Maharashtra Labor Laws: Intern Stipends, Distinctions between Trainees and Apprentices, and Standing - CiteHR

Could you share information regarding the precise stipend amount that is to be provided to interns, as per the guidelines established by the Maharashtra government? I am keen to comprehend the specific definitions of \'Trainee\' and \'Apprentice\'. I am interested in finding out if statutory benefits such as EPF, ESIC, EPT, leave, and bonus apply to these positions. Furthermore, what types of returns and records are associated with these acts/rules? I would value information on how a Standing Order is formulated and who needs to approve it for it to be deemed a legal Standing Order.
From India, Mumbai
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The stipend amount for interns in Maharashtra is not fixed and varies from organization to organization. However, the Maharashtra government encourages companies to provide a fair stipend that covers basic living expenses.

In terms of definitions, a 'Trainee' is an individual who is learning a particular skill or job under the supervision of a trained professional. An 'Apprentice', on the other hand, is someone who is undergoing a formal training program in a trade or profession, often involving practical work experience.

Statutory benefits such as EPF (Employee Provident Fund), ESIC (Employee State Insurance Corporation), EPT (Employee Pension Scheme), leave, and bonus are generally not applicable to Trainees and Apprentices. These benefits are typically provided to full-time employees. However, some organizations may choose to provide these benefits as part of their internal policies.

The returns and records related to these acts/rules include the monthly return of employees joining or leaving the organization, annual return of contributions, and half-yearly return of compliance with the ESI Act, among others.

A Standing Order is created by the employer and should include terms of employment such as work hours, wage rates, shift working, attendance and late coming, process of leave application, procedure for applying for holidays, closing and reopening sections of the industrial establishment, termination of employment, and the grievance redressal mechanism. The draft of the Standing Order is then submitted to the Certifying Officer (usually the Labour Commissioner or any officer appointed by the government) for approval. Once approved, it becomes a legal document and is binding on both the employer and the employees.

From India, Gurugram
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There is no stipend prescribed for interns under any labour enactment. Intern is a student who is undergoing on the job training in an establishment as part of curriculum of any University. What is very important is that it should be " as part of curriculum". The internship should have a prescribed duration fixed by the curriculum and after that the intern is expected to return to the institution to complete the program. Therefore, during the period of internship the person will be a student only. Moreover, an internship after completing the course is also not considered as internship because once the course ends the person ceases to be a student, and the institution/ University loses control over the student.

A Trainee is also a learner but he should be given the coverage of all Labour laws. Trainee is an employee who works only with the direct supervision of any other person. he should be given ESI, Bonus, EPF etc subject to the conditions relating to wages. His period of training should be considered as service period for deciding his terminal benefits including gratuity.

If the establishment has certified standing orders, and on the basis of it the company has engaged apprentices for a pre fixed , such persons may be excluded from EPF. Please note that they can be excluded only if the EPFO is satisfied that the proportion of such trainees is as per law.

Apprentices are trainees engaged following the Apprentice Act, 1961. There can be designated trades like technical trades of Turners, Welders, Fitters, Machinists etc and Optional trades. The trainees so engaged should be registered under the Central Govt Portal. There are different stipends prescribed by the Central govt in respect of Designated trade apprentices whereas for optional trade apprentices, you can pay a minimum stipend of 75% of the minimum wages fixed by the state governments. No ESI, PF, bonus shall be paid to these apprentices. The period of apprentice training period is not considered as service period for any terminal payments like gratuity.

Since the interns will not receive any stipend, the question of leaves does not arise. But at the same time, trainees other than apprentices are employees of the establishment, the leave as applicable to regular employees will be applicable to them. The Apprentices (real apprentices who are engaged as per Apprentice Act) are required to be given 12 days' leave in a year.

Standing Orders are rules and regulations for the smooth conduct of the operations of an organisation. These define the relationship between the employer and the employees. Therefore, it should be drafted only after taking in to to confidence the employees. It should be certified by the officer of the labour department not below the rank of Dy Labour Commissioner. The Certifying Officer will take the opinion of the trade union before certifying the standing orders. If you do not have a trade union, then the officer will conduct a referendum and chose a few workers as signatories.

From India, Kannur
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  • CA
    CiteHR.AI
    (Fact Checked)-Your explanation is accurate and comprehensive, covering the definitions of 'Intern', 'Trainee', 'Apprentice', and the formulation of a Standing Order. You've also correctly outlined the benefits and stipulations for each category. Good job! (1 Acknowledge point)
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