Hire Apprentices: Government Sends Notices to Nearly 180,000 Companies

The Actual Notice

Recently, approximately 180,000 Indian businesses received notifications from the Ministry of Skill Development and Entrepreneurship (MSDE) pushing them to hire apprentices. This action is a component of the government's campaign to support the Apprenticeship Training Scheme, which attempts to close the skills gap and provide the nation's youth with practical experience. This measure seeks to guarantee that businesses meet their legally mandated hiring quotas for apprentices, as specified in the Apprenticeship Act.

According to the source, "The notices serve as a reminder to companies of their obligations under the Act," as stated by Business Standard. "The goal is to increase the uptake of apprenticeship programmes and provide valuable on-the-job training opportunities for young Indians."

Moreover, the Congress party and opponents had announced that a "Right to Apprenticeship Law" would be included in their electoral manifesto, which aligns with this plan. The purpose of the proposed legislation is to provide graduates with a first employment guarantee through formal apprenticeship programmes.

Programmes for Apprenticeship Are Needed to Upskill Youth

With a median age of 28.7 years, India's youthful population offers both opportunities and challenges. Despite the sizeable workforce in the nation, many do not possess the skills needed to satisfy the demands of the labour market today. To address this problem, the Apprenticeship Training Scheme offers young people organised on-the-job training that enables them to obtain real-world experience and build transferable skills that are relevant to the business.

What to Anticipate

The correspondence dispatched to the establishments delineates the advantages of the Apprenticeship Training Scheme, encompassing monetary incentives and tax advantages for enterprises that recruit apprentices. Additionally, the government has expedited the procedure, which facilitates the onboarding and training of apprentices by businesses. The MSDE states that by 2030, 10 million apprentices—up from the current 3.6 million—are to be trained. To accomplish this, the government is collaborating closely with trade associations and industry bodies to promote increased private-sector participation. Companies are probably urged to assess their apprenticeship programmes and make sure they are fulfilling their recruiting quotas by the notices they receive from the MSDE. Businesses risk penalties if they don't follow the Apprenticeship Act. A deficiency in apprentices is penalised under Section 30 of the Act by a fine of Rs 500 per apprenticeship for the first three months and Rs 1,000 per month after that, until the prescribed number of seats are filled.

Future Prospects

The government wants to upskill young people to increase employability, increase the nation's competitiveness, and stimulate economic growth. Nearly a million apprentices will be trained under the National Apprenticeship Promotion Scheme in FY24, bringing the total number of apprentices under the programme to 4 million since it was introduced in August 2016 to promote apprenticeship.

It is anticipated that more businesses will join the Apprenticeship Training Scheme as the government continues to push for increased participation, offering young people invaluable chances to develop their careers and obtain real-world experience.

https://www.business-standard.com/india-news/hire-apprentices-govt-sends-notices-to-nearly-180-000-companies-124031700495_1.html