Dear member,
Making an employee work for free is against the Factory Act or Shops and Establishment Act. An employee, whether hired for casual work or otherwise, must receive remuneration commensurate with the duration of work, quality of work, or the quantum of work. Indian labor laws do not have a provision for "free of cost" work.
Employer's Strategy with Unpaid Work
The employer includes a condition in the offer letter that the candidate needs to do unpaid work in their company and wants to play it safe. As such, a newly joined candidate will be on probation, and during probation, the candidates can be removed with just a notice. Therefore, the employer can discontinue the employment without having a liability to pay anything to the candidate. Thus, the employers want to have their cake and eat it too.
Implications of Accepting Unpaid Work
Employers are expected to develop a robust recruitment process to hire worthy and competent candidates. However, the expectation to work for free shows they are unsure of their recruitment process. The free work de-risks their failure.
Lastly, it is about setting a new trend too. If you agree to this unusual job offer, the employer's expectations will rise, and they will expect the same from other job candidates as well. The malaise will spread to other employers, and it could become the industry norm.
Thanks,
Dinesh Divekar