What procedures are to be followed by an employer registered as Shops and Establishments to hire apprentices, laborers, and managers? Is the minimum wage limit applicable to apprentices and managers as well?
From India, Chennai
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2From India, Chennai
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Whether a company manufacturing electrical and electronic components for two-wheelers comes under a separate industrial category (other than the engineering industry) under the Maharashtra Minimum Wages Act of 1948?
From India, Pune
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From India, Pune
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There is no specified procedure to be followed for appointing employees. Get a standard procedure (and preferably fair procedure) set up and follow the same. Ensure that no part of your procedure is a violation of the relevant labor laws.
For apprentices, you need to follow the Apprentice Act. One part of the requirement is that you need to get in touch with the Apprentice Advisor and inform him of your desire to hire apprentices. He will check what you are doing, what type of training you can give and then notify how many apprentices you can hire. Once that is notified, you can speak to the relevant colleges (mostly ITIs) for giving a list of students who qualify for apprenticeship. They have their own procedure for hiring; you need to check that out also.
However, mostly apprentices are in the manufacturing sector. What is your line of work?
Minimum wages do not apply to apprentices taken under the Apprentices Act or under the Certified Standing Orders. In all other cases, minimum wages apply to all employees.
From India, Mumbai
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For apprentices, you need to follow the Apprentice Act. One part of the requirement is that you need to get in touch with the Apprentice Advisor and inform him of your desire to hire apprentices. He will check what you are doing, what type of training you can give and then notify how many apprentices you can hire. Once that is notified, you can speak to the relevant colleges (mostly ITIs) for giving a list of students who qualify for apprenticeship. They have their own procedure for hiring; you need to check that out also.
However, mostly apprentices are in the manufacturing sector. What is your line of work?
Minimum wages do not apply to apprentices taken under the Apprentices Act or under the Certified Standing Orders. In all other cases, minimum wages apply to all employees.
From India, Mumbai
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Apprentice has to be paid according to the stipend notified by the govt to this effects, latest attached herewith.
From India, Delhi
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From India, Delhi
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Dear Amravatiwala,
I think you must be aware that every state has its own Shop & Establishment Act as well as corresponding Rules. Therefore, you need to check the same concerning your state and its applicability to the areas. However, I want to make it clear that the Shops and Establishments Act and Rules do not specify any procedures or guidelines for hiring Apprentices, Laborers, and Managers. I have been dealing with the states of NCT of Delhi and Haryana, and I do not find any relevancy. Nonetheless, you may check the Act and corresponding Rules in your state.
Sh. Saswata Banerjee has elaborately explained the procedure required to hire apprentices under the Apprentice Act, 1961. Managers are appointed or hired by the management as per their requirement or through a recruitment agency. The recruitment of laborers is governed under the Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959, which stipulates compulsory notification of vacancies and submission of employment returns (ER-I and ER-II) by employers to the employment exchanges. However, the Act applies to all establishments in the public sector and to such establishments in the private sector engaged in non-agricultural activities and employing 25 or more workers.
Regarding your second query about the minimum wage limits applicable to Apprentices and Managers, our fellow member Sh. essykkr has explained that apprentices are required to be paid according to the revised rates of stipend notified by the DGET in the attached Gazette notification. Managers are generally not governed by the Minimum Wages Act.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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I think you must be aware that every state has its own Shop & Establishment Act as well as corresponding Rules. Therefore, you need to check the same concerning your state and its applicability to the areas. However, I want to make it clear that the Shops and Establishments Act and Rules do not specify any procedures or guidelines for hiring Apprentices, Laborers, and Managers. I have been dealing with the states of NCT of Delhi and Haryana, and I do not find any relevancy. Nonetheless, you may check the Act and corresponding Rules in your state.
Sh. Saswata Banerjee has elaborately explained the procedure required to hire apprentices under the Apprentice Act, 1961. Managers are appointed or hired by the management as per their requirement or through a recruitment agency. The recruitment of laborers is governed under the Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959, which stipulates compulsory notification of vacancies and submission of employment returns (ER-I and ER-II) by employers to the employment exchanges. However, the Act applies to all establishments in the public sector and to such establishments in the private sector engaged in non-agricultural activities and employing 25 or more workers.
Regarding your second query about the minimum wage limits applicable to Apprentices and Managers, our fellow member Sh. essykkr has explained that apprentices are required to be paid according to the revised rates of stipend notified by the DGET in the attached Gazette notification. Managers are generally not governed by the Minimum Wages Act.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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Dear Mr. Amravathiwala,
I agree with Mr. B.S. Kalsi who has advised you elaborately. Any establishment, whether under a Shops and Commercial Establishments Act, Factory Act, or any other manufacturing units registered under applicable enactments, shall follow the minimum rates of wages as applicable to the establishment, as specified by the State Government. This has already been mentioned as Unskilled, Semi-skilled, Skilled, Clerical, and Highly skilled. The wages may be paid as per the nature of work of the employee, whether they are laborers or managers, whoever may be on the payroll, and maintain the statutory records, which is a must.
