Exposing the Exploitation: The Unethical Stipend Practices in CA/ CS Training Firms
The journey of becoming a Chartered Accountant (CA) or Company Secretary (CS) is undeniably challenging. It demands relentless dedication, long hours of study, and rigorous practical training under the mentorship of professionals. For trainees, the stipend is not merely a financial benefit but an acknowledgment of their hard work and a means to manage their daily expenses. Unfortunately, some training firms engage in the unethical practice of withholding stipends when trainees resign—a violation of trust and professional ethics.
Stipends: A Legal Obligation, Not a Charity
Stipends are not optional Gifts or charity. They are a mandatory provision under the rules governing CA and CS training. This payment compensates trainees for their significant contributions during their training period. Denying stipends, especially upon resignation, is both unethical and illegal, undermining the very principles of fairness and respect that the profession upholds.
The Reality of Exploitation
Many so-called “prestigious consultancy firms” exploit trainees by treating them as cheap labour. Trainees are made to work tirelessly, filing hundreds of MGT-7 and AOC-4 forms, often for inadequate stipends of ₹8,000–₹10,000. These exhaustive 8-9 hour workdays demand far more effort and commitment than the stipend reflects.
The exploitation doesn’t stop there. When a trainee decides to resign, seeking an escape from these conditions, the firm often retaliates by withholding the promised stipend. They provide vague, illogical reasons, and evade accountability when asked for written acknowledgment of non-payment. This behaviour exposes the firm’s awareness of its own wrongdoing and its disregard for fairness.
“Dusro ki mehnat ke paiso se apni jeb kab tak bharoge?” (How long will you fill your pockets with others’ hard-earned money?) This question resonates with every exploited trainee. Their practices resemble a small shop’s unethical operations rather than the professionalism expected from reputable firms. I am tempted to disclose the name of the firm engaging in such unethical practices, as they continue to exploit young professionals in the market. However, adhering to my professional ethics, I choose not to do so. My intent is not to single out one entity but to shed light on a broader issue that requires systemic change and accountability within the profession.
At the time of joining, trainees are not informed about these exploitative practices or the so-called “policies” that serve only the firm’s interests. If a firm cannot honour a basic stipend of ₹5,000–₹8,000, it has no ethical right to hire trainees. Trainees are not unpaid labourers, and this lack of transparency damages the profession’s integrity.
I speak from personal experience. I resigned from a firm due to personal reasons and informed them within a week of joining. There was no contract, no terms outlined, and no joining letter specifying a notice period. During my probation period, I diligently worked for 15 days, fulfilling my responsibilities.
Instead of understanding my situation, the firm withheld my stipend, which was promised at the time of joining. Even basic conveyance expenses for commuting during those 15 days were denied. This unjust treatment is not just disappointing but highlights the exploitation entrenched in the system.
A Call for Change
The profession must address these malpractices head-on. Here’s how:
Strict Stipend Enforcement: Regulatory bodies must ensure that trainees are paid their full stipend, regardless of resignation.
Transparent Policies: Firms must provide clear terms of employment at the time of joining, including notice periods and stipend payment terms.
Accessible Grievance Mechanisms: Trainees need a reliable platform to report such exploitative practices and seek redress.
Conclusion
Trainees are the future of the CA and CS professions. Exploiting their hard work and withholding their rightful earnings not only disrespects their contributions but also tarnishes the reputation of the profession. It’s time for regulatory bodies, senior professionals, and firms to step up, ensure ethical practices, and treat trainees with the respect and fairness they deserve. The integrity of the profession depends on how it nurtures its youngest members, and that begins with honouring their rights and acknowledging their efforts.
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