How Should We Handle Stipend Discrepancies Between Training Batches? Seeking Advice

Hi all,

There is one query based on the situation. We had started the training batch for the 2022 year pass-out, maxi, for 3 months. This was entirely performance-based.

We had to exit some of the trainees since their performance was not good. It was promised to give a stipend depending on the number of their working days, and we are doing that. However, this is not the case with the 2nd batch. The management team decided to give the stipend after the completion of 30 days only, and it was made clear to them.

A candidate from the first batch has called a candidate from the 2nd batch and told him that if he pressures HR, they will release his stipend amount.

What should we do now? We have to release the stipend for the first batch. If we want to deduct the amount in the name of training expenses, can we do that? Kindly provide your inputs.

Payment Obligations for Trainees

The general rule is that you must pay people for the number of days they have worked. This applies both under the Payment of Wages Act (for employees) and under Standing Orders (for employees and trainees) and under Apprentice Regulations. Please remember that they may be employees even if you call them trainees. The amount payable may be a salary/wage even if you call it a stipend.

Deductions for Training Expenses

Training expenses can be deducted only if you disclosed the training cost beforehand and specified the minimum period to work to be eligible for training cost not being recovered from them. Even then, it must be the actual training cost paid to an external faculty or institution and not internal costs created or imputed.

Concerns About Policy Validity

Basically, I think your policy is faulty (at best) or exploitative (at worst). If the matter goes before courts or authorities, it will mostly not stand scrutiny. This is more so if you are terminating them or asking them to leave, not that they are resigning and absconding without notice.