The Apprentices Act, 1961: Skill Development Pathway

You aware that Government of India shows more important in developing Skilled manpower for our country to improve the economic development. The Apprentices Act, 1961, Amended in 1973 and 2021.

The Apprentices Act, 1961 (“Act”), plays a critical role in fostering skill development in India through structured apprenticeship programs. It offers a legal framework for training individuals in both designated and optional trades, ensuring they gain practical experience while meeting educational and physical standards. Employers are also obligated under the Act to provide structured training and maintain prescribed apprentice-to-worker ratios. Despite its noble intent, the Act poses certain challenges for businesses, especially in terms of compliance costs and administrative formalities, prompting some to favour informal internship arrangements over formal apprenticeships.

§? Eligible Employers:

§? Any establishment where trade, occupation or subject field in engineering or technology is carried out in terms of the Apprentices Act 1961 as amended from time to time.

§? The establishments should have strength of at least six employees/workers.

§? Self-certification by the employer that the selected apprentice is not related to him and this self-certification will be displayed on the portal.

Employers are eligible to engage apprentices if their establishment has at least 4 (four) workers. However, once an establishment has 30 (thirty) or more workers, it becomes mandatory for the employer to engage apprentices under the Act. This mandate is in place to ensure that larger companies actively contribute to the nation's skill-building initiatives. Employers with 30 (thirty) or more workers are required to engage at least 2.5% to 15% of their workforce as apprentices, including a minimum percentage of fresher apprentices.

§? Eligible Apprentices: A person

§? who has completed 14 years of age

§? who is physically fit

§? who possesses minimum educational qualification prescribed for a trade is eligible to undergo apprenticeship training.

Stipend and Financial Obligations

The stipend structure under the Act is a crucial element designed to ensure that apprentices are compensated fairly for their training while recognizing their skill level and qualifications. The Act sets out a minimum stipend that must be paid by the employer, with rates varying depending on the apprentice's educational qualifications. For instance, apprentices who are school pass-outs (Class 5th to Class 12th) are entitled to stipends ranging from INR 5,000 (Indian Rupees Five Thousand Only) to INR 7,000 (Indian Rupees Seven Thousand Only) per month, while diploma holders and graduate apprentices are entitled to higher stipends, typically INR 8,000 (Indian Rupees Eight Thousand Only) to INR 9,000 (Indian Rupees Nine Thousand Only). This structured payment system incentivizes individuals with higher qualifications to join the apprenticeship program while ensuring a baseline level of financial support for all apprentices. Additionally, the Act mandates incremental increases in the stipend during the apprenticeship, with a 10% increase in the second year and a 15% increase in the third year, encouraging long-term engagement in training programs.

Reservations for SC/ST/OBC:

§? In order to bring the youth belonging to weaker section into main stream, apprenticeship training seats are reserved for candidates belonging to SC/ST according to their percentage of population in the State. Seats are also reserved for youth belonging to OBCs.

§? In the Central Public Sector Undertakings and Union Territories, the seats reserved for SC/ST/OBCs are 15%, 7.5% and 27% respectively.

§? Candidates can contact the Regional Directorates of Apprenticeship Training (RDATs) located at Chennai, Faridabad, Hyderabad, Kanpur, Kolkata & Mumbai or the State Apprenticeship Advisors in each State/UT for training.

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For Graduate, Technician and Technician (Vocational) apprentices:

§? Graduate and Diploma Holders can undergo apprenticeship training as Graduate and Technician apprentices respectively, in 126 subject fields/trades designated under the ATS. The duration for apprenticeship training is 1 year.

§? The Vocational (10+2) pass outs can undergo apprenticeship training as Technician (Vocational) apprentices, in 128 subject fields/trades designated under the ATS. The duration for apprenticeship training is 1 year.

§? Candidates can contact Director, Board of Apprenticeship/ Practical Training (BOATs, under Ministry of HRD) located at Chennai, Kanpur, Kolkata & Mumbai may be contacted for training of Graduate, Technician & Technician (Vocational) apprentices.

Conclusion

While the Act aims to bridge the skills gap and create a sustainable workforce, its practical implementation is often seen as burdensome by employers, particularly smaller establishments. The decision to bypass compliance in favour of paying penalties reflects a broader tension between legal obligations and business realities. However, businesses that embrace the Act's provisions stand to gain a long-term competitive advantage by building a skilled workforce and avoiding potential legal repercussions. As enforcement tightens, companies may find that full compliance not only ensures legal security but also supports sustainable workforce development for the future.