Srinath Sai Ram
Hr Manager
Hr Consultant
+1 Other

At one of the apparel mfg company having about 200 persons are working.
They are on training and being paid stipend.
My query :
The amount of stipend paid is less than MA declared by Govt of Guj. Is this OK?
Since stipend is paid, no PF act attract. Is this OK?
Appreciate your early response.

From India, Visnagar
Stipend can not be compared with wages/Minimum Wages
The amount of stipend paid is less than MA declared by Govt of Guj. Is this OK? please upload Stipend Paid Details & MA declared by Govt of Gujarat
Please upload your Appointment letter for determining applicability of EPF

From India, New Delhi
If the persons are trainees appointed either under The Apprentice Act or under The Industrial Employment (Standing Orders) Act they will not come under the purview of the Employees Provident Funds and Miscellaneous Provisions Act otherwise PF will attract.
P S Lakshmanan

From India, Kolkata
Dear Mr Lakshmanan, Please elaborate how "Trainee" can be Appointed under "The Apprentices Act"
From India, New Delhi
The Apprentice Act was enacted in 1961 and came into force on 01.03.1962. Initially, the Act envisaged the apprenticeship training of trade apprentices. The Act was amended in 1973 and 1986 to include training of graduates and technicians and technician (vocational) apprentices respectively under its purview. It was once again amended in 1997 and 2008 to amend various sections of the Act as regards definition of “establishment” and “worker”, reservation for candidates belonging to Other Backward Classes etc. although ATS (Apprentice Training Scheme) has been in operation for over four decades.
Background of the present amendment to The Apprentice Act
Now taking into consideration of the Union Government’s focus on National Skill Development it was felt necessary to amend the Act once again and an Inter Ministerial Group (IMG) was constituted & its three meetings were held under the Chairmanship of Director General of Employment and Training/Joint Secretary to finalize the recommendations making changes in the Apprentices Act, 1961.
Accordingly, the Apprentices (Amendment) Act, 2014 with massive amendment to various provisions of the Principal Act was published in the official Gazette on 5th December, 2014 and it came into force with effect from 22nd December, 2014.
According to the new amendment under Section8 (1), The Central Government shall prescribe the number of apprentices to be engaged by the employer for designated trade and optional trade.
While fixing the number of apprentices the Government will keep in mind the IMG’s recommendation that within a financial year each establishment should not engage apprentices less than 2.5% and not more than 10% of the total worker of all trades. Further, the establishments may be given flexibility to take into account seasonality in operation and establishment may engage apprentices as per apprenticeship months within the above limits. There will not be any requirement of survey of establishments for fixing the number of seats.
By virtue of the Amendment to Section 2 (ii) for clauses (e), (j) and (k), Engineering and Technology falls under the definition of “Designated Trade and Optional Trade”
The amendment to Section 2(ii) for clauses (e), (j) and (k), reads as follows:-
Section 2 (ii) for clauses (e), (j) and (k), the following clauses shall respectively be substituted, namely:—
‘(e) “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;
(j) “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;
(k) “industry” means any industry or business in which any trade, occupation or subject field in engineering or non-engineering or technology or any vocational course may be specified as a designated trade or optional trade or both;’;
(iii) after clause (l), the following clauses shall be inserted, namely:—
‘(ll) “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;
Please go through the Apprentices Act and the relevant Rules framed therein and also the subsequent amendment taken place.
A copy of the Gazette Notification notifying the Apprentices (Amendment) Act, 2014 which came in to force from 22nd December, 2014 is attached herewith.
P S Lakshmanan

From India, Kolkata

Attached Files
File Type: pdf Apprentices (Amendment) Act 2014.pdf (96.1 KB, 65 views)

Thank you for your valuable contribution..
What I under stood by above...
Apprentice are do not come under preview of PF Act.. They need to pay only stipend decided by Govt.
My one more query..
There are two employees working on pieces rate and we need to pay them Min Wages declared by Govt time to time.
If one employee is making 100 pieces/ 8 hrs. and another is making 90 pieces/ 8 hrs. can we deduct "X" amt for not making 100 pieces/8 hrs? or suggest something by which we can deduct some amt , which give them some pressure to reach up to decided pieces / 8 hrs.

From India, Visnagar
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