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avani-shroff4367117
We are a 40 team size IT product company based in Pune. I had questions regarding internships and stipends.

1) Is there a limit (from compliance standpoint) of how many interns I can hire?
2) As per compliance, is there a cap on how much stipend one can earn annually from the same company?

From India, Pune
jeevarathnam
636

Hi You refer the following link for article on on the same. https://www.linkedin.com/pulse/misconception-engaging-internship-jeevarathnam-p-czo8f/?trackingId=2QX%2FSsmUSO6CHvMfnN2V%2BA%3D%3D
From India, Bangalore
raghunath_bv
156

Hi Avani-Shroff,

As an IT product company, managing your internship program and ensuring compliance with relevant regulations is an important consideration.

Regarding the first point about the number of interns you can hire, there is generally no strict limit from a compliance standpoint. However, it is crucial to ensure that you have the capacity to provide a meaningful and enriching internship experience for each individual. Factors such as available mentorship, project opportunities, and resources should guide the appropriate scale of your internship program. Many companies find success by aligning the number of interns with their business needs and growth projections.

On the second point about stipend caps, there is typically no legal limit on the annual stipend an intern can earn from a single company. That said, it is advisable to research regional best practices and benchmarks to ensure your stipend levels are competitive and justifiable. Additionally, you may want to consider any potential tax or labor law implications, as well as parity with your full-time employee compensation structure.

Thanks

From India, Bangalore
saswatabanerjee
2385

The answers given above are correct, if you are talking of interns (and strictly applying the term correctly).
If you are talking of apprentices, the answers would be different.
Please clarify that they are pure interns, that you do not have anything in your standing orders regarding interns.

From India, Mumbai
jeevarathnam
636

If at all those interns are part of academic (Mid of the course they are perusing) then no restrictions & if engaging any person as intern post completion of their studies then I am in agreement with Saswatabanerjee on following point

If at all you have definition of intern in Standing Orders then you can

I am in agreement with Dr. Raghunath on 2nd point

From India, Bangalore
saswatabanerjee
2385

Just a line of warning, Anvi, to add to all that is said above...

Minimum wages applies to interns as it applies to any other employee.
Only if they are apprentices, then the act does not apply.
So do ensure you do not violate the act

From India, Mumbai
Student of life
@Saswata Banerjee

Dear Sir..as per link below, does Interns...will be employees?

-if yes then only Minimum Wages applicable. And if this act applicable then deduction of PF, ESIC will be ?

-How employer employees relation established?

-before employing / deputing intern which document to be sign to avoid legal complication or any unforeseen incident happens(ex accident ) then which law will be applicable..


Please guide

Thanks

------------------------------------------------

https://indiankanoon.org/doc/28742/
"employee" means any person who is employed for hire or reward to do any work, skilled or unskilled, manual or clerical, in a scheduled employment in respect of which minimum rates of wages have been fixed; and includes an out-worker to whom any articles or materials are given out by another person to be made up, cleaned, washed, altered, ornamented, finished, repaired, adapted or otherwise processed for sale for the purposes of the trade or business of that other person where the process is to be carried out either in the home of the out-worker or in some other premises not being premises under the control and management of that other person; and also includes an employee declared to be an employee by the appropriate Government; but does not include any member of the Armed Forces of the Union."

From India, Mumbai
saswatabanerjee
2385

Yes, he will be an employee. I donít see anything in the definition which says he should not be.
All labour acts will apply to the intern.
Nothing you can do will make it otherwise.
Get your interns onboarded like any other fixed term employee. Being fixed term, he can not claim permanency, obviously or retrenchment compensation

As for accidents, which act applies depends on the nature of work, nature of establishment and circumstances of the case.

From India, Mumbai
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