Apprentices Act 1961 - Will the Minimum Wages Act be Applicable? PF, ESIC & LWF Will be Applicable?

Hello all,

In our company, we have hired a Trainee for the work of Coil & Winding. The trainee's qualifications include a B.Tech degree and an industrial training certificate. The company is located in Haryana.

Apprentices Act of 1961: Stipend Criteria

If we hire under the Apprentices Act of 1961, what are the criteria for providing a stipend? Will the Minimum Wages Act be applicable?

Applicability of PF, ESIC, and LWF

Additionally, will PF, ESIC, and LWF be applicable?

Duration and Government Reimbursement

Is there a fixed duration for this arrangement? How can we seek reimbursement from the Government?

Your reply will be very helpful to us. Thanks in advance.

**Location**: Noida, India

Apprentices Act 1961 - Regulations and Applicability

In the scenario described, where a Trainee is hired for Coil & Winding work with a B.Tech degree and an industrial training certificate under the Apprentices Act of 1961, several considerations come into play:

- [Icon] Stipend Criteria: The stipend for apprentices under the Apprentices Act is generally determined based on the rules set by the respective State Government. It is advisable to refer to the specific guidelines outlined by the Haryana State Government regarding the stipend amount for apprentices in the state.

- [Icon] Minimum Wages Act: As per the provisions of the Apprentices Act, apprentices engaged under this Act are exempt from the applicability of the Minimum Wages Act. Therefore, the Minimum Wages Act may not be applicable in this particular case.

- [Icon] PF, ESIC, and LWF Applicability: PF (Provident Fund), ESIC (Employees' State Insurance Corporation), and LWF (Labor Welfare Fund) are usually not applicable to apprentices engaged under the Apprentices Act. These statutory deductions and benefits are typically not extended to apprentices as they are in a training capacity.

- [Icon] Duration of Arrangement: The duration of the apprenticeship is typically fixed and specified in the agreement entered into with the apprentice. The period of apprenticeship can vary depending on the nature of the trade or vocation for which the apprentice is being trained.

- [Icon] Reimbursement from Government: To seek reimbursement for engaging apprentices under the Apprentices Act, companies can explore various schemes and programs initiated by the Government aimed at promoting apprenticeships. The National Apprenticeship Promotion Scheme (NAPS) is one such program that offers financial incentives to employers engaging apprentices. Firms can register under NAPS and avail of the benefits provided by the scheme.

By adhering to the regulations outlined in the Apprentices Act 1961 and understanding the specific provisions applicable to apprenticeships, companies can effectively engage trainees while complying with the statutory requirements governing such arrangements.