Is It Fair to Extend My Probation After 6 Months of Training and Deduct ESI/PF?

I have been working in a company in Bangalore for the past 6 months as a trainee. As per the offer letter given to me, the training period is for 6 months, for which I was paid Rs. 7500, from which PF and ESI were deducted. Now that I have completed my training and asked the company for an increase in salary, the management is saying that there is another 6-month probationary period for me. This was not mentioned at any time before. Is it possible to deduct ESI and PF during the training period and continue this probationary period after the training period?

Once ESI and PF deductions have commenced, they will continue as long as you serve. Whatever is deducted during the training period will not be returned. ESI is for specific medical purposes, while PF is a long-term accumulation available at the end of one’s career. Some specific loan facilities will be available at a later date. Starting a probation period after a training period is a standard practice that is prevalent. An increase in salary depends on company policy or as per agreed terms in the Appointment Order.

Regards,
V. Raghunathan

Probation and Training Periods

Whether probation starts after training, along with training, or not at all, and how long it will be, etc., is a company decision. The only case where it is not discretionary is if a standing order applies and provides for something different. They should have informed you beforehand, but perhaps they did, or you didn’t bother to ask.

Salary Increase Considerations

Regarding salary increase, that is dependent on what you negotiate with the company. So, it’s your negotiation power and leverage against the company. If they don’t want to lose you, they will give you a hike. If you are receiving pay equal to that of a trained fresher, they won’t.

PF and ESIC Deductions

However, PF and ESIC deductions need to be made. The company does not have a choice there. PF accumulates in your account with interest at 8.5% per annum, tax-free until you stop working. Then it’s yours to use as retirement money.

Your company is considering you as an employee; hence, the company deducts PF & ESIC. Though you were called "Trainee," it is just a nomenclature. It’s not under the Apprentice Act, where they can pay a stipend without PF deductions.

Methods Followed in Companies

As per our interactions with industry experts, we know a few methods followed in companies:

• 1-year trainee (GET/DET) + 6 months probation => confirmation
• 6 months trainee + 6 months probation => confirmation
• 1.5-year trainee (GET/DET) => confirmation
• 3 months trainee + 3 months probation => confirmation
• 6 months probation => confirmation
• 3 months probation => confirmation
• 2 years trainee + 6 months probation => confirmation

(All the above do not include ITI Trainees)

Increment Part

Increment is not the right of an employee; it’s the privilege given by the organization to retain the best talent. You may negotiate with the HR Manager directly on the compensation part.

If you feel that you are getting less than minimum wages, please highlight this to management. See the rules applied in the past for all trainees; if there are precedents, you can discuss them with your supervisor.

As long as you are happy with your earning and learning, avoid approaching. If you find injustice is being done, you may approach politely to your HR manager.

Above is our personal opinion. Please hear out all experts, and you may take a call.

Regards,
HR department
BrainLight HR Solutions