Are Trainees Covered Under the P.F. Act? Seeking Advice and Documentation

I have a question for the trainees. Are employees' P.F. applicable to them? Please advise or share the documents for the same.

Dear Texel, you could have given sufficient information about the nature of your industry and the type of trainees. In certain industries like the hotel industry, BHM students are allowed to work as "Industrial Trainees." This allowance is part of their curriculum to provide industrial exposure during their education, making them industry-ready and employable. Sometimes, BHM students work as industrial trainees during their summer vacation. In these cases, hotels provide them with allowances. As industrial trainees, they are not direct employees, so PF is not applicable. However, their allowances are subject to ESI deduction.

In contrast, some companies hire freshly graduated individuals as "Trainees" and put them on the company's payroll with the designation of Trainee. In this scenario, trainees are considered full-time employees, and all statutory deductions, not just PF, become applicable.

In India, terms like trainees or apprentices are often used loosely or interchangeably, which is incorrect. I recently provided a clarifying reply on this topic. You can refer to it using the following link: https://www.citehr.com/582730-employ...-trainees.html

Thanks,

Dinesh Divekar

Mr. Dinesh has replied aptly and in detail. In a nutshell, any trainee who is being trained for their curriculum or for an internship stipend is paid. PF is not applicable in this case. However, any trainee hired for a job as a Job Trainee, PF is applicable to the best of my knowledge.

Clarification on Trainee Employment Status

Texel should respond to the points raised by our learned members. I would presume that the employer appoints selected candidates as employees who are initially called 'Trainees' and are likely to be confirmed upon satisfactory completion of the prescribed 'training period' in suitable posts. If they fail, the unsuccessful ones will be ousted. Am I correct?

In some establishments, they are appointed as "Management Trainees," while others call them Probationers. Some organizations conduct 'confirmatory appraisals' to evaluate their performances during the training period. It's commonly adopted either as a 'stipend' or a 'consolidated salary.'

There are some establishments that appoint either honorary or paid trainees who are not given any assurance whatsoever, but top performers are absorbed into regular posts at par with any freshers. There are never-ending disputes about how this training period should be treated, as part of regular service or not. Opinions differ. Unless their status is decided, there cannot be clarity on EPF/ESI, etc.

Trainees are not covered, as the laws only recognize apprentices and not trainees.

Hi,

The Supreme Court has held that an apprentice or a trainee is not an employee, and the employer is not liable to contribute Provident Fund for him or her. Refer to [A trainee is not an employee: apex court - Today's Paper - The Hindu](http://www.thehindu.com/todays-paper/a-trainee-is-not-an-employee-apex-court/article3172570.ece).

Dear Mr. Texel from Mumbai,

For reasons best known to you, you have not reverted with the information asked. Despite this, Honoured Members continue to share their information on the subject "Coverage of Trainees under EPF." This demonstrates the attitude of New Age HR Professionals.