Can A Trainee Continue To Serve More Than 5 Years In The Same Firm?

Dear All,

We have some trainees in my establishment, and we appoint them in 2 phases. The first phase is for 2 years. If their training is satisfactory, they are promoted to the 2nd phase, which also has a training duration of 2 years. After completing 4 years of training, we will only take them on probation based on the requirement. If anyone's training is not satisfactory in the 1st phase, their 1st phase training will be extended by one more year. This means that one trainee may work for 5 years or more to complete their training.

My queries are as follows:
- Can we continue any person as a trainee for more than 5 years?
- Is a trainee eligible for gratuity if they have completed 5 years of service?
- What are the obligations on trainees as a principal employer?

I seek clarification on the above queries along with any relevant case law if available.

Thanks & Regards,
Rao

We have some trainees in my establishment, we appointing them in 2 phases. The first phase is for 2 years. If their training is satisfactory, we promote them to the 2nd phase, and the 2nd phase training duration is also 2 years. After the completion of 4 years of training, we will only take them on probation as per the requirement. If anyone's training is not satisfactory in the 1st phase, their 1st phase training will be extended for one more year. In this scenario, one trainee may work for 5 years or more to complete their training.

My queries are:
- Can we continue any person as a trainee for more than 5 years?
- Is a trainee eligible for gratuity if they have completed 5 years of service?
- What are the obligations on trainees as a principal employer?
- If a trainee dies during training, are they eligible for gratuity?

I seek clarification on the above queries along with any relevant case laws, if available.

Thanks & Regards,
Rao

Dear Friend,

It is strange that training lasts for more than one year. A training period should not exceed one year; then you may put them under probation for six months. It is a concerning situation; either the company/organization lacks good training or something fishy is going on. Even the best military camp training lasts for one year and may extend for six months in exceptional cases for the most talented individuals for strategic success. In the military service, individuals are trained for skills, successful leadership, etc., yet nothing should go beyond two years continuously.

Anyhow, best of luck in creating the best training, and please do not extend it beyond the retirement stage.

Kind regards, [Your Name]

Hello Rao,

What on Earth is your company into that needs a training period of over 5 years? And frankly, I can't believe that the trainees took it all lying down without any murmur. Can you give more details about the situation as follows?

1. The sector your company is involved in.
2. Employee strength.
3. What type of training are the trainees given in the first phase and then in the second phase?
4. Is there any bond with the trainees?
5. Since you raised the query about gratuity, please elaborate on whether this is the first time this issue has come up or if you are referring to a future situation and want to be prepared for it.

Regards,
TS

I have a query.

We do have trainees who are trained in specific modules prepared by our technical team. We give them an Offer Letter which states that they will be trained and placed. We do not charge anything. After completion of training, we place them in organizations that require trained candidates. Many candidates leave us and take jobs elsewhere based on our training.

My query is: Can we charge some part of the training costs and mention this clearly in the Offer Letter given to trainees? Please answer.

We do not charge anything nor do we pay them anything during the training period.

Dear friend,

Genuinely speaking, you can charge the trainee for providing job skills training to meet market requirements, adding value to the customer in the specific case, and connecting with companies willing to hire your trainees. Additionally, you can offer incentives to the trainee if there is sufficient revenue for the society, as a gesture of satisfaction towards you and your organization, possibly as a social welfare measure. However, you should not impose PF/ESI on the trainees as they are not employees of the organization. Nevertheless, you must adhere to the trainee procedures. Best of luck!

Dear Gopinath Sir,

I thank you for the advice. We do not want to charge trainees and want to provide training free of cost. Our revenue may come from the payment we receive from the companies where these trainees will be placed by us post completion of training. Our concern is - What if the candidate does not want placement and leaves us or leaves in-between before completion of training?

Can we put a clause in the Offer Letter given to trainees as follows: "In case you leave us before completion of training or do not want to get placed, then you have to remit us Rs. 20,000/- (say) towards the cost of training."

Hello DS Nath,

While appreciating your views and PoA of your expenses/fees coming from the companies, I think you also need to be realistic.

I suggest 'think through the head' rather than 'through the heart' in such situations.

Your practice/plan of not charging the trainees is more than likely to be taken advantage of by many of them - in the process, I am not sure if you can achieve the break-even as well.

One way of keeping your lofty philanthropy and the reality together could be this: charge the trainees from the beginning, maybe on a monthly basis, on normal commercial terms, with a rider that the fees would be refunded if they get placed through you. If needed, you could even give this commitment in writing to ensure there's no trust deficit. However, this would require that you have the 'fees from the companies' angle fully and completely covered without any loose ends. Otherwise, you would end up refunding the trainees and also not receiving anything for your efforts.

Your plan to add the "clause in the offer letter... you have to remit..." may not be practical. It's more likely that you may have to chase many of them to get your money. Keep the refund action in your hands/control.

All the best.

Regards,

TS

Dear Friend,

It is best to have a strategy of complete structure. Please give training - kindly charge for the training given to the candidate. Let the amount of charge be factual for the needy. Company satisfaction gives a valid trained candidate. This comes under the service sector, and an apprentice is different.

Never expect all the candidates to be genuine, and the best thinking with the heart is different from the head. Never hesitate to talk to the candidate as training is the cost for him to be trained for a valid reason, and nothing comes free. In case you want to give free training, better give/provide it to the needy and provide them placement with the condition of getting the amount on placement; else, ask them to contribute to the training institution as a gesture of goodwill in cash or kind. This is your organization, and you can have the word.

The training module can be charged according to your strategy. Let the minimum amount of training be Rs. 5,000/- and you can decide.

Placement is in a different industry, and providing employment is basically different from training. Both things should not be clubbed as a single factor.