I am working in a company wherein we have apprentices as per Standing Order. They are appointed and working in all three shifts.
Clarifications Needed Regarding Apprentices
I have the following clarifications to seek:
1. Our company has around 500 employees. Is there any ratio to be maintained for apprentices?
2. I heard that apprentices as per Standing Orders are only for designation and not for real apprentices as per the Apprentice Act. Is it correct?
3. If so, the apprentices as per our Standing Orders are trainees for 1 year if they are technically qualified or trainees for 3 years if they are not technically qualified. Are they eligible for minimum wages as per Tamil Nadu Minimum Wages? Can I get any government references for the ratio of apprentices a company can keep?
EPF Authorities are insisting on paying PF for apprentices also. That is why I am seeking this clarification.
From India, Coimbatore
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1Clarifications Needed Regarding Apprentices
I have the following clarifications to seek:
1. Our company has around 500 employees. Is there any ratio to be maintained for apprentices?
2. I heard that apprentices as per Standing Orders are only for designation and not for real apprentices as per the Apprentice Act. Is it correct?
3. If so, the apprentices as per our Standing Orders are trainees for 1 year if they are technically qualified or trainees for 3 years if they are not technically qualified. Are they eligible for minimum wages as per Tamil Nadu Minimum Wages? Can I get any government references for the ratio of apprentices a company can keep?
EPF Authorities are insisting on paying PF for apprentices also. That is why I am seeking this clarification.
From India, Coimbatore
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Understanding Apprenticeship Regulations
This is a core issue now. Since apprentices engaged following the provisions of the Standing Orders are not considered employees for the purpose of PF coverage, many establishments have started engaging apprentices after obtaining a certified standing order. At the same time, you should interpret the law correctly. It should not be used as a means to refuse rights conferred to the working class. If you have trainees, they should be trainees by all means. They should be students and not workers. As such, you should not engage them during the night. Apprentices engaged through RI centers following the Apprentice Act cannot be asked to work during night shifts nor can they be asked to do overtime. Similarly, as per the Apprentice Act, you are not supposed to have any number of apprentices as you like, but it should be as per the ratio of apprentices to the number of regular workmen. You cannot have ten trainees as against two or three workers. The normal ratio is 1 apprentice for seven workers.
You have to divide the 500 workers according to their roles, say, machinists, welders, AC mechanics, electricians, turners, etc., and then find under each category how many employees are coming and under each how many apprentices could be engaged. If you have 30 machinists, you can have a maximum of 4 apprentices and so on. The period of apprentice training can be decided by the employer, but there should be a curriculum for that. Apprentices need not be paid wages as per the minimum wages notification, but they should be paid a stipend as per the Central Govt. notification. For the latest notification, you may approach the Training Adviser, Related Instruction Centre of your District. Normally, this center will be functioning in the Govt. ITI/Polytechnic.
Wages and Legal Rulings on Apprentices
Apprentices engaged through standing orders should be paid wages as per unskilled workers' wages in the notification. In Campco's case, the Supreme Court has ruled that apprentices/trainees engaged through provisions of Standing Orders, the PF will not be applicable. They are students by all means. However, in Ramnarayan Textile Mills Vs RPFC, which is a case very similar to yours with a lot of trainees who engage in night shifts and who are paid production bonuses, etc., it was held that trainees, even though engaged as per standing orders, will be considered for PF coverage. The basic reason is that the trainees are big in number and they do the work which a normal regular worker does.
Recommendations for Engaging Apprentices
In short, engage only trainees following a ratio to the regular workmen, and in no case, I would say it should be less than 1 for every 7 workers. Never engage them in shifts, pay them for that, and allow them to do overtime. Moreover, you should have a training curriculum with a schedule.
From India, Kannur
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This is a core issue now. Since apprentices engaged following the provisions of the Standing Orders are not considered employees for the purpose of PF coverage, many establishments have started engaging apprentices after obtaining a certified standing order. At the same time, you should interpret the law correctly. It should not be used as a means to refuse rights conferred to the working class. If you have trainees, they should be trainees by all means. They should be students and not workers. As such, you should not engage them during the night. Apprentices engaged through RI centers following the Apprentice Act cannot be asked to work during night shifts nor can they be asked to do overtime. Similarly, as per the Apprentice Act, you are not supposed to have any number of apprentices as you like, but it should be as per the ratio of apprentices to the number of regular workmen. You cannot have ten trainees as against two or three workers. The normal ratio is 1 apprentice for seven workers.
You have to divide the 500 workers according to their roles, say, machinists, welders, AC mechanics, electricians, turners, etc., and then find under each category how many employees are coming and under each how many apprentices could be engaged. If you have 30 machinists, you can have a maximum of 4 apprentices and so on. The period of apprentice training can be decided by the employer, but there should be a curriculum for that. Apprentices need not be paid wages as per the minimum wages notification, but they should be paid a stipend as per the Central Govt. notification. For the latest notification, you may approach the Training Adviser, Related Instruction Centre of your District. Normally, this center will be functioning in the Govt. ITI/Polytechnic.
Wages and Legal Rulings on Apprentices
Apprentices engaged through standing orders should be paid wages as per unskilled workers' wages in the notification. In Campco's case, the Supreme Court has ruled that apprentices/trainees engaged through provisions of Standing Orders, the PF will not be applicable. They are students by all means. However, in Ramnarayan Textile Mills Vs RPFC, which is a case very similar to yours with a lot of trainees who engage in night shifts and who are paid production bonuses, etc., it was held that trainees, even though engaged as per standing orders, will be considered for PF coverage. The basic reason is that the trainees are big in number and they do the work which a normal regular worker does.
Recommendations for Engaging Apprentices
In short, engage only trainees following a ratio to the regular workmen, and in no case, I would say it should be less than 1 for every 7 workers. Never engage them in shifts, pay them for that, and allow them to do overtime. Moreover, you should have a training curriculum with a schedule.
From India, Kannur
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Apprentices engaged under Standing Orders not come under EPF Act.docx
Delhi Minimum Wages w.e.f. 01.10.2015.pdf