Not paying new staff for three months of working and paying all the arrears after the third month. Why such policy?

Kera

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I just got to discover that some companies have a policy where new staff are not paid for the first three months. They would be working for free. The company would now pay all the arrears on the third month. And from there, such staff start receiving monthly pay.

What is the essence of the policy of new staff working for three months without pay?
 
I haven't heard such kind of policy in my country. An employer like that will be sanctioned by law under the Labor Union. It's against the law abusing a newly hired employee without a pay for three months and not reimbursing the unpaid months after expiry. That employer could be reported to the authorities.
 
it happens here in Nigeria during a worker probationary period . it should not mean that employees are working for free. The probationary period is meant to allow employers to assess a new hire's suitability for the role without legally committing either party for an extended period. you get all your arrears pay after the three month period
 
This is because that three month is ment to monitor the worker, its more like a probation period where they are being tested. If they fail within that three months, they would be laid off.
 
I know an oil company in my country that has this policy. And the new staff don't even panic because they are sure they would be paid their three months arrears.
But the problem in their country the employees will not be paid across the board after three months. For me that's inhuman.
 
In my country there is no government regulation that employees must be paid after working for the first 3 months, so you can check or ask the government's labor department, whether the 3-month salary payment system is feasible or not, how, employees must meet their daily living needs and transportation costs.
 
I think such policies is unfair and unjust. How will the worker cope during the 90 days? I don't see any benefit of such policy!
They can borrow to survive at the interim. Before you know it your payment is sent
 
This is something totally wrong. In India we have many companies that cheat their employees regarding payments. The private schools and colleges are worse.
I just got to discover that some companies have a policy where new staff are not paid for the first three months. They would be working for free. The company would now pay all the arrears on the third month. And from there, such staff start receiving monthly pay.

What is the essence of the policy of new staff working for three months without pay?
 
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