Analyzing The Apprentices Act, 1961

Introduction

The Apprentices Act was presented before the Parliament in the year 1961 and it came in force in the year 1963. The Act was eventually amended in the year 1973, 1986, and most recently in the year 2014.

The Tamil Nadu High Court held that the Apprentices Act, 1961 was enacted to regulate and control of training of all apprenticeship. Thus, the main purpose of the Act is to provide practical training to technically qualified persons in various trades, promoting new skilled man-power.

With the new flagship program of Skill India of the new Indian government, the Act got added importance in the recent past.

However, the Act does not include Special Apprenticeship Training Programmes of the Government unless notified by the Official Gazette. Therefore, the so-called “internships” do not fall under this Act.

Industries falling under this Act

The provision applies to those industries or trades that have been notified by the Central Government in the Official Gazette and the date from which the application would commence would be as per the stipulations of those particular notifications. The Central Government has included almost all the industries under this Act by the publication of notification by the Official Gazette from time to time.

In pursuance of Section 4(a) of the Act, the Central Government has specified the following industries to which the provisions of the Act will affect:

1. Agricultural production
2. Plantations
3. Raising of livestock
4. Forestry and logging
5. Fishing (including collection of sea products)
6. Mining of coal lignite:  extraction of peat
7. Extraction of crude petroleum:  production of natural gas
8. Mining of iron ore
9. Mining of metal ores other than iron ore
10. Also Mining of uranium and thorium ores
11. Mining of non-metallic minerals not elsewhere  classified
12. Manufacture of food products
13. Manufacture of beverages, tobacco, and related products
14. Also Manufacture of cotton textiles
15. Manufacture of wool, silk, and man-made fiber textiles 
16. Manufacture of jute and other vegetable fiber textiles (except  cotton and coir)
17.  And manufacture of textile products (including wearing apparel)
18. Manufacturing wood and wood products, furniture and fixtures
19. Manufacture of paper and paper products and printing, publishing and allied industries
20. Manufacture of leather and products of leathers, fur, and substitutes of leather
21. Plus Manufacture of basic chemicals & chemical products (except products of petroleum and coal)
22. Manufacture of rubber, plastic, petroleum and coal products processing of nuclear fuel
23. Manufacture of non-metallic mineral products
24. Basic metal and alloy industries
25. Manufacture of metal products & parts,  except machinery and equipment
26. Manufacture of machinery and equipment  other than transport equipment
27. Also Manufacture of transport equipment and parts
28. Repair of capital goods
29. Electricity generation, transmission and distribution
30. Gas and steam generation and distribution through pipes
31. Waterworks and supply
32. Non-conventional energy generation and distribution
33. Construction
34. Activities allied to construction
35. Wholesale trade in wood, paper, skin, leather and fur, fuel, petroleum, chemicals, perfumery, ceramics, glass and ores, and metals
36. Wholesale trade  in all types of machinery equipment including transport equipment
37. And Wholesale trade  not elsewhere classified
38. Retail trade in textiles
39. Retail trade not elsewhere classified
40. Restaurants and hotels
41. Land transport
42. Water transport
43. Air transport
44. Storage and warehousing services
45. Communication services
46. Banking activities, including financial services
47. Provident and insurance services
48. Real estate activities
49. Business services not elsewhere classified
50. Public administration and defense services
51. Sanitary services
52. Education, scientific and research services
53. Community services
54. Recreational and cultural services
55. Personal services
56. Repair services
57. Persons without any affiliation to any   particular industry(including fresh entrants to the labor force)

Apprentice

According to Section 2(aa), an apprentice means “a person who is undergoing apprenticeship training in pursuance of a contract of apprenticeship”. In simple words an apprentice is a person who undergoes training under an employer to learn the skills and crafts of a particular trade.

Section 3 of the Act lays down the basic requirements of an apprentice. An apprentice should not be of the age below 14 and should satisfactorily meet the educational and physical fitness level required in that particular trade (which is different in different trades).

However, in the Apprentices (Amendment) Bill, 2014, the minimum age of an apprentice was increased to 18 for trades related to hazardous industries.

Apprentice Training

“Apprentice training” as defined in Section 2(aaa) is “a course of training in any industry or establishment undergone in pursuance of a contract of apprenticeship and under prescribed terms and conditions which may be different for different categories of apprentices”

According to Section 4 of the Act, a person shall be engaged in a particular trade if he has entered into a contract of apprentice with the employer and if a minor, a guardian on behalf of the minor. Each such contract will contain terms and conditions agreed by both the parties and terms and conditions should be in compliance with varying terms and conditions of the apprentice training for different trade laid down by the Central Government after consulting the Central Apprentice Council.

