Dear HR Professionals,
I need clarity on a few points related to the hiring of trainees.
We are going to hire Diploma in Automobile Engineering students (final year result awaited) and ITI (final year result awaited). These students would be kept on training for one year as Diploma Engineer Trainee (DET) and Trainee in Mechanical.
I have a few queries (considering laws/legal obligations associated with them):
1. Is there any difference in Trainees or apprentices, i.e., any legal obligation associated with the terminology as an employer?
2. Is it compulsory to take them on the payroll during the training period of 1 year, or may they be kept simply as trainees without being added to the payroll?
3. Should their compensation be as per the minimum scale of that grade of a regular employee, or may they be on slightly lower pay?
4. What about leave and holidays? Holidays may be given as per the yearly list of holidays, but is it compulsory to give all kinds of leave such as CL, sick leave, etc.?
5. What are the rules on deduction/contribution towards PF/ESI of trainees?
Hope I have made my queries clear and would be getting help from my dear friends on citehr.
Thanks and regards,
Ashima Goyal
Manager HR
From India, Delhi
1I need clarity on a few points related to the hiring of trainees.
We are going to hire Diploma in Automobile Engineering students (final year result awaited) and ITI (final year result awaited). These students would be kept on training for one year as Diploma Engineer Trainee (DET) and Trainee in Mechanical.
I have a few queries (considering laws/legal obligations associated with them):
1. Is there any difference in Trainees or apprentices, i.e., any legal obligation associated with the terminology as an employer?
2. Is it compulsory to take them on the payroll during the training period of 1 year, or may they be kept simply as trainees without being added to the payroll?
3. Should their compensation be as per the minimum scale of that grade of a regular employee, or may they be on slightly lower pay?
4. What about leave and holidays? Holidays may be given as per the yearly list of holidays, but is it compulsory to give all kinds of leave such as CL, sick leave, etc.?
5. What are the rules on deduction/contribution towards PF/ESI of trainees?
Hope I have made my queries clear and would be getting help from my dear friends on citehr.
Thanks and regards,
Ashima Goyal
Manager HR
From India, Delhi
Hello,
There is a difference between a trainee and an apprentice. An apprentice is a course defined by the organization itself, whereas hiring a trainee is not part of the organization's module. It depends on the workload in the department.
A trainee cannot be hired as part of the payroll. If they are, they will come under all statutory laws (PF/ESI/PT/LWF). You can decide on a stipend amount (which would be half of the minimum wages amount).
Trainees or apprentices do not fall under the company's leave policy. Exemptions on leave depend on the company's own policy. A manual register can be maintained for the trainees, and their entry/exit times can be noted down. If they take leave beyond the exempted limit, you can deduct the money from their stipend.
I hope the points above have somewhat addressed your queries.
From India, Delhi
There is a difference between a trainee and an apprentice. An apprentice is a course defined by the organization itself, whereas hiring a trainee is not part of the organization's module. It depends on the workload in the department.
A trainee cannot be hired as part of the payroll. If they are, they will come under all statutory laws (PF/ESI/PT/LWF). You can decide on a stipend amount (which would be half of the minimum wages amount).
Trainees or apprentices do not fall under the company's leave policy. Exemptions on leave depend on the company's own policy. A manual register can be maintained for the trainees, and their entry/exit times can be noted down. If they take leave beyond the exempted limit, you can deduct the money from their stipend.
I hope the points above have somewhat addressed your queries.
From India, Delhi
Trainees can be hired as a part of the payroll, but you may list them separately as receiving a stipend, which is still a part of the payroll. This practice is actually incorrect.
Ensuring their inclusion in statutory registers will make the company liable to pay the applicable compliance, which is acceptable.
If you distinguish between trainees and apprentices, then trainees should be paid the minimum wages of that particular state and included in the company's payroll. On the other hand, apprentices should receive a stipend according to the company policy, which is an out-of-pocket expense. Paying them less than half of the minimum wage is incorrect.
