19 November 2013
can we employ a employee with zero salary??? or is it legal to give zero salary to employee?? if yes then pls give some base to the same..thanks in advance
19 November 2013
Leaving aside the ascpect of legality, please ensure that the person employed is not referred to as an employee and any amount paid thereon is not recorded as salary.
This is because, calling him an employee will attract the laws of PF, ESI, Profession tax etc, and other local laws.
Alternatively, in case the law requires certain minimum amount to be paid, please term it as 'Honarorium' and record the same in the books accordingly.
CAclubindia
