer letter stating that my stipend would be Rs. 20,000/month and on successful completion of probation, I shall be regularized under the rolls as applicable to my category. As a word of confirmation the senior manager had promised a hike after my probation. Unfortunately the senior manager cum recruiter is not with the company now. Now the management has come up with the decision of making the stipend amount (rs 20000) itself as CTC, which means the take home would be 14000 in hand.. After having worked and having proved my mettle I'm very disappointed with the management's decision. There are 6 more trainees with me in other departments who are sailing in the same boat with me. We have come only for the sake of our career and Still we are with the company hoping things would change. Could you please help us to explain our position to the management with supporting documents. PLease help me with any act/rule/amendment which says the stipend amount should atleast be the minimum guarantee take home rather than having it reduced by rs 6000 all of a sudden,

From India, Hyderabad
Stipend in this case is just a name given to the remuneration for the work performed and it is nothing but salary. Stipend other than one paid to an apprentice either engaged following Apprentice Act or as per Standing Orders of the company are simply wages or salaries for all purposes. Therefore, if Rs 20000 is taken as gross amount and it is subject to statutory deductions like PF, ESI or other, we have no other say. There cannot be any bifurcation to stipend like, Basic, HRA, Conveyance, Performance pay etc. Hope in your case the stipend has a bifurcated structure and if so, the word stipend itself is wrong in Personnel Management perspective. Yet, many companies follow this practice knowingly or unknowingly and deter the rights of employees.
Madhu.T.K

From India, Kannur
Dear Madhu,
In this scenario the word " stipend" is what is evident in our offer letters. And the hike was a verbal promise. By making 20000 as monthly ctc, the company is hereby breaking the promise they had given us initially. pls suggest us a way of makingg this work.

From India, Hyderabad
If you really feel that the management has done injustice to you, you can take it up as an industrial dispute before the competent authority. But I must say that since you have just started your career and is undergoing training, take it in corporate spirit. If you put it as grievance (which has no relevance in Corporate world!!) you will be noted and going forward each and every action by you will be carefully watched. If you raise it as an industrial dispute, you should prove that what was the understanding while you were hired and unless you prove it you will not win it because the Court will rely on evidences only and in the absence of it the generally accepted norm of granting an increment after one year will be maintained. If you are defeated, your existence in the establishment itself will be questioned. The company can even manipulate the records and show that you are not a good performer and if so the question of hike will never arise also. I don't think that an employee (that also a fresher) will be able to prove that he has been doing a good job. Therefore, think and act.

Regards,

Madhu.T.K

From India, Kannur
Dear Ms Madhu,
I/We have absolutely no plans of abusing the company or filing a grievance against it. We are freshers who are totally helpless here. I actually wanted to know if there are some acts or clauses that justifies "stipend should be the minimum guaranteed pay". I was seeking help only to find out a way to prove ourselves.
Regards
Dhivya Iyer

From India, Hyderabad






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