Dinesh Divekar
Business Mentor, Consultant And Trainer
Korgaonkar K A
[email protected]
Consultant In Legal Matters
Talent Acquisition Expert
Assistant Manager - Sales
+8 Others

Hello all,
we are start up company . we hire employees with attitude and train them for skills . we have plans not to pay salary for three months .
we also planned to take the trainings fees from the candiates for 3months.
should we mention the terms clearly in offer .we will only offer stipend for 6 months after client confirmation regularly salary starts.
please provide your suggestions on this how to clearify it

From India, Bangalore
Venkatesh.Bab: You can do that, but you will only get people that are desperate to take up jobs and then quit when they have another offer in hand.
From India, Mumbai
Dear Venkatesh,
This is in addition to what talentsorcerer has said. I do not know what is the strength of your company however, call it salary or stipend or any other name, PF ESI are applicable. Statutory provisions are applicable provided you have registered for that. Secondly, right from first day onwards, employer-employee relationship starts. Thirdly, you need to concentrate on the quality of the candidates also. Will you be able to grow your business with low-quality manpower?
The trouble with the start up companies is that they may not attract quality candidates. This is because everybody wants to join branded companies. It is brand of the company that adds value in the CV of the candidate. This is going to be a perennial challenge till you establish yourself.
Dinesh Divekar

From India, Bangalore
I would suggest that you are wasting your time and energy.

If you are not going to pay your staff, then why are you bothering to start a business.

No-one works for nothing. Last time I looked, the people of India have the same needs as people in other countries. They need to EARN MONEY, to pay for food, and a roof over their head. How do they support their families, and make a contribution to society, if they work, sorry I think the right word is - SLAVE - for you.

It would appear that you do not have the capital in hand to start this business, and to cover all its costs. Labour is one of the biggest costs of any business, and you need to work out how you are going to manage that. I would suggest that you and your partners run the business yourselves, until you are in a position to employ and PAY additional staff.

Additionally, if you have no capital, how are you going to establish this business, eg, rent and furnish an office, IT expenses, telephone, and most importantly marketing and advertising to get your name known, and bring in paying business.

Have you considered any of this??

I despair sometimes at the things I read here on CiteHR about the way employers treat their staff.

From Australia, Melbourne
Dear Venkatesh.Bab,
Here I differ with the view of our learned member Talentsorecrer.
You are not an institution to hire the people and charge fee from them. You are an entrepreneur. You can not hire the people for no compensation and over & above collect money from them for providing job / training to them. Mind well, they are not slaves. Also mind well, if you do so, you are liable legally.
I am sorry for little harsh wording.

From India, Mumbai
@Venkatesh.Bab - This practice is there in the market and works well in areas where there is desperation for job. However, as some members already suggested, this yields less qualified team and attrition will be there big time. Don't forget you can suck up people only till someone comes up for you. If you make a team instead, they will back you in good and bad. Trust me on that, I know from personal experience.
@GOPALNANDA20042001 - Sir I believe you should create a new thread and ask the question there.

From India, Mumbai
I endorse the opinion furnished by KORGAONKAR K A. On the pretext of giving employment extorting from employees is outright perverse both legally and ethically.
From India, Bangalore
Continue for previous message.
We Have No Plays To Pay Salary For first Three Months .Should we clearly mention it in the Offer and also training expenses amount in the offer explaining the below terms as well.
We have Planned To Take The Trainings expenses for Industrial experts For The Candiates in the first 3months and no stipend during that period.
We Will Only Offer Stipend For 6 Months After Client Confirmation Regularly Salary Starts.

From India, Bangalore
Dear Venkatesh.Bab,
I again state that you are not an institute to give training. You are governed by labour laws. You are governed by Minimum Wage Act, Payment of Wages Act. You can not get the work done by trainees.

From India, Mumbai
Please tell me if I understand this correctly:
1. You want people to come and work for you for at least 3 months in an UNSPECIFIED job, and NOT PAY them.
2. You are going to train these people in some UNSPECIFIED skills, and then MAKE THEM PAY FOR THAT TRAINING, even though they will be earning NO MONEY.
3. This UNSPECIFIED job will only last 6 months, so they will work for nothing for 3 months, and get some UNSPECIFIED salary for 3 months.
Is this correct??
Who would be stupid enough to take up an offer such as this?
While you take money from the business, keep a roof over your head, feed and clothe your family, enjoy holidays and leisure activities, and drive around in your BMW car, your UNPAID slaves do the work for you.
How does this work??
I thought that in 2015, the world had moved on from this 19th century thinking.
The whole idea is incomprehensible, and as others have pointed out, bordering on immoral and illegal.

From Australia, Melbourne

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