Navigating Apprenticeship Hiring Compliance: Seeking Insights on Legal Formalities and Challenges

Apprenticeship Hiring Compliance

I would like to share some compliance knowledge regarding apprenticeship hiring. I have been handling recruitment and all legal formalities regarding apprenticeships at my current company. Please review the information below and let me know if there's something I am missing.

Summary of the Apprentice Act - 1961

1. Establishments, as prescribed, shall engage apprentices in a band of 2.5 percent to 10 percent of the total staff strength. Hiring over 2.5 percent is not statutory and is counted as CSR if you hire over 2.5 percent; however, there's a limit up to 10 percent as apprentices since we do not pay EPF & ESIC. Also, the total strength is counted by including contractual workmen as well.

2. Record of Progress
The record of progress of the apprentice should be submitted at the end of each quarter. I have some confusion regarding this, but I have drafted a format to track the performance of the apprentice. Please inform me if there are any forms or reports that need to be submitted, as the apprentice portal and everything have been online since last year.

3. Reservation for Apprentices
We have been hiring apprentices, but we don't specifically recruit based on their caste; many are SC or may not be. We don't collect sensitive data regarding caste; however, it is there on the portal in their individual profiles. Is it mandatory to hire a specific percentage?

4. Payment to the Apprentice
Payment proof should be available from your payroll data.

5. Qualifications of Persons in Charge
We have deployed the apprentice to various departments, and their HOD serves as their in-charge.

Please inform me if there are any other legal compliances. Also, please inform me about the procedure for the legal termination of an apprentice. We hire apprentices under the NAPS scheme.

Location: New Delhi, India

Tags: terminating an employee, termination policy, termination of employment, apprentice act, Country-India, City-India-New-Delhi

Legal Compliance and Procedures for Apprenticeship in India

✓ Engagement of Apprentices
- The Apprentice Act of 1961 mandates that establishments engage apprentices within a range of 2.5% to 10% of the total staff strength.
- Hiring apprentices above 2.5% can be counted as CSR, but the limit is up to 10% since EPF and ESIC contributions are not required for apprentices.

✓ Progress Tracking and Reporting
- Maintain a record of the apprentice's progress and submit it at the end of each quarter.
- Ensure compliance with the online apprentice portal for reporting requirements.

✓ Reservation for Specific Categories
- While there is a provision for reservation of apprentices from Scheduled Castes, Scheduled Tribes, and Backward Classes, it's not mandatory to hire based on caste.
- Ensure equal opportunities for all applicants irrespective of caste.

✓ Payment and Qualifications
- Payment proof for apprentices should be from your payroll records.
- Persons in charge of apprentices should possess the necessary qualifications and oversee their training effectively.

✓ Termination Process
- When terminating an apprentice under the NAPS scheme, follow due process to ensure legal compliance.
- Notify the concerned authorities and provide appropriate documentation for the termination.

✓ Additional Legal Compliance
- Stay updated on any amendments to the Apprentice Act and ensure full compliance with all statutory requirements.
- Regularly review and update your apprentice training programs to align with legal standards and industry best practices.