How Do the 2019 Apprenticeship Rule Changes Affect Your Business and Apprentices?

Friends, please find attached a notification dated 25.9.2019 detailing several amendments to the Apprenticeship Rules.

- The rate of stipend will range between Rs. 5,000 p.m. to Rs. 9,000 p.m. based on qualifications, with a provision for annual increases.
- It has been clarified that establishments with 30 or more workers are obliged to engage apprentices.
- The maximum number of apprentices has been increased from 10% to 15% of the total strength, with a requirement that a minimum of 5% be reserved for fresher apprentices and skill certificate holders.
- The period of apprenticeship training for optional trades shall be between 6 months and 3 years.
- It has been specified that apprentices will solely be trainees and not considered as labor. Therefore, no labor laws will apply to apprentices.

Thank you.

Dear Sir,

One of my friends received a letter from the local Skill Development Authority stating that they should engage a compulsory apprenticeship program ranging from 2.5% to 15% of the total workforce, or else they may face legal actions. If we are unable to comply with this requirement, how should we respond to the letter?

Please shed some light on this.

Thank you.