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Hi All, we are into IT and wanted to hire few apprentice/trainee engineers for our different projects, kindly clarify the following.
1. can we hire trainee/apprentice Engineer on stipend and the stipend will be less than minimum wages (may be 2500.00 or 3000.00 per month)
2. if yes, is there any percentage of total employees on no of trainee/apprentice we can hire unlimited nos.
3. the purpose of this hiring is that we will train then on the job and absorb them on minimum wages based on their performance
4.
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You can engage apprentices on payment of stipend (fixed by the Central Govt.) provided the trade/ work in which you are engaging them is approved by the rules framed under the Apprentice Act, 1961. For this you have to submit your request, rather your willingness to engage apprentices to the Apprentice Adviser of the district and on the basis of your willingness the Apprentice Adviser will visit your firm and assess the possibilities of engaging apprentices on different trades and the ratio of apprentices to regular employees in which you have to engage the apprentices. After that you can ask for a panel of ITI trained persons from the RI Centre (related Instruction centre) and collect the data for conducting an interview and subsequent posting. The period of apprentice training will also be as per Apprentice Rules and the same will be made available by the Apprentice Adviser. The Central Govt. has fixed the minimum stipend payable on each case and depending upon the trade and the length of theory classes attended by them at ITI/ Polytechnic/ Engg. college, the stipend will vary and the an apprentice who has already done a course of three years duration is to be paid appropriate stipend for the fourth year or a candidate who has done a program of two years duration in ITI is to be paid stipend for third year and so on.

Once you are listed in RI Centre it becomes mandatory for you to engage apprentices regularly. Therefore, you go ahead with it, please collect the relevant information, like amount of stipend, duration of training etc which are also available in their website. Apprentices are students undergoing their practical training as part of their curriculum and any action taken against them shall be after informing the Apprentice Adviser only. They are not supposed to be engaged during night and no overtime engagement is permitted. If they absent without informing, action shall be taken only in the presence or knowledge of Apprentice Adviser. More over, it is not mandatory that after training period, the candidate should join our company on the salary offered by us. Of course, it is not mandatory that we should offer employment to them. But more important is that they can just say goodbye to us after completion of the training tenure. Therefore, it should only be viewed as a social commitment and should not be viewed as a scheme to hire people without minimum wages and other statutory coverage, like ESI and PF.

Madhu.T.K
Its very well and elaborate explanation......... But Mr. Madhu I had a doubt....the persons who engaged as a part of the curriculam engaged in the IT Sector (ex. B.Tech students) could consider as an apprentice, if they just sponsored by some Govt. technical institute.....Waiting ur reply please.....
Internship or students undergoing project study as part of curriculum can be excluded, though there is nothing in the Act which tells about such exclusion. In order to prove that these guys are being engaged as part of their curriculum you should collect a letter from the Principal or HOD of their college/ university and should also establish that no stipend is paid to them. If no remuneration is paid, naturally, the question of payment of contribution does not arise also. Such kind of engagement is very common not in IT field but in hotel industry wherein 6 months industrial exposure training is already available in the programme of Hotel Management courses
Madhu.T.K
Here my question is something paid to them.........since with ur interpretation i want to make very clear among many of the member's, especially the new MBA HR guys who tends to interpret the law as per their/management convenience to MAKE IT CLEAR that SOMETHING was Paid under the shadow of either INTERNSHIP or GRADUATE TRAINEES or ETC., for their convenience...will certainly come under ESI, as exclusive part is only the APPRENTICE who were appointed under APPRENTICE ACT............ Your guidelines in this aspect is highly appreciable...
Once again thank you for your PROMPT REPLY.....
I think I have made it very clear right from the first post that only Apprentices engaged under Apprentice Act, 1961, are exempted from the operation of labour laws such as ESI, PF, Minimum Wages, Payment of Bonus Act or Gratuity Act. In respect of interns and project trainees, though the patterns of their engagement is as part of curriculum, if we have paid any stipend or any kind of remuneration, it will be construed that they have been engaged for the benefits of the business (other wise we will not pay any consideration/ remuneration) and the payment so made will attract ESI/ PF.
Madhu.T.K
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