Seek clarifications for applicability of PF and ESI for NEEM Trainees

Dear Sirs,
Seek clarifications for applicability of PF and ESI for NEEM Trainees.
Regards,
Ganapathy V

The FAQ of NEEM site answers the query as follows:

16. Does NEEM Scheme and the exemptions under NEEM Scheme fall under the PF and ESI
Act.
 PF and ESI authorities go by their Act which is Statutory and Supreme over all others. AICTE has
written to PF Commissioner for exempting PF and ESI to NEEM trainees at par with
Apprenticeship Act. The decision lies with office of the Commissioner. The outcome of the
decision will be updated when received.
Looking to the Scheme, it looks like there will be no PF & ESI coverage, anyhow the authority concerned shall decide the matter.

Dear Colleague,
As rightly guided by our Colleague, both the PF Act and ESI Act excepts only " Apprentice" in the employee definition. NEEM Trainees are not part of Apprentices Act 1961. There is still confusion in the status of NEEM and many authorities under PF & ESI Act directs employers to cover the NEEM Trainees under PF & ESI until :

1. NEEM Trainees are brought under Provisions of Apprentices Act 1961 OR

2. PF and ESI Act " employee" definition is amended to exclude " Neem Trainees" apart from " Apprentices"

It appears that NEEM Trainees are not exempted under PF & ESI as of now. Kindy discuss with Asst Commissioner of PF and Asst Director of ESI for more clarity and then be guided
Take Care,
Dr.P.SIVAKUMAR
Doctor Siva Global HR
Tamil Nadu