Apprentices Act, 1961

Background

The Apprentices Act, 1961 was introduced to create a uniform framework for apprenticeship training across industries in India. Its main purpose is to regulate the training of apprentices, promote skill development, and ensure the availability of technically qualified manpower. The Act defines the roles and responsibilities of employers and apprentices, prescribes the period and type of training, and provides for supervision by Apprenticeship Advisors. It helps bridge the gap between theoretical education and practical industry needs, thereby enhancing employability of youth.

Applicability

  • The Act extends to the whole of India.
  • It applies to:
    • Designated trades and optional trades notified under the Act.
    • Establishments where such training is carried on and which have the requisite facilities.
  • It is applicable to both public and private sector employers, including Government departments, railways, etc.
  • The Central Government, after consulting the Central Apprenticeship Council, may specify the industries or establishments to which the Act shall apply.
  • The provisions regarding apprenticeship training apply to every employer who has the prescribed number of workers and the capacity to engage apprentices.

Compliance requirement under the Act:

  1. Employment of required number of Apprentices by employer under Apprentices Act (Rule 7B)

Number of Apprentices to be engaged in the organization –

    1. Minimum 2% of Total Strength of any month
    2. Maximum 18% of Total Strength of any month
    3. Total number of apprentices during the year should be between 2.5% – 15% of the Total Strength of the organization including contractual staff.

 

  1. Disclosure of Intention of Engagement of Apprentices in the Organization (Rule 7B (5))

An organization is required to disclose its intention to engage apprentices both in designated and optional trade

 

  1. Age required for being engaged as an apprentice (Section 3)

A person can be engaged as an apprentice only if:

a) he is 14 years of age for any designated trade

b) he is 18 years of age for designated trades related to hazardous industries

c) satisfies prescribed standards of education and physical fitness

 

  1. Standard of education for being engaged as an apprentice (Section 3(b), Rule 3)

Trade apprentice can be engaged if he has the minimum educational qualifications as specified in Schedule-1 to Apprenticeship Rules 1992

  • Graduate/Technician/Technician (Vocational) apprentice can be engaged if he satisfies one of minimum educational qualifications specified in Schedule-IA

 

  1. Standard of physical fitness (Section 3(b), Rule 4)

A person shall be eligible for being engaged as an apprentice if he satisfies the minimum standards of physical fitness specified in Schedule-II subject to exemption for certain cases as provided in Rule 4 of Apprenticeship Rules 1992

 

  1. Training places to be reserved for Scheduled castes/Schedules tribes (Section 3A, Rule 5(1))

In all designated trades, training places to be reserved for Scheduled Castes (SC)/Scheduled Tribes(ST) & where there is more than one designated trade in an establishment, training places shall be reserved also on basis of total number of apprentices in all designated trades in an establishment.

 

  1. Contract for apprenticeship (Section 4, Rule 6, 14(1))

No person shall be engaged to undergo apprenticeship training in a designated trade unless such person or, if he is a minor, his guardian has entered into contract of apprenticeship with employer.

Contract of apprenticeship shall be as per Format-1 as specified in Schedule III

 

  1. Period of Apprenticeship training (Section 6, Rule 7)

Period of apprenticeship training will be such as prescribed in Section 6 and Rule 7 of Apprenticeship Act 1961 and Apprenticeship Rules 1992

 

  1. Compliances w.r.t. Optional Trade (Section 5A, Rule 7A)

All regulations pertaining to engagement of apprentice in any Optional Trade are prescribed in Rule 7A of Apprenticeship Rules 1992

 

  1. Compensation for termination of Apprenticeship Contract (Section 7, Rule 8)

Where the contract of apprenticeship is terminated through failure on the part of any employer in carrying out the terms and conditions thereof, such employer shall be liable to pay the apprentice compensation of an amount equivalent to his three months last drawn stipend

 

  1. Number of apprentices for a designated trade (Section 8)

The Central Government shall prescribe the number of apprentices to be engaged by the employer for designated trade and optional trade.

 

  1. Practical and basic training of apprentices (Section 9(1))

Every employer shall make suitable arrangements in his workplace for imparting a course of practical training to every apprentice engaged by him.

 

  1. Training of apprentices where 500 or more workers are employed (Section 9(4))

Where an employer employs in his establishment five hundred or more workers, the basic training shall be imparted to the trade apprentices either in separate parts of the workshop building or in a separate building which shall be set up by the employer himself, but the appropriate Government may grant loans to the employer on easy terms and repayable by easy instalments to meet the cost of the land, construction and equipment for such separate building.

 

  1. Equipment to be used for practical training (Section 9(7),(7A))

In the case of an apprentice other than a graduate or technician apprentice technician (vocational) apprentice, the syllabus of and the equipment to be utilised for, practical training including basic training in any designated trade shall be such as may be approved by the Central Government in consultation with the Central Apprenticeship Council.

