Hi All, There is one query on the situation based. We had started the training batch for the 2022 year pass-out maxi for 3 months. This was totally performance based.
We had to exit some of the trainees since their performance was not good and it was promised to give stipend depending upon the number of their working days and we are doing that. But this is not the case with 2nd batch. The management team decided to give the stipend after the completion of 30 days only and it was made clear to them.
The candidate of the first batch has called to 2nd batch candidate and said him that if you will make pressure on HR, they will release his stipend amount.
What should we do now? We have to release the stipend with the first batch and if we want to deduct the amount in the name of training expenses, can we do that?
Kindly give your inputs.
From India, Delhi
12We had to exit some of the trainees since their performance was not good and it was promised to give stipend depending upon the number of their working days and we are doing that. But this is not the case with 2nd batch. The management team decided to give the stipend after the completion of 30 days only and it was made clear to them.
The candidate of the first batch has called to 2nd batch candidate and said him that if you will make pressure on HR, they will release his stipend amount.
What should we do now? We have to release the stipend with the first batch and if we want to deduct the amount in the name of training expenses, can we do that?
Kindly give your inputs.
From India, Delhi
The general rule is that you must pay people for the number of days they have worked.
This applies both under Payment of Wages Act (for employees) and under Standing Orders (for employees and trainees) and under Apprentice Regulations. Please remember that they may be employees even if you call them trainees. the amount payable may be a salary / wage even if you call it a stipend.
Training expenses can be deducted only if you disclosed the training cost before, and specified minimum period to work to be eligible for training cost not being recovered from them. Even then, it must be actual training cost paid to an external faculty or institution and not internal costs created or imputed.
Basically, I think your policy is faulty (at best) or exploitive (at worse).
If the matter goes before courts or authorities, it will mostly not stand scrutiny
This is more so if you are terminating them or asking them to leave, not that they are resigning and absconding with out notice.
From India, Mumbai
This applies both under Payment of Wages Act (for employees) and under Standing Orders (for employees and trainees) and under Apprentice Regulations. Please remember that they may be employees even if you call them trainees. the amount payable may be a salary / wage even if you call it a stipend.
Training expenses can be deducted only if you disclosed the training cost before, and specified minimum period to work to be eligible for training cost not being recovered from them. Even then, it must be actual training cost paid to an external faculty or institution and not internal costs created or imputed.
Basically, I think your policy is faulty (at best) or exploitive (at worse).
If the matter goes before courts or authorities, it will mostly not stand scrutiny
This is more so if you are terminating them or asking them to leave, not that they are resigning and absconding with out notice.
From India, Mumbai
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