APPRENTICES ACT, 1961

 
CHAPTER I-PRELIMINARY
PURPOSES
An act to provide for the regulation and control of training of apprentices and for matters
connected therewith. Objective is to promote new skilled manpower.
 
LEGAL POSITION OF APPRENTICES: 
�€€€€€€€ An apprentice is not a workman during apprentice training. [sec 18].
�€€€€€€€ Bonus, PF, ESI, Gratuity, IDA are not applicable to the apprentice.
�€€€€€€€ BUT,
o       Factories Act provisions regarding Health, welfare and safety will
apply to him.
o       If he suffers an injury due to his employment, he is entitled to get
compensation as per WCA.
 
APPLICABILITY
This act does NOT apply to:
-         Any area or industry unless a notification in the official gazette has been given by
the central government for application of the same
-         Any such special apprenticeship scheme for imparting training notified by the
central govt.
 
IMPORTANT DEFINITIONS
 
2(aa) Apprentice: a person who is undergoing apprenticeship training in pursuance of a contract
of apprenticeship
 
2(aaa) Apprenticeship Training:  course of training in any industry or� establishment
-         In pursuance of a contract of apprenticeship
-         Under prescribed terms and conditions
 
Sec 2(e)Designated trade:  Any trade or occupation or any subject field in engineering or
technology or any vocational course, specified by the Central Government as designated
 
2 ( k) Industry: Means any industry or business in which trade, occupation or subject field in
engineering, technology or vocational course may be specified as a designated trade
 
Sec 2(pp) Technician (vocational) apprentice: a person who holds or is undergoing training in
order to hold a certificate in vocational course involving 2 years of study after the completion of
the secondary stage of school education ( recognized by the All-India Council ) and undergoes
training in any such vocational course
 
Sec 2(q) Trade Apprentice: Who undergoes training in any specified trade or profession.
 
Sec 2(r) Worker: Any person who is:
- employed for wages
- gets wages directly from the employer
 
Hence, does not include apprentices
 
CHAPTER II - APPRENTICES AND THEIR TRAINING
 
SEC 3: PERSONAL QUALIFICATIONS:
�€€€€€€€€ should be more than 14 years of age
�€€€€€€€€ satisfies standards of education and physical fitness as prescribed.
 
SEC (4) CONTRACT OF APPRENTICESHIP:
 
1. Apprenticeship training can be undergone only after signing the contract of apprenticeship
with the employer, by:
�€€€€€€€€ Apprentice himself if he/she is a major or
�€€€€€€€€ The guardian in case he/she is minor
 
2. Training is deemed to have commenced on the date of entering into the contract
 
3. Every contract of apprenticeship shall contain terms and conditions, provided they are not
contrary to the provisions of this act
4. Contract shall be sent by the employer to the apprenticeship advisor for registration within the
specified period
 
5. Registration will be granted only if:
�€€€€€€€ the person is qualified for the said training
�€€€€€€€ the industry is specified
 
SEC 5: NOVATION OF CONTRACT
If the employer is for any reason, unable to fulfill his obligations under the contract then
�€€€€€€€ Apprentice or his guardian, the previous employer and any other
employer enter into a contract
�€€€€€€€ This discharges the previous employer from any further obligation
�€€€€€€€ The apprentice works under the new employer for the un-expired
portion of the period of service.
o       Approval of the apprenticeship advisor is required 
 
SEC 6: PERIOD OF APPRENTICESHIP TRAINING
�€€€€€€€ Trade apprentices:
o       period: as determined by that council or institution
�€€€€€€€ Graduate apprentices
o       Period: as prescribed
 
SEC 7: TERMINATION OF CONTRACT
�€€€€€€€ On the expiry of the period
�€€€€€€€ On an application made by any of the parties to the Apprenticeship
Advisor
o       Copy of the same is sent to the other party
�€€€€€€€ After considering the contents and objections if any, the advisor may
terminate the contract
o       When failure to continue is on the employer, the prescribed
compensation has to be paid
o       When failure is on the part of the apprentice, cost of training has
to be refunded to the employer and the amount is to be determined by the
Apprenticeship advisor.
 
