Navigating Apprenticeship Training: Can We Shift Trainees and Manage Their Benefits?

Hi Seniors,

Greetings. I am really happy to see the discussions and be guided by the seniors here. Thank you all.

Apprenticeship Training Queries

Sir, we are planning to start an apprenticeship training program in 1961 through NATS, and our company falls under the S&E Act. Below are my queries, please:

1. Shall we move the existing Graduate Engineering Trainees to apprenticeship training even though they are covered for PF & ESI?
2. If covered under apprenticeship training, do we need to provide leaves with wages per month?
3. In apprenticeship training, if a trainee joins another company after 1 year of training, can we implement any control or penalty clause for deviation from the candidates?

**Location**: New Delhi, India

apprenticeship training, Country-India, City-India-New-Delhi

Apprenticeship Training and PF/ESI Coverage in India

1. Moving Graduate Engineering Trainees to Apprenticeship:
- In India, Apprenticeship training is governed by the Apprentices Act, 1961. When transitioning existing Graduate Engineering Trainees to Apprenticeship training, who are already covered for Provident Fund (PF) and Employee State Insurance (ESI), it's important to note the following:
- As per the Apprentices Act provisions, apprentices are generally not covered under PF and ESI. Therefore, if Graduate Engineering Trainees are moved to Apprenticeship training, they may not be eligible for PF and ESI benefits during the training period.

2. Leaves with Wages for Apprentices:
- Under the Apprentices Act, apprentices are entitled to leaves with stipends but not necessarily wages. Stipends are paid during the training period, and the exact leave provisions can vary based on the terms of the training program and any applicable company policies. It's advisable to align the leave policies for apprentices with the provisions of the Apprentices Act.

3. Control or Penalty Clauses for Trainees Joining Another Company:
- The issue of implementing control or penalty clauses for trainees joining another company post-training requires careful consideration. While there is no blanket provision in the Apprentices Act regarding this aspect, companies can include clauses in the apprenticeship agreement to address such scenarios. However, the enforceability of such clauses would depend on the specific terms and conditions outlined in the agreement and the prevailing labor laws.

It is crucial to consult with legal experts or HR professionals well-versed in Indian labor laws to ensure compliance with regulations and to draft appropriate agreements that safeguard the interests of both the company and the apprentices.