Hiring Trainees in Manufacturing: What Are the Legal and Payroll Requirements?

Hiring Trainees in the Manufacturing Industry

I need clarity on a few points related to hiring trainees from Cite HR. We are in the manufacturing industry and are going to hire BE Trainees and ITI Trainees. These students would be kept on training for one year as Engineer Trainee and Trainee in Mechanical.

Queries Regarding Legal Obligations and Payroll

I have a few queries (considering laws/legal obligations associated with them):

1. Is there any legal obligation associated with the terminology as an employer?

2. Is it compulsory to take them on payroll during the training period of 1 year, or may they be kept simply as trainees without being added to the payroll?

3. Should their compensation be as per the minimum scale of that grade of a regular employee, or may they be on slightly lower pay?

4. What are the rules on deduction/contribution towards PF/ESI of trainees?

5. Please share the notification if available regarding the eligibility under the stipend act.

Dear Anamika,

Please furnish details about the industry, location, terms & conditions of training, duration of training, and after satisfactory completion of the training period, will they be offered a regular job? Additionally, could you provide information on the nature of jobs, responsibilities of trainees, and stipend particulars?

Thank you.