Apprenticeship Solutions

The Apprentices Act, 1961 was enacted and has been amended from time to time with an objective of fostering apprenticeship and address the inadequacies of on-the-job training imparted in institutions and to enhance employability of those entering employment market.

Highlights of Apprentices Act, 1961

• An apprentice is a person who has entered into a contract of apprenticeship with the employer for apprenticeship training under the Apprentices Act.
• As per Section 18 of the Apprentices Act, 1961, an apprentice is not a worker.
• The Apprenticeship Rules, 1992 clarify that apprenticeship is neither a job nor does it guarantee employment.
• Employers registered under the Apprentices Act, 1961 are exempt from EPF and ESI contributions for apprentices engaged by them.
• All establishments having a workforce (regular and contract employees) of 30 or more are mandated under the Apprentices Act, 1961 to implement apprenticeship programs by engaging 2.5%–15% of their total workforce every year.
• Companies engaging apprentices can also undertake skill training from their CSR funds over and above the requirement under the Apprentices Act.

Apprenticeship Schemes in India

• In pursuance of the objectives of the law, the Government of India is implementing two apprenticeship schemes:
  • NAPS (National Apprenticeship Promotion Scheme)
  • NATS (National Apprenticeship Training Scheme)
• NAPS is administered by the Ministry of Skill Development and Entrepreneurship (MSDE) in respect of designated and optional trades for the categories of Designated Trade Apprentices, Optional Trade Apprentices, Fresher Apprentices, and Technician (Vocational) Apprentices.
• NATS is administered by the Ministry of Education through the Board of Apprenticeship Training (BOAT) to offer apprenticeship to candidates possessing a Degree or Diploma in engineering. Graduates from general streams such as B.A., B.Sc., and B.Com. can also join as apprentices under NATS.
• Both NAPS and NATS share a common objective of developing well-educated youth who are industry-ready.
• Under NATS, the Government reimburses 50% of the minimum stipend amount stipulated under the Apprentices Act, 1961 to training establishments through the four regional Boards.
• Under NAPS, the Government shares 25% of the prescribed stipend, subject to a maximum of INR 1,500 per month per apprentice.
• The financial incentives provided by the Government indicate its strong commitment to the statutory implementation of NAPS and NATS.