Short Note on Apprentices Act, 1961 read with Apprenticeship Rules, 1992

The Apprentices Act, 1961, read with Apprenticeship Rules, 1992

Applicability:

It is applicable to the whole of India and to all sectors including manufacturing and services both.

Labour laws like ESI, PF, Minimum Wages Act, Industrial Disputes Act etc. are not applicable to the apprentices.

During apprenticeship training, if any apprentice meets with any accident or personal injury, the employer is responsible for paying the compensation to the apprentice as per the provisions of the Workmen’s Compensation Act.

Employers have to reserving a training site for SC and ST apprentices for every assigned trade, training.

Duration of Apprenticeship (including basic training) is between 6-36 months for Optional Trade and Designated Trade at the discretion of an establishment.

Criteria for Eligibility of Establishment engage Apprentices:

a) The Establishments have a workforce of 3 or less are not permitted to engage apprentices.

b) The Establishments having a workforce between 4 – 29 this is optional to engage Apprentices.

c) All Establishment having workforce (regular and contract employees) of 30 or more number of workers shall be mandatory to undertake Apprenticeship Programs in a range from 2.5% – 15% of its workforce (including direct contractual employees) every year. Additionally, 5% reserved for Fresher apprentices.

Eligibility to get registered as apprentices:

A person shall not be less than 14 of age, and for designated trades related to hazardous industries, not less than 18 years of age.

Stipend:

As per new rules, notified the minimum amount of stipend prescribed ranges-

a) Apprentices with Vocational Certificate at monthly stipend of Rs 7,000/-

b) ATechnician apprentices or diploma holder in any stream or sandwich course (students from degree institutions) at a monthly stipend of Rs 8,000/-

c) Graduate apprentices or degree apprentices or degree in any stream at monthly stipend of Rs 9,000/-

During the 2nd Year of apprenticeship training, there shall be an increase of 10% in the prescribed minimum stipend amount and further 15% increase in the prescribed minimum stipend amount during the 3rd Year of apprenticeship training.

National Apprenticeship Promotion Scheme (NAPS):-

This is a scheme of Government of India to provide financial support to establishments undertaking the apprenticeship training.

Reimbursement of 25% of prescribed stipend subject to a maximum of Rs. 1500/- per month per apprentice by the Government of India to all employers who engage apprentices.

Reimbursement of cost of basic training (up to a limit of Rs. 7500/- for a maximum of 500 hours = Rs.15/hour) by the Government of India to Basic Training Providers (BTPs) in respect of apprentices who come directly for apprenticeship training without any formal training.

Compliance:

a) Submission of Half-Yearly Report which is maintained in the Form Apprenticeship-IA of Schedule-III to Regional Director or State Apprentice Advisor by 15th April or 15th October, as the case may be.

b) Submission of Half-Yearly Report regarding Apprentice Engagement in Form Apprenticeship-2 of Schedule-III to the Regional Director or the State Apprenticeship Adviser, by 15th April or 15th October, as the case may be.

c) Submission of report on Quarterly basis in Form Apprenticeship-6 of Schedule-III (Record of Progress of Apprentice) to the Director of Regional Board of Apprenticeship Training.

d) Quarterly sending report of the work done and training undertaken by the apprentices engaged in his establishment, in Form Apprenticeship-1 specified in Schedule-III to the Director, Regional Board of Apprenticeship Training concerned.

Payment of apprentices:

An apprentice shall not be paid by his employer on the basis of piece work nor shall he be required to take part in any output bonus or other incentive scheme.

Leave and Holidays:

Apprentice is eligible for a leave in 12 months as given below-

a) Casual leave of 12 days

b) Medical Leave of 15 days and

c) other leaves of 10 days and to such holidays as are observed in the establishment in which he is undergoing training.

Hours of Work:

Total hours of work should be 42 to 48 hours (including the time spent on Related Instruction) and shall not allow to work overtime except with the approval of the Apprenticeship Adviser.

Time of payment of stipend:

The stipend for a particular month shall be paid by the 10th day of the following month.

Termination:

Any termination of contract of Apprenticeship should be forwarded/ approved by the Apprentice Advisor.

Contract of Apprenticeship:

The employer and apprentice must enter into a contract of apprenticeship. Such contract will have such terms and conditions as may be agreed to by the parties to the contract, but such terms and conditions shall not be inconsistent with any provision of this Act or rules.

The apprenticeship training will commence on the date on which the contract of apprenticeship has been entered.

Employer must upload the contract on the Portal site www.apprenticeship.gov.in within 7 days, for verification and registration.

Record Maintain:

a) Every employer shall maintain records of the progress of training of each apprentice undergoing apprenticeship training in his establishment in form of a workshop or laboratory note book.

b) Every such employer shall also furnish such information and returns in such form, to such authorities and at such intervals as may be prescribed.

Penalties:

Punishable with fine which shall not be less than Rs. 1,000 but may extend to Rs. 3,000.

Author – CA Gaurav Agrawal, Kishore Gupta & Co, Chartered Accountants in Practice from Central Delhi and can be contacted at [email protected] & Mobile Number 9711033545.