Hiring Summer Trainees: What Legal Steps and Payment Methods Should You Consider?

Hi All,

Just wanted to know if there is any legal/statutory aspect in hiring summer trainees for 2 months. Also, how should the payment (stipend) be made to summer trainees?

Appreciate all your help.

Thanks & regards, Manasi

Yes, it is applicable if they are trade/vocational trainees. They are covered by the Apprentices Act, 1961.

The provisions of this Act are not applicable to any area or industry in any area unless the Central Government, by notification in the Official Gazette, specifies that area or industry as an area or industry to which the said provisions shall apply, with effect from the date mentioned in the notification.

It also covers graduate or technician apprentices, meaning an apprentice who holds or is undergoing training to obtain a degree or diploma in engineering or technology, or an equivalent qualification granted by any institution recognized by the Government, and undergoes apprenticeship training in any subject field in engineering or technology as prescribed.

A Technician (vocational) apprentice holds or is undergoing training to obtain a certificate in a vocational course involving two years of study after completing the secondary stage of school education recognized by the All-India Council and undergoes apprenticeship training in any subject field in any prescribed vocational course.

A Trade apprentice undergoes apprenticeship training in any trade or occupation as prescribed.

A Management trainee is engaged by an employer for undergoing a training course in the employer's establishment (not apprenticeship training under this Act), subject to the condition that upon successful completion of the training, the individual shall be employed by the employer on a regular basis.

There is a provision to pay stipend (the amount varies from time to time) to the above trainees.

Hi Mansi,

Hiring summer trainees has no legal aspect. However, make sure that you take necessary approvals before you proceed with this program. The payment made in the form of a cheque is a better idea legally.

Regards,
Sujan

Manasi, is there a summer internship available at your place? If so, please consider me. I am Rahul, finishing my first year of MBA, and my area of interest would be HR.

Dear Mr. Arvind Singh,

We are taking summer trainees from various management institutes, engineering colleges, and universities purely on a need basis for the departments within our organization.

These students are pursuing their studies and, as part of their curriculum, are required to undergo "on-the-job" training to enhance their learning effectiveness.

They are typically available only during the summer and undertake practical training under the supervision of our department representatives, known as "Industry Mentors," as well as the respective professors from their institutes or universities. These students are assigned different projects or tasks tailored to their specializations, such as marketing, sales, finance, human resources, supply chain management, information technology, etc. Depending on the project's nature, they may engage in both desk work and field assignments during the two-month period.

Upon completing their summer internships, they are required to submit project reports for evaluation based on the guidelines provided by their respective institutes or universities.

We are inquiring whether the stipend paid to these summer trainees would fall under the purview of the ESI/EPF Acts. Our company has not obtained permission from the Apprentice Advisor under the Act.

Regards,

Seemaa

I would also like to request Mr. JS Malik to kindly respond to my query.