Is It Feasible to Start an Employee on a Stipend and Transition to Full Payroll After 6 Months?

If I want to keep one employee on stipend and then transition to the proper payroll after 6 months, can I do that? For example, if an employee is appointed with a CTC of 15,000 and a take-home salary of 13,000, can we pay only 11,000 for the initial 6 months and then make up the difference in the following months? Is this arrangement feasible? I would appreciate your suggestions and guidance on this matter.

Legal Implications of Employment Contracts

Such an act would not only be a breach of the contract of employment but also an unauthorized or illegal deduction prohibited under the Payment of Wages Act, 1936, which may entail a levy of a fine amounting to 10 times the amount so illegally deducted.

Understanding Employment Terms

Every term relating to employment in an industry has its own specific legal meaning; avoid unnecessary manipulative use of the terms in the interest of the employer.

Probation vs. Apprenticeship

If you want to assess the suitability of a newly recruited employee for his job and your organization, place him as a probationer for some time but do not reduce him to the status of an apprentice who is paid what is called a "stipend."