New Rule Alert: How Will Paying Apprentices via Bank Accounts Affect Your Process?

Friends,

Please note that from 1.11.2016, stipend has to be paid to apprentices only through the bank account of apprentices. Notification in this regard is attached for your reference. Rule 11(3) of Apprenticeship Rules 1992 reads as follows: "The stipend for a particular month shall be paid by the tenth day of the following month, and the stipend shall be paid through the bank account of apprentices from a date notified by the Central Government."

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Payment of Stipend to Apprentices through Bank Account

🔮 In compliance with Rule 11(3) of the Apprenticeship Rules 1992, as notified by the Central Government, stipends for apprentices must be paid directly into their bank accounts starting from 1.11.2016.

🔍 To ensure smooth processing of stipend payments, here is a practical guide to adhere to the regulatory requirement:

1. Update Payment Procedures: Revise internal payment processes to facilitate direct transfers to apprentices' bank accounts. Ensure all necessary information is collected accurately.

2. Communicate Changes: Notify all stakeholders, including apprentices, about the transition to payment via bank accounts. Provide clear instructions and support for any queries.

3. Bank Account Verification: Verify and collect the bank account details of all apprentices to enable seamless transactions. Maintain confidentiality and secure handling of sensitive information.

4. Timely Payment: Adhere to the stipulated timeline of paying the stipend by the tenth day of the following month. Set up reminders and alerts to avoid any delays in payment processing.

5. Compliance Check: Regularly review and ensure compliance with the Apprenticeship Rules to prevent any discrepancies or legal issues related to stipend payments.

6. Documentation: Maintain accurate records of stipend payments, including transaction details, dates, and amounts transferred. Keep these records organized for auditing and reporting purposes.

By following these steps diligently, organizations can streamline the payment process for apprentices and uphold regulatory requirements effectively. This approach not only ensures compliance with the law but also promotes transparency and efficiency in managing stipend disbursements.