 

  1. Qualifications of persons placed in charge of the training of apprentices (Rule 9)

A person placed in charge of the training of apprentices by the employer shall possess the qualifications specified in Schedule IV to Apprenticeship Rules 1992

 

  1. Staffing pattern & qualifications of instructional staff for practical & basic training (Rule 9A)

Staffing pattern and qualifications of instructional staff for imparting practical and basic training to apprentices shall be as specified in Schedule IV A

 

  1. Payment of stipend to apprentices (Section 13, Rule 11)

The minimum rate of stipend payable to apprentices per month shall be as per the qualifications stipulated in the curriculum and as prescribed in Rule 11 of Apprenticeship Rules 1992 as amended by Apprenticeship (Amendment) Rules, 2019 read with Section 13

 

  1. Responsibility for payment of recurring costs (Section 9(8))

Recurring costs (including the cost of stipends) incurred by an employer in connection with [basic training] imparted to trade apprentices other than those referred to in clauses (a) and (aa)] of section 6 shall be borne—

(i) if such employer employs two hundred and fifty workers or more, by the employer;
(ii) if such employer employs less than two hundred and fifty workers, by the employer and the Government in equal shares up to such limit as may be laid down by the Central Government and beyond that limit, by the employer alone; and
(b) recurring costs (including the cost of stipends), if any, incurred by an employer in connection with practical training including basic training, imparted to trade apprentices referred to in clauses (a) and (aa) of section 6 shall, in every case, be borne by the employer;
(c) recurring costs (excluding the cost of stipends) incurred by an employer in connection with the practical training imparted to graduate or technician apprentices [technician (vocational) apprentices shall be borne by the employer and the cost of stipends shall be borne by the Central Government and the employer in equal shares up to such limit as may be laid down by the Central Government and beyond that limit by the employer alone [except apprentices who holds degree or diploma in non-engineering.

 

  1. Employer to impart related instructions to the apprentices (Section 10)

A trade apprentice who is undergoing practical training in an establishment shall, during the period of practical training, be given a course of related instruction (which shall be appropriate to the trade) approved by the Central Government in consultation with the Central Apprenticeship Council

 

  1. Hours of work for an apprentice (Section 15(1), Rule 12(1))

Total number of hours per week shall be 42 to 48 (including the time spent on Related Instruction)

 

  1. Timings for work for an apprentice (Section 15(1), Rule 12(2))

An establishment can engage apprentices of age 18 and above in normal working hours of establishment. Apprentices under the age of 18 shall be engaged in such training between hours of 8.00 am and 6.00 pm. Any relaxation in the same shall be approved by Apprenticeship Adviser, on case to case basis.

 

  1. Overtime work provisions for apprentices (Section 15(2))

No apprentice shall be required or allowed to work overtime except with the approval of Apprenticeship Adviser who shall not grant such approval unless he is satisfied that such overtime is in the interest of the training of the apprentice or in the public interest.

 

  1. Grant of leave and holidays to an apprentice (Section 15(3))

An apprentice shall be entitled to such leave and holidays as are observed in the establishment in which he is undergoing training.

 

  1. Employer’s liability for compensation for injury (Section 16)

If personal injury is caused to an apprentice by accident arising out of and in course of his training as apprentice, his employer shall be liable to pay compensation which shall be determined and paid as per Workmen’s Compensation Act, 1923, subject to the modifications specified in Schedule.

 

  1. Apprentices to maintain a Work diary (Rule 14(2))

Work diary in Format – 2 as specified in Schedule III of Apprenticeship Rules 1992 shall be maintained by each Trade apprentice and Optional trade apprentice and countersigned by his supervisor once in a week

 

  1. Register of attendance of apprentices (Rule 14(3))

Every employer shall maintain a register of attendance of the apprentices undergoing apprenticeship training in his establishment and action taken for irregular and unauthorised absence shall be recorded in the said register at the end of each month.

 

  1. Record of progress of apprentices (Section 19, Rule 14(4))

Employer shall maintain a record of work done and training undertaken by graduate, technician and technician (vocational) apprentices for each quarter and at end of each quarter shall send a report in Form Apprenticeship specified in Sch-III to Director, Regional Board of Apprenticeship Training.

 

  1. Employer to formulate a recruitment policy for apprentice (Section 22)

Every employer shall formulate its own policy for recruiting any apprentice who has completed the period of apprenticeship training in his establishment.

Punishment and Penalties

  1. If any employer contravenes the provisions of this Act relating to the number of apprentices which he is required to engage under those provision he shall be punishable with fine of five hundred rupees per shortfall of apprenticeship month for first three months and thereafter one thousand rupees per month till such number of seats are filled up. [Section 30(1)]
  2. If an employer failed to comply with certain conditions listed under Section 30 (2) he shall be punishable with fine of one thousand rupees for every occurrence.
  3. If any employer or any other person contravenes any provision of this Act for which no punishment is provided in section 30, he shall be punishable with fine which shall not be less than one thousand rupees but may extend to three thousand rupees. [Section 31]

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