Disclosure of Monthly Stipend Information
I oversee HR and Accounting, and one of my accounting employees disclosed the amount of a monthly stipend (these are processed through Accounts Payable) that another employee receives, to a third employee. Does a monthly stipend have the same privacy protection as wage? The employee is guilty of gossip for sure, but is there anything stronger? The stipend was a temporary part of a relocation package.
I feel that the trust has been betrayed, and I also know that this employee is actively unhappy about their wage.
From United States, Saint John
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I oversee HR and Accounting, and one of my accounting employees disclosed the amount of a monthly stipend (these are processed through Accounts Payable) that another employee receives, to a third employee. Does a monthly stipend have the same privacy protection as wage? The employee is guilty of gossip for sure, but is there anything stronger? The stipend was a temporary part of a relocation package.
I feel that the trust has been betrayed, and I also know that this employee is actively unhappy about their wage.
From United States, Saint John
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Confidentiality of Remuneration
Confidentiality of remuneration is an internal matter for any organization. If you have well-designed salary scales like those in PSUs and government services, even without disclosure, one person can know what others earn because there is transparency regarding salaries and allowances. However, in private establishments, we follow a practice where salary should not be disclosed to others. Yet, in a unionized environment, this may not be the case as there will be transparency among the workers. Therefore, legally there is nothing wrong, but ethically, an accountant should not disclose any material facts, including salary.
What Do You Mean by Stipend?
Normally, a stipend is given to a trainee, and the same amount will be fixed for all trainees. If there is no uniformity even in the case of stipends for trainees, what HR policy do you have?
From India, Kannur
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4526Confidentiality of remuneration is an internal matter for any organization. If you have well-designed salary scales like those in PSUs and government services, even without disclosure, one person can know what others earn because there is transparency regarding salaries and allowances. However, in private establishments, we follow a practice where salary should not be disclosed to others. Yet, in a unionized environment, this may not be the case as there will be transparency among the workers. Therefore, legally there is nothing wrong, but ethically, an accountant should not disclose any material facts, including salary.
What Do You Mean by Stipend?
Normally, a stipend is given to a trainee, and the same amount will be fixed for all trainees. If there is no uniformity even in the case of stipends for trainees, what HR policy do you have?
From India, Kannur
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I view it as neglecting your duties and responsibilities. It is not a question of equal stipend for all, nor workers making it public, transparency, or anything of the sort. I consider it an unwanted, unnecessary action by the Accounts person. Just because he happens to know does not mean he should divulge it to others. It is not part of his job.
So why did he choose to make it public? What was his motive in doing so? Was it just for personal satisfaction or to favor someone at the expense of others?
In any case, if the employee whose salary is disclosed has no complaint, then the Accounts person should be warned. If the employee does have a complaint, then the Accounts person should be charged and punished. The simple rationale behind this is that today it's this, tomorrow it could be some other relevant, critical information being shared. Therefore, it must be stopped at the outset.
Vibhakar Ramtirthkar.
From India, Pune
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So why did he choose to make it public? What was his motive in doing so? Was it just for personal satisfaction or to favor someone at the expense of others?
In any case, if the employee whose salary is disclosed has no complaint, then the Accounts person should be warned. If the employee does have a complaint, then the Accounts person should be charged and punished. The simple rationale behind this is that today it's this, tomorrow it could be some other relevant, critical information being shared. Therefore, it must be stopped at the outset.
Vibhakar Ramtirthkar.
From India, Pune
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Confidentiality in Compensation
First of all, why should there be confidentiality regarding stipend, wage, or salary? Discrimination leads to confidentiality. This is an unethical practice in the private sector, which leads to exploitation and discrimination, going against the principle of equal pay for equal work, and it encourages selfishness in society. The worker who is receiving a better wage package is actually helping the employer to cheat others who are working in the same organization with equal efficiency and dedication.
From India, Pune
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First of all, why should there be confidentiality regarding stipend, wage, or salary? Discrimination leads to confidentiality. This is an unethical practice in the private sector, which leads to exploitation and discrimination, going against the principle of equal pay for equal work, and it encourages selfishness in society. The worker who is receiving a better wage package is actually helping the employer to cheat others who are working in the same organization with equal efficiency and dedication.
From India, Pune
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Salary-Note.doc
SALARY SHEET CALCULATION.xls