How to Reassure a New Sales Assistant with a Temporary Appointment Letter?

Dear Seniors,

We have appointed a boy in our sales department as a Sales Assistant. For the first three months, we will pay him in cash to assess his suitability for the position. After this period, we plan to transition him to a permanent role within the company.

While we provided him with an offer letter detailing his salary, he is now requesting an appointment letter. As we will be paying him in cash during the initial three months, what type of appointment letter can I provide him? Should it indicate that he is a trainee or intern during this period?

Please advise on how we can ensure his satisfaction during these initial months. It is our intention to confirm his permanent role within the company after three months, but we want to provide him with reassurance and clarity to avoid any misunderstandings.

Your suggestions are appreciated.

Thank you,
Ravita

Before commenting on your issue, I need clarification on the following:

1. Why is he being paid in cash when he is on probation?

2. What is the problem in issuing an appointment letter to him mentioning that he is being hired on a probation basis and will be confirmed after 3 months based on his performance and his supervisor's feedback?

3. Also, in the first line of your query, you have mentioned that he has been appointed as a Sales Assistant. Then, why is your management considering him as a trainee/intern? Is he not a permanent employee?

Thank you for your reply. Actually, he was hired through a consultancy and is being paid in cash for three months. The main issue is that he is paid in cash for three months, which is why we cannot provide him with an appointment letter.

Question on Cash Payment and Appointment Letter

Would it be acceptable if we pay his salary in cash and provide an appointment letter for a probation period of three months? Is it legally wrong to pay probationary employees in cash?

Thank you.

As far as my knowledge is concerned, it is his right to get the appointment letter as proof of his employment with the company. I do not think that it is illegal to provide an appointment letter to an employee who is on probation.

I know we, as HR professionals, need to think from the management's point of view, but if you were in his place and the company denies you an appointment letter, wouldn't you feel insecure about that? I would suggest that you issue an appointment letter to him mentioning that he is on probation for "x" months and post that, based on his performance, his employment will be confirmed with the company.

Hi Tamanna, thanks for the reply. I will do the same and provide him an appointment mentioning a probation period of 3 months. However, paying his salary in cash is not a legal issue. He will also not be given a salary slip for the first 3 months.

Please suggest...

Thanks...

Ravita, that is fine, dear. Don't worry at all. He can use that appointment letter as proof of his employment. You should speak to him and inform him that he will not receive any salary slip for the probation period. Relax, dear.

You can clearly mention the same in the employment agreement and state that it is the company practice, but he will have to respond to that 3-month period of observation. You may give him a provisional appointment letter which holds good for 3 months.