Apprentices Act, 1961

Apprentices Act, 1961 Objective: To encourage adding Apprentices so that they become industry-ready. The Apprentices Act, 1961 was enacted with the objective of regulating the programme of training of apprentices in the industry by utilizing the facilities available with them for imparting on-the-job training. However it was not getting utilised fully hence amendments were done recently. One of the major reasons according to employers for not providing apprenticeship on a large basis was the penal provision of imprisonment of 6 months. Apprenticeship training contains both theoretical instructions and on-the-Job training in the organizational premises. With the amendment, the training (for theoretical instructions) can be outsourced to a third party. Key terms: "designated trade" means any trade or occupation or any subject field in engineering or non-engineering or technology or any vocational course which the Central Government, after consultation with the Central Apprenticeship Council, may, by notification in the Official Gazette, specify as a designated trade for the purposes of this Act "optional trade" means any trade or occupation or any subject field in engineering or non-engineering or technology or any vocational course as may be determined by the employer for the purposes of this Act; “trade apprentice” means an apprentice who undergoes apprenticeship training in any designated trade; “graduate or technician apprentice” means an apprentice who holds, or is undergoing training in order that he may hold a degree or diploma in engineering or non-engineering or technology or equivalent qualification granted by any institution recognised by the Government and undergoes apprenticeship training in any designated trade; Introduction of optional trades: Earlier employers could only engage apprentices in 'designated trades' which are specifically notified, such as carpentry, data preparation and computer software, programming and systems administrative assistant, etc. Now, in addition to the designated trades, an employer can also engage apprentices in an 'optional trade' i.e. a trade or a field that has not already been 'designated'. For apprentices engaged in an optional trade, the employer has more flexibility to decide the duration of the apprenticeship (subject to certain parameters set out in the Amendment Rules), identify the proposed syllabus for training these apprentices, etc. Prior to the Amendment Act and the Amendment Rules, graduate or technician apprentices only included individuals holding (or undergoing training to hold) a degree or diploma in engineering or technology. The scope has now been expanded to include even non-engineering degree holders and diploma holders. Number of apprentices: The Central Government shall prescribe the number of apprentices to be engaged by the employer for designated trade and optional trade. It adds that the minimum age for apprenticeship in designated trades related to hazardous industries shall be 18 years although the Act sets the minimum age for being engaged as an apprentice at 14 years Multiple employers can come together, either themselves or through an approved agency to provide apprenticeship training to apprentices under them. The employer is required to pay a minimum stipend to the apprentice. In some cases, the burden of part of the stipend is borne by the Government. Portal: https://apprenticeshipindia.org/ A portal site is being developed to use Information Technology to file Apprenticeship Contract, periodic returns, etc. The details of contract of apprenticeship shall be entered on the portal-site within seven days, for verification and registration. ‘Internships’ are not covered under this act. They need to be registered under this Act to avail more benefits. Hours of work and leave of apprentices will be as per the discretion or policy of the employer. The employer is not bound to offer employment to the trainees after their training period is over, but can have its own policy for recruiting apprentices who have completed the apprenticeship training. It is not mandatory to offer employment to the apprentices after training. Termination of contract: the employer shall pay the prescribed amount of compensation to the apprentice where the contract is terminated for failure on the part of the employer to honour the contract. Where the contract is terminated for failure on the part of the apprentice, he or his guardian shall refund the cost of the training to the employer Legal Position of Apprentices - An apprentice is not a workman during apprentice training. Provisions of labour law like Bonus, PF, ESI. Act, gratuity, Industrial Disputes Act etc. are not applicable to him. However, provisions of Factories Act regarding health, safety and welfare will apply to him. Apprentice is also entitled to get compensation from the employer for employment injury. Every trade apprentice who has completed the period of training shall appear for a test to be conducted by the National Council to determine his proficiency in the designated trade in which he has undergone his apprenticeship training. Punishment for offences by Employer will be fine (no imprisonment). Some think that this amendment has created more favorable conditions for the capitalist class as they can make their own rules and regulation in certain matters. The government stated in reply that this amendment bill is a revolutionary step in Indian history, as this is going to provide quality skilled people to the industries. No apprentice shall be required or allowed to work overtime except with the approval of the Apprenticeship Adviser who shall not grant such approval unless he is satisfied that such overtime is in the interest of the training of the apprentice or in the public interest. Any disagreement or dispute between an employer and an apprentice arising out of the contract of apprenticeship shall be referred to the Apprenticeship Adviser for decision. Why Should Employers Encourage Apprenticeship By participating in apprenticeship schemes the organization or employer are getting skilled and trained employees, which serves as an investment in coming times.