How Will the Apprentices (Amendment) Bill 2014 Impact Employers and Apprentices?

The Apprentices (Amendment) Bill 2014 Overview

Friends, the Apprentices (Amendment) Bill 2014, as introduced in Lok Sabha on 6th August 2014, is attached for your information.

Major Changes Proposed

• Providing for establishments operating in four or more states to be brought under the Directorate General of Employment and Training.

• Prescribing the number of apprentices to be engaged at the establishment level instead of tradewise.

• Offering apprenticeship training to non-engineering graduates and diploma holders.

• Allowing employers to undertake new courses (optional trades) based on demand.

• Empowering employers to determine the qualification, period of apprenticeship training, conduct tests, grant certificates, and set other conditions related to apprentices in optional trades.

• Simplifying the procedure for registering contract apprenticeship training.

• Facilitating the exchange of information through a portal-site.

• Permitting employers to engage apprentices from other states.

• Enabling employers to create their own policy for recruiting apprentices.

• Instituting penalties in the form of fines only.

• Granting ex post facto rule-making powers to expedite the recognition of training initiated before new trades are officially notified under the Act.

• Allowing candidates to sit for optional examinations and obtain certification from any competent agency.

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Concerns About the Apprentice Act

It is felt that the government has not studied the pros and cons of the Apprentice Act. Nowadays, the apprentice is engaged in full-scale activities at the office/establishment.

• Engaging apprentices thoroughly (batch by batch) could result in a decrease in regular positions or even their avoidance.

• The need for part-time, contract, or casual workers diminishes since apprentices are paid a stipend/wage lower than that of regular/contract/outsourced workers.

• Furthermore, after completing the training, the establishment/trade is not obligated to absorb them, nor do they have any 'priority consideration' for vacant positions. Consequently, the scheme is entirely against the workers' interests and appears to favor establishments/corporations.

Apprentices (Amendment) Bill Passed by Rajya Sabha

A bill seeking to remove imprisonment as punishment for violating the provisions of the Apprentices Act, 1961, and allowing employers to fix the hours of work and leave as per their discretion or policy was passed by the Rajya Sabha on Wednesday. The Apprentices (Amendment) Bill, 2014, was passed by a voice vote, with a majority of speakers favoring the legislation, saying it was aimed at enhancing the skills of youth and making them employable. PTI

Source: http://epaper.business-standard.com/...127aE004101011