Are Trainees Eligible for EPF and ESI Benefits Under Company Policy?

Dear All,

Due to a shortage of skilled labor, we are planning to hire a few candidates as trainees for a fixed period. We will train them and, based on their performance, consider putting them on the company's payroll. Kindly let me know whether the trainee, under the company's policy or certified standing order of the company, comes under the purview of EPF and ESI.

Understanding Trainees and Their Employment Status

Trainees are individuals brought into an organization specifically to receive training. They must be part of a curriculum that requires such training, like the Industrial Training of ICAI/ICSI/CWA or apprenticeships under NCVT/ITI/SCVT. One cannot arbitrarily designate someone as a trainee without these conditions.

If the above criteria are met, then Provident Fund (PF) or Employee State Insurance (ESI) does not apply. For more information, refer to the definition of an employee: [Employee's Covered under ESI Act, 1948](http://www.shramsamadhan.com/2016/10/employees-covered-under-esi-act-1948.html) and [Universal Account Number (UAN) & Employee Provident Fund (EPF): Rules, Procedure, Return, Claim & Updates](http://www.shramsamadhan.com/p/universal-account-number-uan-employee.html).

Dear Mohan,

All the persons being kept as trainees, either on a fixed-term basis, will come under PF & ESI. Perhaps your organization has standing orders, and one category of workmen is also defined as trainees, which mostly occurs. Therefore, you can engage people as per requirements, and after the stipulated time, you can pay off that fellow. However, you must ensure that the appointment advice specifies the period/tenure of engagement.

Thanks