Are CS Trainees Eligible for Provident Fund and Insurance Coverage During Training?

My Company is registered with the Institute of Company Secretaries of India for imparting 15 months of Management Training to CS Students in accordance with the Institute of Company Secretaries Regulations, 1980. The Company pays a stipend of Rs. 15,000 p.m. to CS qualified students and Rs. 10,000 to CS semi-qualified students. The Company does not deduct provident fund and ESIC contribution from the stipend paid to the CS Trainees. The Company indicates in the offer letters of CS Trainees that “the training facilities offered would be a part of the Company Secretaryship Course. You will not have any right whatsoever for being considered for any employment in our organisation.”

Queries Regarding Provident Fund and Insurance Coverage

In this regard, I have a few queries which are as under:

- Whether a person undergoing CS training in the Company would be covered under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, and the Employees' State Insurance Act, 1948, or not.

It seems your posting is incomplete. The provisions of the PF and ESI Act will not apply to the students engaged by you as a part of their curriculum of the CS course.

Provident Fund and ESIC Deductions for CS Trainees

Whether the Company needs to deduct Provident Fund and contribution for ESIC from the stipend of CS Trainees. The ESIC Inspector has instructed us to cover the CS Trainees under the provisions of the Employees' State Insurance Act, 1948. However, as per our understanding, the CS Trainees are covered under the term "Apprentice" as per the Apprentices Act, 1961. Therefore, the Company is not obliged to contribute to Provident Fund and ESIC for the CS Trainees. We seek your response urgently in this regard to avoid any non-compliance with the said laws.

Can anyone help me to clear this query? If a candidate is employed in an organization with a beginning salary of Rs. 7000/-, is it necessary to deduct PF or not?

So far as I know, CS/CA trainees are not covered by the Apprentices Act. Only trainees under the Apprentices Act are excluded from the ESI Act.

Regards,
Varghese Mathew
[Phone Number Removed For Privacy Reasons]

You may go through the discussion in the following link - https://www.citehr.com/349913-hotel-...e.html#1614803. Also, go through the notes attached for relevant information.

Regarding Provident Fund (PF)

Individuals drawing more than Rs. 6,500 need not be covered legally. However, if both the employer and employee agree voluntarily, they can be covered, either at Rs. 6,500 or at actuals, with no compulsion.

Thank you.