The contract of apprentice after proper execution will have to be registered by the Apprentice Advisor within the prescribed time.

The apprentices’ contract falls under two categories:

1. Trade apprentices
2. Graduate, Technician, and Technician (Vocational) Apprentices.

Reservation in Apprentice Training

The employer shall reserve in his training place for the Scheduled Castes and Scheduled Tribes (as described in Article 366 of the Indian Constitution), in accordance with the ratio of the total number of trainees.

Period of training:

The period of training of the apprentice will be determined in the contract in compliance with the Apprentices Act, 1961 and Apprentices Rule, 1962.

QUALIFICATION	AUTHORITY TO DETERMINE PERIOD OF TRAINING	PERIOD OF TRAINING
Trade apprentices have undergone institutional training in a school or other institution recognized by the National Council have passed the trade tests or examinations conducted by that Council or institution recognized by the Council	That particular National Council	As determined by the National Council.
Trade apprentices who have undergone institutional training in a school or other institution affiliated to or recognized by a Board or State Council of Technical Education or any other authority which the Central Government may, by notification in the official gazette specify in this behalf, have passed the trade tests or examinations conducted by that Board or State Council or authority.	That Board or State Council or authority	As determined by the Board or State Council or authority
Other than trade apprentices	Determined by the Apprentices Rules, 1962	6 months (Probation period)
Engineering Graduates, Diploma  holders and Vocational Certificate	Determined by the Apprentices Rules, 1962	1 year

Tests of the apprentices:

1. Trade Apprentices appointed by the National Council, who have completed shall undergo a test to determine the proficiency of the apprentice and shall be provided a certificate of proficiency on passing the test by the National Council.
2. Trade Apprentices appointed by the State Council, who have completed shall undergo a test to determine the proficiency of the apprentice and shall be provided a certificate of proficiency on passing the test by the State Council.
3. Graduate or Technician or Technical (Vocational) Apprentice appointed by Regional Board who has completed the apprentice training to the satisfaction of the Regional Board shall be provided with the certificate of proficiency.
4. Any other graduate, the employer will from time to time determine the proficiency of the apprentices.

Extension of apprentices training period:

APPRENTICES	CAUSE OF NOT COMPLETING THE TRAINING	AUTHORITY TO DETERMINE EXTENSION OF TRAINING	PERIOD OF EXTENSION OF TRAINING
Trade Apprentices who passed the technical tests held by the National Council or State Council	Unable to complete the training period or  to take the final test owing to illness or other circumstances beyond his  control	Establishment with consultation of Apprenticeship Advisor	Extend  the  period  of his apprenticeship until he completes the full apprenticeship  course  and  the next  test  is  held  if  so  required by the Apprenticeship Adviser
Trade Apprentices who passed the technical tests held by the National Council or State Council	Failed in the final test	Establishment with consultation of Apprenticeship Advisor	Extend the period of his apprenticeship until he completes the full apprenticeship course and the next test is held if so required by the Apprenticeship Adviser. However, if the apprentice fails in the 2nd test also, the period of apprenticeship shall not be extended.
Trade Apprentices who passed the technical tests held by the National Council or State Council	Unable  to   complete  the  period  of apprenticeship training due to strike  or  lockout or  layoff  in  an  establishment	Establishment according to Apprentice Rules, 1962	The period of his apprenticeship training shall be extended for  a  period equal  to the period of strike or lockout or layoff or maximum period of 6 months whichever is less
Graduate/Technician/Technician  (Vocational) Apprentice	Unable  to   complete  the  period  of apprenticeship training due to strike  or  lockout or  layoff  in  an  establishment	Establishment according to Apprentice Rules, 1962	The period of his apprenticeship training shall be extended for  a  period equal  to the period of strike or lockout or layoff or maximum period of 6 months whichever is less

Termination of apprenticeship contract:

The Apprenticeship Contract will be terminated after the period so prescribed in the contract. After the termination, the employer is not ought to offer any employment to the apprentice nor is the apprentice bound to accept any offer of employment unless expressly mentioned in the Apprenticeship Contract. However, in such a case where the offer of employment is expressly mentioned in the contract, both the parties are bound by it. But further, if the remuneration so mentioned in the contract is unreasonable according to the Apprenticeship Advisor, he shall revise the same.

Either party can however terminate the contract by writing an application to Apprentice Advisor and notify the other party by post before the period of apprenticeship ends.

The Apprentice Advisor can terminate the contract by order if he is satisfied that either party or either party have failed to carry out the terms and conditions of the contract and is desirable for the interests of the parties.

If the employer fails to carry out the terms and conditions in the contract and has caused damages to the apprentice, he is bound to compensate for the damages.

