Navigating Apprentice Enrollment: Can Freshers Join Without PF Contributions?

Hi, I am Jijo. I am working in a bus body manufacturing firm. In my company, many ITI/ITC and Btech freshers are joining for training. Is there any option or how to get a standing order for enrolling them as apprentices without paying PF?

1) Until the time you get your standing orders certified, you cannot get an exemption for PF as a Trainee.

2) Until you register your organization under the Apprentice Act, you cannot get an exemption for PF for Apprentices.

Legal apprentices are as defined in the Apprentices Act. Only after the approval of the apprenticeship adviser can apprentices be engaged. Even if you engage an employee as an apprentice without the adviser, he or she will be treated as a regular employee.

Prashant Ingawale, please take note of this.

Dear Mr. Jijo,

You have to submit the "Draft Standing Orders" to the Certifying Authority for Certification. If trainees are continued in service after completion of training, you are liable to cover them under the EPF Act with retrospective effect from the date of training. Consequently, you are requested to revisit your decision.

Srinath,

By doing so, can he have the category of employee as an apprentice without the approval of an apprenticeship advisor?

Dear Shrikant Sir,

No, an apprentice is one who is appointed as per The Apprenticeship Act, 1961 duly approved by the concerned Apprenticeship Advisor.

In our company, every year candidates from ITIs and engineering colleges join as trainees with a lower stipend. After one year, we move them to permanent roles if they are suitable. During that one-year period, they are covered under ESIC for one year of training and do not have PF contributions. Now, I want to establish a standing order for engaging these types of trainees. If there is a draft format for a standing order available, please forward it to me and provide assistance. Alternatively, please advise me on whom I should consult to proceed with this matter. [Email Removed For Privacy Reasons]

Dear Mr. Jijo,

You have stated that trainees are covered under ESI during the training period. Consequently, they have to be covered under EPF during the training period irrespective of absorption/non-absorption on the rolls of the company. It is your misconception that by getting standing orders certified, you can exclude trainees from the coverage of EPF. Please revisit your decision after considering all pros and cons.

Dear Jijo,

If you are paying less than the prescribed minimum wages to them, you could face legal action. Paying less than the minimum wages will be viewed very seriously. The stipend being paid should at least be equal to the prescribed minimum wages.