Need Statutory Complaince Assistance To Appoint Of FTT - CiteHR
Srinath Sai Ram
Hr Manager
Ir, Er, Payroll, Recruitment,
Dy. Manager - Hr & Ir
+1 Other

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Dear Seniors,
Our company is planned to recruit Fixed Term Trainees(FTT) for 2yrs period I need guidelines for the below queries
1. 2yrs period is legally ok? If ok will the person eligible to fight for permanency role?
2. If we appoint FTT what are all the Legal compliance we need to fulfill?
3. Is FTT to be considered as Workmen under Factories Act 1948?
4. Any other scheme or way to engage persons with minimal Statutory Obligation from Employer?
Please guide me

There is Apprenticeship Act 1962. Under the act there are numerious designated trades. Have a loof at the trades. Period of training is also against each trade. The rate of stipend is also specified. There is no statutory obligation to appont Apprentices after training
Dear Mr. GPL,
Thanks for your reply. what you said is appropriate and we are going to appoint them as a trainee for 2 yrs period as FTT in non-core activities.
We decided to recruit Arts degree / HSC / +2 / PUC completed persons. Are they comes under the scheme of Apprenticeship?
Is there any Agency/Board apart from Board of Apprenticeship is available to enroll and engage persons through the agency in Tamilnadu?
Please guide me.

For what purpose you want to engage FTT and how many persons are going to be engaged for non-core activities. Is there any provision in your certified Standing Orders to engage trainees. Also, if your industry is covered under Minimum wages Act, then the same cannot be skipped. In Tamil Nadu, nowadays below the required number of persons only are available for such non-core category jobs and hence you can approach any outsourcing services agency for such help required by you.
M Venkatraghavan

Dear Mr. Venkatraghavan,
Thanks for your input and We are not covered by IE(SO) Act. Since we dont have 100 workmen in our company and we are covered by MW Act. In that case what would your sugeestion. please share.

As per the information provided by you, you are engaging Employees under the "Nomenclature" "Fixed Term Trainees" for your regular work for a fixed period of 2 Years.They come under the definition of "Employee" under EPF, ESI, ID,Factories Act etc. All Labour laws are applicable to them by virtue of the job performed. No issue with regard to Training Period of 2 Years.Just find out under Applicable Minimum Wages-75% of wages can be paid to Trainees during Training Period
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