Similarly, if the apprentice has failed to carry out the terms and conditions in the contract and has caused damages to the employer, he or his guardian if he is a minor is bound to return all the costs of training to the employer.

The Apprentice Advisor if terminates a contract before the completion of the period of the apprenticeship contract, for the default of the employer, the apprentice if enters into a new apprenticeship contract with some other employer, the Apprentice Advisor can permit to include the number of days of apprentice training with the previous employer be counted with the period of the new apprenticeship contract.

The dispute between the Employer and Apprentice

According to Section 20 of the Act, any dispute between the employer and apprentice will be settled by the Apprenticeship Advisor. Any aggrieved party to the decision of the Apprenticeship Advisor can appeal to the Apprenticeship Council and shall be determined by the Committee of the Council appointed for this purpose.

However, subject to the decision made by the Committee of Council, the decision of the Apprenticeship Advisor will be final.

Compensation on Personal Injury

If the Apprentice has any personal injury caused by accident during the course of his training, the employer is liable to pay compensation as determined by the Workmen’s Compensation Act, 1923.

In the case of factories and mines, provisions the health, safety, and welfare of the Factory’s Act, 1948, and the Mines Act, 1952 shall extend to the apprentice of such factory or mine.

Hours of Work

The daily or the weekly hours and the prescribed holidays shall be as per the discretion or policy of the employer

However, no apprentice shall be appointed to work for extra hours beyond the policy of the employer as in the contract without the approval of the Apprentice Advisor.

Position of the Apprentice

An apprentice is a trainee and not a worker of the establishment, the provisions of any law with respect to any labor like ESI, PF, Industrial Disputes, etc shall not apply to the apprentice.

Payment of the apprentice:

An apprentice shall be given stipend at a rate not less than the prescribed minimum rate by the Central Government or the rate which was being paid by the employer on 1^st January 1970 to the category of apprentices under which such apprentice falls, whichever is higher as may be specified in the contract of apprenticeship.

The stipend so specified shall be paid at such intervals and subject to such conditions as may be prescribed.

However, the apprentice is not eligible for payment of any piece of work or any bonus.

Offences and punishments {Section 30, 31, 32}:

Type of Employer	Offense	Who is Liable	Punishment
Employer other than a company	engages as an apprentice a person who is not qualified for being so engaged	EMPLOYER	Fine so determined
Employer other than a company	fails to carry out the terms and conditions of a contract of apprenticeship	EMPLOYER	Fine so determined
Employer other than a company	contravenes the provisions of this Act relating to the number of apprentices which he is required to engage under those provisions	EMPLOYER	Fine so determined
Employer other than a company or any person(including a company)	Was required to furnish any information but have furnished false information or have willfully neglected in furnishing information	EMPLOYER/PERSON/COMPANY	Fine as determined
Employer other than a company or any person(including a company)	requires an apprentice to work overtime without the approval of the Apprenticeship Adviser	EMPLOYER/PERSON/COMPANY	Fine as determined
Employer other than a company or any person(including a company)	employs an apprentice on any work which is not connected with his training,	EMPLOYER/PERSON/COMPANY	Fine as determined
Employer other than a company or any person(including a company)	makes payment to an apprentice on the basis of piece-work,	EMPLOYER/PERSON/COMPANY	Fine as determined
Employer other than a company or any person(including a company)	requires an apprentice to take part in any output bonus or incentive scheme	EMPLOYER/PERSON/COMPANY	Fine as determined
Company with consent/negligence of  any director, manager, secretary, or another officer of the company, such director, manager, secretary, or another officer	ALL THE ABOVE	SUCH DIRECTOR, MANAGER, SECRETARY, OR OTHER OFFICER OF THE COMPANY, SUCH DIRECTOR, MANAGER, SECRETARY, OR OTHER OFFICER	Fine as determined

MAJOR CHANGES IN APPRENTICES (AMENDMENT) BILL, 2014

1. The bill brought an amendment to the definitions of: (i) designated trade, (ii) graduate or technician apprentice, (iii) trade apprentice, (iv) industry, and (v) worker.
2. The bill added two new  definitions: (i) optional trade, and (ii) portal-site
3. Ans the bill adds that the minimum age for apprenticeship in designated trades related to hazardous industries shall be 18 years whereas in all other cases it remains 14.
4. Also the bill states that the hours of work and leave will be as per the discretion or policy of the employer which was earlier according to the Act.
5. The bill repeals the imprisonment for offenses under this Act and confines it to only fine.
6. The number of apprentices to be engage by an employer in a particular trade will be solely decide by the Central Government, which was earlier with the consultation of the Central Apprenticeship Council.