I am an HR professional working in a hotel in Haryana. We recruit Hotel Management students as industrial trainees for a 6-month period. It's important to note that we are not covered under the Apprentice Act.
Query on PF Deduction and Wage Regulations
My query is about the liability to deduct PF. If we are liable, do we also have to adhere to minimum wage regulations?
I would appreciate it if you could provide me with any recent updates regarding relevant laws.
Thanks & Regards,
Vijay Kumar
From India, Delhi
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1Query on PF Deduction and Wage Regulations
My query is about the liability to deduct PF. If we are liable, do we also have to adhere to minimum wage regulations?
I would appreciate it if you could provide me with any recent updates regarding relevant laws.
Thanks & Regards,
Vijay Kumar
From India, Delhi
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Industrial Exposure Trainees and Legal Obligations
The Act (EPF, ESI, Minimum Wages, or the ID Act) is silent concerning industrial exposure trainees. Since they are students undergoing practical training as per a curriculum of the University/institution, they are not considered employees. As such, no contribution is payable concerning them towards EPF or ESI. The same status will apply regarding the payment of minimum wages. Moreover, under the scheduled employment, IET is not included. However, if a Provident Fund or ESI inspection is carried out, it will be up to you to provide a satisfactory explanation to have them excluded.
Regards,
Madhu.T.K
From India, Kannur
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The Act (EPF, ESI, Minimum Wages, or the ID Act) is silent concerning industrial exposure trainees. Since they are students undergoing practical training as per a curriculum of the University/institution, they are not considered employees. As such, no contribution is payable concerning them towards EPF or ESI. The same status will apply regarding the payment of minimum wages. Moreover, under the scheduled employment, IET is not included. However, if a Provident Fund or ESI inspection is carried out, it will be up to you to provide a satisfactory explanation to have them excluded.
Regards,
Madhu.T.K
From India, Kannur
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Attached is the judgment of the Allahabad High Court, which substantiates the view of Madhu T. K. One more important thing is that you should not include their names in regular muster rolls. Please maintain a different register exclusively for trainees. Also, you must show any amount paid to them as 'Stipend' only. Do not use the term 'Wages' anywhere in respect to these trainees.
Regards
From India, Mumbai
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Regards
From India, Mumbai
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Clarification on Trainee Engagement and EPF Liability
What Manish stated seems different. The HC verdict follows the Apex Court verdict in CAMPCO's case, which relates to trainees engaged following a provision in the Standing Orders. Therefore, all trainees engaged following the provisions of the Apprentice Act and those engaged by virtue of Standing Orders are not covered by EPF. However, the case here is different, as they are neither Apprentices nor engaged under the Standing Orders.
In the case of Industrial Exposure Trainees, which is common in the hotel industry, I believe there is no quotable case law in existence. Whenever a query is raised by ESI or EPF, it should be responded to by stating that they are doing their "project" as "part of their curriculum."
Regards,
Madhu.T.K
From India, Kannur
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What Manish stated seems different. The HC verdict follows the Apex Court verdict in CAMPCO's case, which relates to trainees engaged following a provision in the Standing Orders. Therefore, all trainees engaged following the provisions of the Apprentice Act and those engaged by virtue of Standing Orders are not covered by EPF. However, the case here is different, as they are neither Apprentices nor engaged under the Standing Orders.
In the case of Industrial Exposure Trainees, which is common in the hotel industry, I believe there is no quotable case law in existence. Whenever a query is raised by ESI or EPF, it should be responded to by stating that they are doing their "project" as "part of their curriculum."
Regards,
Madhu.T.K
From India, Kannur
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HC All - Trainees not covered for PF -2010.pdf
Brochure- EMPLOYMENT LAWS FOR WOMEN.doc