Apprentices Act
Meaning & Definition
The Apprentices Act is a statutory framework to govern training for apprentices within the industry and various establishments, creating a structured format for providing hands-on experience along with theoretical classroom instruction to those recently graduated from school, college (or university), or who have completed an approved course in trade training. Additionally, this will assist with building a qualified workforce for most companies while providing apprentices with on-the-job experience in their chosen career.
Significance of apprentices act:
- Improves youth skills development and employability.
- Provides organisations with the ability to create a future-ready workforce at an affordable cost.
- Gives organisations a legally defined way to utilise apprentices rather than informal trainees.
- Assists industries in being able to meet the skills gap within each sector.
- Allows industries and government to support programs such as Skill India and upskill their workforce to meet today’s demands.
Compliance & Policy Considerations
The legality of apprenticeships (in India) is based on the Apprentices Act of 1961, which has been amended over the years. The Act applies to the employers of apprentices in regulated occupations. The following obligations are placed upon employers:
- Registering all apprentices with the Apprenticeship Portal.
- Paying a defined stipend rate.
- Following timeframes for training, completing a training plan, and reporting back to the government.
Failure to comply with these requirements may result in penalties under the Apprentices Act.
