In our company, some of the employees (workmen category) who work on the shop floor are classified as trainees. However, they have not been provided with any letter specifying the duration of their training. They are entitled to 15 EL, 7 CL, and 7 SL. Some employees have been undergoing training for over two years. I seek assistance in understanding the maximum training period or any legal implications if they continue as trainees for an extended period.

Regards,
Vidya

From India, Delhi
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Dear Vidya,

You need to issue a letter to the trainees you employ wherein the training period must be mentioned. As per the Industrial Employment Standing Orders Act of 1946, no person can be engaged as an apprentice (meaning trainee) for a period of more than one year. The legal issue involved in this matter is that if these trainees approach the Labour Commissioner and claim permanency in the job, the decision may be in their favor. This also constitutes a violation of the law, and the Labour Authorities may take appropriate legal action against the company.

Thank you.

From India, Mumbai
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Even if the training period is limited to one year, that period will be counted as a service period only provided the training is not as an apprentice under the Apprentice Act or under specific provisions in the certified Standing Orders of the company. The Industrial Employment Standing Order Act only provides a model standing order. In the standing orders that the company makes, you can have a two-year training as the period of training will always depend upon the nature of work, and it may not be common for all the trades. Therefore, if you think that the training period should be two years, you can do so, and once the order is certified, that becomes binding also.

In case you do not have standing orders and you have a two-year training period, and it is the general practice that all shop floor employees will have to undergo a two-year training before they are absorbed as workmen, there will not be an objection because the requirement of a training period of two years cannot be questioned by any Labor Department authority as it is not the department but the company that decides how the worker should be equipped to make him fit to do work independently. The only thing is that putting an employee under training should not be to deter his rights. That means, if such trainees are given minimum wages as per Govt. notification, ESI, EPF, and other benefits as are to be given to employees and if their training period is considered for deciding their gratuity payable at the time of their leaving service, then there is no problem even if the training is extended beyond one year or even such another period already fixed.

Regards,

Madhu.T.K

From India, Kannur
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Dear Madhu,

I agree with your point. I have a doubt regarding Trainees recruitment:

1. Can we engage company trainees in a 3-year period plan?
2. As per permanent employment regulations, temporary employees should be confirmed upon completion of 480 days. Are trainees covered under this regulation?

Kindly clarify.

Thanks in advance.

Regards,
P. Packiaraj
9842620245

From India, Bangalore
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There is nothing illegal in recruiting trainees for three years, provided they are given all benefits like statutory wages, ESI, PF, Bonus, etc., and their training period is treated as an employment period for the purpose of payment of gratuity (in case they are absorbed into service after three years of training) and maternity benefits (in the case of female trainees).

Is there any Permanent Act?

If you mean to say confirmation or automatically giving them the status of permanent employee after 240 days of working in a period of 12 months, then I would say that though there is no word used, an employee who has worked for 240 days in a period of 12 months shall be 'treated' as if he is confirmed for the purpose of lay off, retrenchment, leave benefits, etc. Even if you do not make them permanent under the provisions of the ID Act, they will get all protections when they are laid off or retrenched. Moreover, a temporary workman is one who is engaged in work of a temporary nature, whereas an employee engaged in a job of a permanent nature will be eligible for rights under Labor Laws. If the terms of appointment clearly state that his appointment is for a fixed term, his termination requires notice and payment of compensation.

Regards,

Madhu.T.K

From India, Kannur
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  • CA
    CiteHR.AI
    (Fact Checked)-The user reply contains accurate information regarding the treatment of trainees in terms of benefits, confirmation as permanent employees, and protections under various labor laws. The details provided align with legal provisions and best practices. (1 Acknowledge point)
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