Dear Sir,
AB company hiring a trainee . training period 3 months, company have pay incentive as training period... AB company not consider as a employee... after the 3 month trainee eligible they convert to employee....
Do have legal problem above the case?
thanks
R.Suvitha
As I understand the above case, the person appointed was a trainee and the Company has not paid incentives to that person for the period where the person was a trainee.
Now since the trainee has become permanent, whether the incentives not paid is a issue or not?
According to me, this depends on the employment contract with the person. If the employment contract specifies that the person will be eligible only for stipend during the training period, then there is no issue.
Also if the Company has an internal policy that incentives are paid only to management cadre or permanent employees, then this should suffice.
CAclubindia