SEC 8: NUMBER OF APPRENTICES FOR A DESIGNATED TRADE
�€€€€€€€ Ratio (trade apprentices to workers other than unskilled workers) to be
determined by Central Government
�€€€€€€€ This ratio may be different for different trades
�€€€€€€€ Employer can engage more apprentice trainees than the specified
number
�€€€€€€€ The Apprenticeship Advisor can reduce the number of trainees
keeping in view of a more realistic employment potential, but this number cannot be
less than 20% of the original specified ratio.
 
SEC 9: PRACTICAL AND BASIC TRAINING OF APPRENTICES
The employer has to make arrangements for practical training of apprentice.
�€€€€€€€ Govt will share the costs of paying stipends upto 50%
o       if the employees are less than 250.
�€€€€€€€ Employer bears the full cost
o       If employees >= 250 workmen
 
SEC 11: OBLIGATIONS OF EMPLOYERS
�€€€€€€€ To provide the apprentice with the training in his trade;
�€€€€€€€ If the employer is not himself qualified in the trade, he is to ensure that a
person who possesses the prescribed qualifications is placed in charge of the training of
the apprentice;
�€€€€€€€ Employer to provide adequate instructional staff for imparting practical and
theoretical training and facilities for trade test of apprentices; and
�€€€€€€€ Employer to carry out his obligations under the contract of apprenticeship.
 
SEC 13: PAYMENT TO APPRENTICES
�€€€€€€€€€€€€€€€€€€€ At a rate not less than the prescribed minimum rate
�€€€€€€€€€€€€€€€€€€€ Shall not be paid on the basis of piece work and is not
eligible for bonus
 
 SEC 14: HEALTH
The provisions of Chapters III, IV and V of the Factories Act, 1948 (63 of 1948), shall apply in
relation to the health, safety and welfare of the apprentices as if they were workers within the
meaning of that Act
 
SEC 16: EMPLOYER'S LIABILITY FOR COMPENSATION FOR INJURY
�€€€€€€€ in accordance to the provisions of workmen�s compensation act.
 
SEC 18: APPRENTICES ARE TRAINEES AND NOT WORKERS.
Save as otherwise provided in this Act,

(a) every apprentice undergoing apprenticeship training in a designated trade in an establishment

shall be a trainee and not a worker; and
�(b) the provisions of any law with respect to labour shall not apply to or in relation to such
apprentice.
 
SEC 20: SETTLEMENT OF DISPUTES
�€€€€€€€ Disputes to be referred to the apprentice advisor.
�€€€€€€€ Any person aggrieved with the decision of the Advisor may appeal within
30 days to the Apprenticeship council and the decision of the council shall be final.
  
SEC 22: OFFER AND ACCEPTANCE OF EMPLOYMENT.
�€€€€€€€ Offering employment to the apprentice is NOT mandatory for employert
�€€€€€€€ Similarly it is not obligatory for the apprentice to accept employment if
offered
o       unless the same is stated in the contract.
RELEVANT CASES:
1. �Narendra Kumar Vs State of Punjab 1985
 
Facts:
�€€€€€€€€ 22 diploma holders did apprenticeship in Punjab State Electricity Board for
1 year.(1981-1982)
�€€€€€€€€ 1983-Ministry of Labor issued instructions that minimum 50% of direct
recruitment vacancies should be filled by trained apprentices
�€€€€€€€€ The trained apprentices appealed to HC but plea was rejected stating that
together with SC/ST reservation(47%) almost 100% of vacancies would be filled which is
against law
 
SC quashed HC judgment
�€€€€€€€€ Taking trained apprentices is not reservation
�€€€€€€€€ Contractual obligation to both employer and apprentice
�€€€€€€€€ Appeal was allowed and appelants absorbed as junior engineers
 
2. U.P. State Road Transport Corporation���
� Judgment:
�€€€€€€€ no need to absorb apprentices after their training period.
�€€€€€€€ Only preference needs to be given.
 
 IMP COMMENT: Summer trainees are not apprentices.
 
  
Page updated by Naqi Abbas on February 1, 2006
Page updated by Anitha B on January 13, 2005