Compensations To Trainees/apprentice - CiteHR
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Dear HR Professionals,

I need clarity on few points related to hiring of trainees.

We are going to hire Diploma in Automobile engg students (final year result awaited) and ITI (final year result awaited). These students would be kept on training for one year as Diploma Engineer Trainee (DET) and Trainee in Mechanical.

I have few queries (considering laws/legal obligations associated with them):

1. Is there any difference in Trainees or apprentice, i mean any legal obligation associated with the terminology as employer?

2. Is it compulsory to take them on payroll during training period of 1 year or they may be kept simply as trainee without adding to payroll?

3. There compensation should be as per minimum scale of that grade of regular employee or they may be on little bit less pay?

4. what about leave and holidays part? holidays may be given as per yearly list of holidays but is it compulsory to give all kinds of leave such as CL, sick leave etc.?

5. rules on deduction/contribution towards PF/ESI of trainees?

Hope I have made my queries clearly and would be getting help from my dear friends on citehr.

thanks and regards,

Ashima Goyal

Manager HR

Hello,
There is a difference between trainee & apprentice. Apprentice is a course defined by the organisation itself. But hiring of trainee is not part of organisation module. It depends the upon the work load in the dept.
Trainee can not be hired as a part of payroll. If will do so, they will comes under all staturory laws. (PF/ESI/PT/LWF). You can decide a stipend amount (that would be half of the minumum wages amount).
Trainees or apprentice can not be comes under company leave policy
exemptions on levae depend on the company own made policy.
A manual register can be maintained for the trainees & their entry/exit time can be note down.
If they will take leave beyond exemted limit, you can deduct the money from thier stipend.
Hope My above points are littile bit solved your quiries.

Trainees Can be hired as a part of Payroll but you may put them separately as stipend but is still part of PAYROLL., is actually wrong,,,,,,,,,,,,,,,,,
Showing them into statutory registers will be the liability to pay the Compliance as applicable is ok.
If you differentiate the Trainees & apprentices then here I will say Trainees to be paid the Minimum wages of that particular state and to be taken in companies Payroll but apprentices to paid as an stipend to be paid as per the company policy is an out of pocket money. paying less and half of the MW, is actually wrong.
Trainee to be taken onroll and are liable to pay Leave as per the policy stipulated.
You can maintain a combined attendance register with the onroll employees for A's&T's.
Best Regards
Nandan S Negi

Hello,
1. ITI Apprentice comes under "Apprenticeship Act 1961". You may not require them to be inducted on Payroll.
2. There is also scheme for Diploma/Degree (both technical & non technical) Apprenticeship i.e. vocational & Graduate Apprentice under "Apprenticeship Act 1961". You may also engage the employee under this scheme & treat them as "Trainee".
3. The advantage of above is that, employer has no legal obligation in case of their stipend/salary etc. It is not binding employer to continue them after their apprenticeship ends.
Thanks & Regards,
Prashant Borse

In AP who are attend for the apprenticeship according act of 1961. The org should pay stipend to apprentice for every month. Govt., recommended to firms for IT students of apprenticeship program.
The 1 st year 2500
2 nd year 3000

Hello,
1. I have more clarification about stipend paid to apprentice. Employer has to pay stipend to apprentice during apprenticeship period & that amount is much less than current prevailing rates. Govt prescribes the rates of stipend. Employer need not to pay PF, ESI or statutory payments on the stipend
2. As mentioned above in my earlier reply, we may induct graduate apprentice & treat them as trainee. For graduate/vocational apprentice, Govt pays 50 % of stipend to apprentice.
3. Employer may engage trainee, excluding them from statutory obligations (means PF, ESI or other benefits) in the organization. Many organization do this practice. But i think it is not a fair policy.
Thanks & Regards,
Prashant Borse

I suggest to employ as Apprentice and employ them on contract for 11 months. A contract fee to cover Travelling expenses can be paid and after successful completion of 11 months, you can either take them to rolls, or extend the contract after a break of one month, or terminate the contract as per your company requirement.
plz suggest Apprenticeship components and deduction.
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