Trainees should be put on the company's payroll and are entitled to leave as per the stipulated policy.
You can keep a combined attendance register with the on-roll employees for trainees and apprentices.
Best Regards,
Nandan S Negi
From India, Delhi
Ensuring their inclusion in statutory registers will make the company liable to pay the applicable compliance, which is acceptable.
If you distinguish between trainees and apprentices, then trainees should be paid the minimum wages of that particular state and included in the company's payroll. On the other hand, apprentices should receive a stipend according to the company policy, which is an out-of-pocket expense. Paying them less than half of the minimum wage is incorrect.
Trainees should be put on the company's payroll and are entitled to leave as per the stipulated policy.
You can keep a combined attendance register with the on-roll employees for trainees and apprentices.
Best Regards,
Nandan S Negi
From India, Delhi
Hello,
1. ITI Apprentice comes under the "Apprenticeship Act 1961." You may not require them to be inducted on Payroll.
2. There is also a scheme for Diploma/Degree (both technical and non-technical) Apprenticeship, i.e., vocational and Graduate Apprentice under the "Apprenticeship Act 1961." You may also engage the employee under this scheme and treat them as a "Trainee."
3. The advantage of the above is that the employer has no legal obligation in case of their stipend/salary, etc. It does not bind the employer to continue them after their apprenticeship ends.
Thanks and Regards,
Prashant Borse
From India, Nasik
1. ITI Apprentice comes under the "Apprenticeship Act 1961." You may not require them to be inducted on Payroll.
2. There is also a scheme for Diploma/Degree (both technical and non-technical) Apprenticeship, i.e., vocational and Graduate Apprentice under the "Apprenticeship Act 1961." You may also engage the employee under this scheme and treat them as a "Trainee."
3. The advantage of the above is that the employer has no legal obligation in case of their stipend/salary, etc. It does not bind the employer to continue them after their apprenticeship ends.
Thanks and Regards,
Prashant Borse
From India, Nasik
In AP, those who attend the apprenticeship program are covered under the Apprentices Act of 1961. The organization should pay a stipend to the apprentice every month. The government recommends firms to provide stipends for IT students participating in the apprenticeship program.
- 1st year: $2500
- 2nd year: $3000
From India, Visakhapatnam
- 1st year: $2500
- 2nd year: $3000
From India, Visakhapatnam
Hello,
1. I have more clarification about the stipend paid to the apprentice. The employer has to pay the stipend to the apprentice during the apprenticeship period, and that amount is much less than the current prevailing rates. The government prescribes the rates of the stipend. Employer need not pay PF, ESI, or statutory payments on the stipend.
2. As mentioned above in my earlier reply, we may induct graduate apprentices and treat them as trainees. For graduate/vocational apprentices, the government pays 50% of the stipend to the apprentice.
3. An employer may engage a trainee, excluding them from statutory obligations (such as PF, ESI, or other benefits) in the organization. Many organizations practice this. However, I think it is not a fair policy.
Thanks & Regards, Prashant Borse
From India, Nasik
1. I have more clarification about the stipend paid to the apprentice. The employer has to pay the stipend to the apprentice during the apprenticeship period, and that amount is much less than the current prevailing rates. The government prescribes the rates of the stipend. Employer need not pay PF, ESI, or statutory payments on the stipend.
2. As mentioned above in my earlier reply, we may induct graduate apprentices and treat them as trainees. For graduate/vocational apprentices, the government pays 50% of the stipend to the apprentice.
3. An employer may engage a trainee, excluding them from statutory obligations (such as PF, ESI, or other benefits) in the organization. Many organizations practice this. However, I think it is not a fair policy.
Thanks & Regards, Prashant Borse
From India, Nasik
I suggest employing an Apprentice and placing them on a contract for 11 months. A contract fee to cover traveling expenses can be paid. After the successful completion of 11 months, you can either transition them to permanent roles, extend the contract with a one-month break, or terminate the contract based on your company's requirements.
From India, Malappuram
From India, Malappuram
Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.