Can We Legally Keep an Employee Unpaid During Their Probation Period?

akhil2015
Hi All,

Can we keep the employee without salary in the probation period?

Regards,
Sumit
ankj
Hi Sumit,

I have heard that some companies do not pay stipends during the internship period. However, when we hire employees on a probationary period, they will continue to be employees (temporarily) for the company. It is necessary to provide a salary during this period and offer a decent hike upon successful completion of the same.
nathrao
No, you cannot keep an employee without salary during the probation period.

What is the concept of a probation period?

It is a process or period in which a person's fitness, for work or membership in a social group, is tested. Therefore, an employee during probation is considered a regular employee who is entitled to full pay.
saswatabanerjee
When you hire an employee, you need to pay them, whether they are in probation or not. That is the law in India specified in the Payment of Wages Act. Additionally, you have to pay above minimum wages. The only situation where you may not pay someone is if they are very short-term trainees. In this case, they would be actual trainees here to learn and not expected to deliver any significant results to the company. Even if you are hiring apprentices, they have to be paid.
advarunsasi@gmail.com
Take them as trainees, pay them some allowance. No labor law is applicable as they will be apprentices not amounting to statutory apprentices under the Apprenticeship Act. As per the standing orders, they need to be paid some allowance as per the applicable standing order.

Thank you.
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