Saswatabanerjee
Partner - Risk Management
Adoni Suguresh
Sr.executive (per & Adm)
Essykkr
Statutory Complaince/labour & Employment
9871103011
Private Consultant On Labour Laws
Shalini.15
Head -pfd
+3 Others

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What procedures are to be followed by an employer registered as Shops and Establishments to hire Apprentice, Labours and Manager ?
Is minimum wages limits applicable to Apprentices and Managers as well ?

Whether a Company manufaacturing Electrical & Electronic Components for Two Wheeler, comes under separate industrial category (other that Engineering Industry) under Maharashtra Minimum Wages Act 1948?
There is no specified procedure to be followed for appointing employees.

Get a standard procedure (and preferably fair procedure) set up and follow the same. Ensure that no part of your procedure is a violation of the relevant labour laws.

For apprentices, you need to follow the Apprentice Act.

One part of the requirement is that you need to get in touch with the Apprentice Advisor and inform him of your desire to hire apprentices. He will check what you are doing, what type of training you can give and then notify how many apprentices you can hire. Once that is notified, you can speak to the relevant colleges (mostly ITIs) for giving a list of students who qualify for apprenticeship. They have their own procedure for hiring. you need to check that out also.

However, mostly apprentices are in manufacturing sector. what is your line of work ?

Minimum wages do not apply to apprentices taken under the Apprentices Act or under the Certified Standing Orders. In all other cases, minimum wages apply to all employees

Apprentice has to be paid according to the stipend notified by the govt to this effects, latest attached herewith.

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File Type: pdf TRADE APPRENTICE stipend.pdf (1.25 MB, 3122 views)

Dear Amravatiwala,

I think you must be aware that every state has their own Shop & Establishment Act as well as corresponding Rules, as such you need to check the same in respect of your state and its applicability to the areas.However I want to make it clear that the Shops and Establishments Act & Rules do not specify any precedure or guidelines to hire Apprentice, Labours and Manager. I have been dealing with the state of NCT of Delhi & Haryana and I do not find any relevancy, however you may check the Act as well as corresponding Rules in respect of your state.

Sh Saswata Banerjee has very elaborately explained the procedure reqiured to hire the apprentices under Apprentice Act,1961.The Managers are appointed or hired themselves by the management as per their requirement or through some recruitment agency. The recruitment of Labours are governed under the Employment Exchanges (Compulsory Notification of Vacancies) Act,1959 which stipulates compulsory notification of vacancies and submission of employment returns (ER-I and ER-II) by the employers to the employment exchanges. However the Act applies to all establishments in the public sector and such establishments in the private sector as are engaged in non-agricultural activities and employing 25 or more workers.

Regarding your second query as to whether the minimum wages limits applicable to Apprentices and Managers is concerned. Our fellow member Sh essykkr has very well explained that the apprentice are required to be paid as per the revised rates of stipend notified by the DGET in the attached Gazette notification. The managers are generally not governed under the Minimum Wages Act.

BS Kalsi

Member since Aug 2011

Dear Mr.Amravathiwala,
I agree with Mr.B.S.Kalsi who has adviced you elaborately. Any establishment either under a Shops and Commercial establishments, Factpry Act, or any other manufacturing units registered under applicabe enactments shall follow the Minimum rates of wages as applicable to the establishment as specified by the State Government. This has already mentioned as Unskilled, Semi skilled, Skilled and Clerical and Highly skilled. The wages may be paid as per the nature of work of the employee even for labours or managers whoever may be on the payroll and maintain the statutory records which is must.
As regards engaging Apprentices and Stipend has to be followed the Apprenticeship Act and pay the stipend as specified by the Government under Act to the particular trade as specified and keep informed to the authorities concerned. They are only the Apprentices and not a employedes/
Adoni Suguresh
Sr.Executive (Pers and Adm) Rtd

Hi
I think there is an error in the last sentence in your post
Every employee other than an apprentice is covered under minimum wages act.
It's a different point that managers will rarely be given less than minimum wages.
However, the act and the minimum wage limit does apply to them.
So, you can not designate someone as manager and then pay him (say) ₹ 4000 per month in mumbai

Dear Saswata Banerjee,
Thanks for pointing out the discrepancy in my mail. Probably your indication is towards my last sentence which reads as "The managers are generally not governed under the Minimum Wages Act".You are right in mentioning that "Every employee other than an apprentice is covered under minimum wages act.It's a different point that managers will rarely be given less than minimum wages". I do not dispute the same. What you have mentioned is correct and keeping in mind the same I purposely used the word "generally" in my mail.
Thaks for your reaction.
BS Kalsi
Member since Aug 2011

Dear Sir
Is it possible to hire apprentices through third party? All the compliance would be adhered by the same third party. Is it possible?
If yes, what are requirements from main Employer/ Establishment side?
Please elaborate.
Thanks
Vinay Verma

Mr.Vinay,
You cannot engage Apprentices from third party. Apprentices are to be engaged only by a skilled training who passed out from the institute and to get further practical knowledge are needed to be worked in their respective trade.by imparting additional practical training Hence apprentices are engaged and covered by the Apprenticeship Act. The stipend is fixed by the Central Government and it varies from trade to trade.The stipend fixed by the Government is to be paid to the respective apprentices so engaged and they are not to be treated as employees. There is no binding on employer to con firm or absorb on the rolls of the company on successful completion of training. by the apprentice. If the employer is satisfies he may be absorb.
Adoni Suguresh
Labnour Laws Consultant


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