Navigating ESI and EPF: Do Probationers and Apprentices Need Coverage?

Dear Members,

This is most urgent.

1. Shall we need to cover all the probationers under ESI and EPF?
2. Is there any provision to avoid this?
3. How about apprentices? Should they be covered under PF & ESI?
4. How long shall we keep apprentices as apprentices?

Please update.

Regards,
Jeyaseelan A
+91-9994629950
ajseelan_80@rediffmail.com

Hi Jayaseelan,

All the employees, including probationers, trainees, and contract labor, are covered by PF and ESI. These are statutory benefits. If you inquire about how to avoid them, it is illegal and cannot be discussed in a forum like this.

As per the Apprentices Act 1961, the employer has to pay the stipend, which does not attract statutory benefits except for the liability of the employer to pay compensation in case of injury to the apprentice as per the Workmen's Compensation Act. The period of training for the apprentice will be determined by the National Council. An apprenticeship agreement exists, which must be registered with the Apprenticeship Advisor. The hours of work applicable to regular employees also apply to apprentices, along with leaves, holidays, and all other provisions of safety and welfare as indicated in the Factories Act or Mines Act.

Regards,
PRADEEP

Hi Chandrakant,

Everything is possible. Is it within the legal framework or with some manipulation? Please clarify so that we can also follow the same, if possible and show some saving to our organizations.

Regards, PRADEEP

Hi Jeyaseelan,

I completely agree with Pradeep and please follow his view. Apprentices join only for their on-the-job training as per their agreements, and they should not be deemed as bona fide employees. Therefore, there is no need to cover them under PF and ESI.

Regards,
Sidharth