Are Hotel Trainees in Haryana Required to Have PF Deductions and Meet Minimum Wage Laws?

I am an HR professional working in a hotel in Haryana. We recruit Hotel Management students as industrial trainees for a 6-month period. It's important to note that we are not covered under the Apprentice Act.

Query on PF Deduction and Wage Regulations

My query is about the liability to deduct PF. If we are liable, do we also have to adhere to minimum wage regulations?

I would appreciate it if you could provide me with any recent updates regarding relevant laws.

Thanks & Regards,
Vijay Kumar

Industrial Exposure Trainees and Legal Obligations

The Act (EPF, ESI, Minimum Wages, or the ID Act) is silent concerning industrial exposure trainees. Since they are students undergoing practical training as per a curriculum of the University/institution, they are not considered employees. As such, no contribution is payable concerning them towards EPF or ESI. The same status will apply regarding the payment of minimum wages. Moreover, under the scheduled employment, IET is not included. However, if a Provident Fund or ESI inspection is carried out, it will be up to you to provide a satisfactory explanation to have them excluded.

Regards,
Madhu.T.K

Attached is the judgment of the Allahabad High Court, which substantiates the view of Madhu T. K. One more important thing is that you should not include their names in regular muster rolls. Please maintain a different register exclusively for trainees. Also, you must show any amount paid to them as 'Stipend' only. Do not use the term 'Wages' anywhere in respect to these trainees.

Regards

Clarification on Trainee Engagement and EPF Liability

What Manish stated seems different. The HC verdict follows the Apex Court verdict in CAMPCO's case, which relates to trainees engaged following a provision in the Standing Orders. Therefore, all trainees engaged following the provisions of the Apprentice Act and those engaged by virtue of Standing Orders are not covered by EPF. However, the case here is different, as they are neither Apprentices nor engaged under the Standing Orders.

In the case of Industrial Exposure Trainees, which is common in the hotel industry, I believe there is no quotable case law in existence. Whenever a query is raised by ESI or EPF, it should be responded to by stating that they are doing their "project" as "part of their curriculum."

Regards,
Madhu.T.K

I am R.S. Pagad, Advocate. If an employer has a standing order for trainees or they are registered under the Apprentices Act, then only the employer is exempted from paying contributions for trainees/apprentices. Please let me know if you need any further assistance or clarification.