Concerns About NEEM Apprenticeships: Are They Exploiting Workers Without Benefits?

Concerns about NEEM Apprenticeships

Newly launched NEEM apprenticeships do not provide for PF, ESI, and Bonus. Employers could engage NEEM Apprentices through a few Facilitators from 3 months to three years. In the absence of defined provisions relating to on-the-job training and Social Security benefits, there is a lot of scope for misuse of the scheme, and it will be worse than the "Thirumagal Thirumana Thittam" of Tamil Nadu. The scheme will replace contract laborers and Act Apprentices and will be a boon for Employers to exploit the laborers once again.

Dear Nataraj,

In each and every scheme, there will be pluses and minuses. It should be seen and evaluated from both angles.

For newcomers, many ask, "What is your experience?" or "Do you have no experience?" For such a crowd, this is an excellent scheme. For preparing future trained manpower, this is a boon.

Ram K Navaratna
HR Resonance

PF Applicability for NEEM Trainees

PF has become applicable for NEEM Trainees (Please see attachment). Now is the time for the Government to consider the mandatory absorption of NEEM Trainees by Employers, similar to the case of Apprentices under the Apprentices Act 1961 (50% as per attachment). Otherwise, after a few months or years, there will be a significant increase in unemployment because Employers will continue to rely on flexible NEEM Trainees, and upon completion, these Trainees will once again face unemployment.

For views or comments, please contact N. Nataraajhan, Sakthi Management Services [Phone Number Removed For Privacy-Reasons]; [Email Removed For Privacy Reasons].

Dear All,

Please find attached copies of Circulars dated 04th Sept '18 and 12th Feb '19 of the EPFO regarding the applicability of PF for NEEM Trainees.

N. Nataraajhan
Sakthi Management Services
Hp: +91 94835 17402
Email: natraj@sakthimanagement.com

Dear All,

While going through the definition under Sec 2 of the EPF Act 1952, I found that as per Sec 2(f), "excluded employee" means: (iv) an apprentice (copy attached). The explanation clearly states that an apprentice means a person who is declared to be an apprentice by the authority specified in this regard by the appropriate Government. NEEM Notification has been issued by the All India Council For Technical Education in the Gazette of India, which clearly states that NEEM Trainees are 'Trainees' and eligible only for a consolidated stipend to undergo on-the-job training and shall not be entitled to a guarantee of employment. The scheme specifically exempts statutory deductions of PF/ESI, etc. (cl 15.2 of the NEEM scheme).

The NEEM scheme has been notified by AICTE, a statutory body of the Government of India, which is the appropriate Government under the EPF Act. I am sure the above points will make it clearer to argue the point that NEEM Trainees are excluded employees under the EPF.

Regards,
N. Nataraajhan
[Phone Number Removed For Privacy-Reasons]
Sakthi Management Services