As for engaging Apprentices and stipend, it has to be in accordance with the Apprenticeship Act. Pay the stipend as specified by the Government under the Act for the particular trade as specified and keep the authorities concerned informed. They are only apprentices and not employees.
Adoni Suguresh Sr. Executive (Pers and Adm) Rtd
From India, Bidar
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I agree with Mr. B.S. Kalsi who has advised you elaborately. Any establishment, whether under a Shops and Commercial Establishments Act, Factory Act, or any other manufacturing units registered under applicable enactments, shall follow the minimum rates of wages as applicable to the establishment, as specified by the State Government. This has already been mentioned as Unskilled, Semi-skilled, Skilled, Clerical, and Highly skilled. The wages may be paid as per the nature of work of the employee, whether they are laborers or managers, whoever may be on the payroll, and maintain the statutory records, which is a must.
As for engaging Apprentices and stipend, it has to be in accordance with the Apprenticeship Act. Pay the stipend as specified by the Government under the Act for the particular trade as specified and keep the authorities concerned informed. They are only apprentices and not employees.
Adoni Suguresh Sr. Executive (Pers and Adm) Rtd
From India, Bidar
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Hi,
I think there is an error in the last sentence of your post. Every employee other than an apprentice is covered under the Minimum Wages Act. It's a different point that managers will rarely be given less than the minimum wages. However, the act and the minimum wage limit do apply to them. So, you cannot designate someone as a manager and then pay him (say) ₹4000 per month in Mumbai.
From India, Mumbai
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I think there is an error in the last sentence of your post. Every employee other than an apprentice is covered under the Minimum Wages Act. It's a different point that managers will rarely be given less than the minimum wages. However, the act and the minimum wage limit do apply to them. So, you cannot designate someone as a manager and then pay him (say) ₹4000 per month in Mumbai.
From India, Mumbai
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Dear Saswata Banerjee,
Thank you for pointing out the discrepancy in my email. Your indication likely refers to my last sentence, which reads, "The managers are generally not governed under the Minimum Wages Act." You are correct in mentioning that "Every employee other than an apprentice is covered under the Minimum Wages Act. It's a different point that managers will rarely be given less than minimum wages." I do not dispute this. What you have stated is accurate, and considering the same, I intentionally used the word "generally" in my email.
Thank you for your feedback.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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Thank you for pointing out the discrepancy in my email. Your indication likely refers to my last sentence, which reads, "The managers are generally not governed under the Minimum Wages Act." You are correct in mentioning that "Every employee other than an apprentice is covered under the Minimum Wages Act. It's a different point that managers will rarely be given less than minimum wages." I do not dispute this. What you have stated is accurate, and considering the same, I intentionally used the word "generally" in my email.
Thank you for your feedback.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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Dear Sir,
Is it possible to hire apprentices through a third party? Would all compliance be handled by the same third party? If so, what are the requirements from the main employer/establishment side? Please elaborate.
Thanks,
Vinay Verma
From India, Ahmedabad
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Is it possible to hire apprentices through a third party? Would all compliance be handled by the same third party? If so, what are the requirements from the main employer/establishment side? Please elaborate.
Thanks,
Vinay Verma
From India, Ahmedabad
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Dear Mr. Vinay,
You cannot engage apprentices from a third party. Apprentices are to be engaged only by a skilled trainer who has graduated from the institute. They need to acquire further practical knowledge in their respective trade by imparting additional practical training. Hence, apprentices are engaged and covered by the Apprenticeship Act. The stipend is fixed by the Central Government and varies from trade to trade. This stipend, as set by the Government, must be paid to the respective apprentices so engaged, and they should not be treated as employees. There is no obligation on the employer to confirm or absorb them onto the company's payroll upon successful completion of the apprentice's training. If the employer is satisfied, he may choose to absorb them.
Regards,
Adoni Suguresh
Labour Laws Consultant
From India, Bidar
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You cannot engage apprentices from a third party. Apprentices are to be engaged only by a skilled trainer who has graduated from the institute. They need to acquire further practical knowledge in their respective trade by imparting additional practical training. Hence, apprentices are engaged and covered by the Apprenticeship Act. The stipend is fixed by the Central Government and varies from trade to trade. This stipend, as set by the Government, must be paid to the respective apprentices so engaged, and they should not be treated as employees. There is no obligation on the employer to confirm or absorb them onto the company's payroll upon successful completion of the apprentice's training. If the employer is satisfied, he may choose to absorb them.
Regards,
Adoni Suguresh
Labour Laws Consultant
From India, Bidar
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