Dear Seniors,
In many organisations, college graduates or post graduates are appointed as trainees and are paid STIPEND in which only the ESIC is deducted and no PF. This traineeship period may last from 3 month to 1 year as per the agreement and may be extended if the management wishes to do so.They get a separate appointment letter as trainee which is for fixed period (eg 3 month to 1 year) post which if they are absorbed as regular employee then they are issued fresh appointment with salary. Employees during this period is not eligible for Privilage leave ,PF or other benefits. Only the ESIC is deducted. Also this period is NOT considered while calculating their gratuity. Please confirm if this a right practice as per law? Can employee demand gratuity, PL and PF for the traineeship period? (Please note the traineeship period is different from probation and generally employee need to go through probation period after the traineeship. But in probation they are paid salary with PF and other benefits. So my query is only to the traineeship period?)
I am raising this query because I found many members mentioning that as per law stipend can be paid only to apprentice where PF is not applicable. In any other case stipend is paid to a non apprentice then the stipend is considered as a wage in PF and gratuity act and the employer need to pay PF contribution and gratuity for the traineeship period.
In many organisations, college graduates or post graduates are appointed as trainees and are paid STIPEND in which only the ESIC is deducted and no PF. This traineeship period may last from 3 month to 1 year as per the agreement and may be extended if the management wishes to do so.They get a separate appointment letter as trainee which is for fixed period (eg 3 month to 1 year) post which if they are absorbed as regular employee then they are issued fresh appointment with salary. Employees during this period is not eligible for Privilage leave ,PF or other benefits. Only the ESIC is deducted. Also this period is NOT considered while calculating their gratuity. Please confirm if this a right practice as per law? Can employee demand gratuity, PL and PF for the traineeship period? (Please note the traineeship period is different from probation and generally employee need to go through probation period after the traineeship. But in probation they are paid salary with PF and other benefits. So my query is only to the traineeship period?)
I am raising this query because I found many members mentioning that as per law stipend can be paid only to apprentice where PF is not applicable. In any other case stipend is paid to a non apprentice then the stipend is considered as a wage in PF and gratuity act and the employer need to pay PF contribution and gratuity for the traineeship period.