Are Trainees Entitled to PF, ESI, and Bonuses Without Apprentices Act Registration?

Mandatory Benefits for Trainees

Is it mandatory to extend the benefits of PF, ESI, bonus, and other statutory benefits to employees employed as trainees in the organization without registration under the Apprentices Act? If it is mandatory, kindly mention the section/clause under the respective acts.

Regards,
Parag

All trainees other than those engaged as apprentices as per the provisions of the Apprentice Act, 1961, are considered as employees for the purpose of any labor legislation. A trainee engaged as per the provisions of the certified Standing Orders of the company is excluded from EPF, but no such exclusion is given in respect of ESI. For the purpose of payment of Bonus, trainees are also considered to be employees. Trainees are considered employees for all benefits like layoff compensation, retrenchment compensation, and entitlement to approach before the disputes settlement machinery under the Industrial Disputes Act.

Moreover, the training period (other than the apprenticeship period) will be counted for the calculation of eligibility and the amount of gratuity when he leaves the establishment.

Regards,
Madhu.T.K

No, no contribution is payable on the bonus amount paid to employees. However, if it is paid on a monthly basis, it will be treated as part of the salary for the purpose of determining ESI contribution.

Regards,
Madhu.T.K

As advised by Mr. Madhu, trainees, except those taken under the Apprentice Act, are eligible for PF, ESI, and Bonus. Please extend these benefits to the trainees.

Regards,
K. Ramachandra
Bangalore