Legal clarification regarding the PM Internship Scheme and the applicability of Labor Laws on Interns.
Jana Venkata Ramakrishna
Associate Vice President- Human Resources at Indian Hotels Company Limited
The document is an official memorandum from the Ministry of Labour & Employment, Government of India, dated 27th September 2024. It provides legal clarification regarding the PM Internship Scheme and the applicability of labor laws on interns.
Key points include:
1. EPF Contribution: The document states that EPF (Employees' Provident Fund) contributions are required for individuals employed for wages, as defined under the EPF & MP Act, 1952, in accordance with the terms of their contract.
2. Internship Nature: It clarifies that the internship does not constitute employment for the purposes of wage payment, as outlined in a letter from the Ministry of Corporate Affairs dated 18th September 2024. The internship allowance of ?4500 is directly paid to the intern by the Government of India.
3. Interns vs. Employees: Based on the provided legal provisions and the internship's structure, it concludes that interns under the PM Internship Scheme do not qualify as employees.
The document emphasizes that this clarification is made with the approval of the Competent Authority and is addressed to the Ministry of Corporate?Affairs.