Unit 1

Chapter 4
Apprentice Act, 1961
Development of human resource is crucial for the industrial development of any nation.
Up-gradation of skills is an important component of HRD. Training imparted in
institutions alone is not sufficient for acquisition of skill and needs to be supplemented by
training in the actual work place.

OBJECTIVES

APPRENTICE ACT,1961 was enacted with the following objectives:-

To regulate the programme of training of apprentices in the industry so as to
conform to the syllabi, period of training etc. as laid down by the Central
Apprenticeship Council; and
To utilize fully the facilities available in industry for imparting practical
training with a view to meeting the requirements of skilled manpower for
industry – Now we will discuss the act:-
Sec 1. This Act is called Apprentices Act, 1961 and comes to force on 1sr March
1962. This Acts extend to the whole of India. The provisions of this Ac shall not
apply to :-
1. Any area or to any industry which is not notified to the Central
Government.
2. Any special apprenticeship schemes for imparting training
to apprentices as notified by Central Govt. in Official Gazette
separately.

Definitions:
 a) All India Council : All India Council of Technical Education established
by Govt. of India.
b) Apprentice : A person who is undergoing apprenticeship in pursuance of
contract of apprenticeship
c) Apprenticeship training: A course of training in any establishment or
industry
d) Apprenticeship Advisor : Central Apprenticeship Advisor or the State
Apprenticeship Advisor appointed under the Act.
e) Apprenticeship Council: Central Apprenticeship Council or
Apprenticeship Council (State) under the provisions of the Act.

Appropriate Govt

1. In relation to : The Central Apprenticeship Council or Regional Boards or

practical training of graduate/technical apprentice or technician apprentice and
other establishments Central Government.
2. In relation to State Apprentice Council or any other establishment not specified
under Central Govt establishment, the state government.
Board or State Council of Technical Education
Designated Trade
Employer
Establishment - Public as well as Private
Graduate
Industry
National Council -> National Council for Training in Vocational Trade
Prescribed
Regional Board
State
State Council
Stat Govt
Technician
 Trade Apprentice

OBLIGATION OF EMPLOYER

 Every employer is under obligation to take apprentice in the prescribed ratio to

the skilled workers employment in different trades.
 In every trade there will be reserved places for scheduled caste / scheduled tribes
 Ratio of trade apprenticeship to workers shall be determined by Central
Government but employer can engage more number of apprentices than the
number of persons advised by the Central Government of India. .
 The employer has to make arrangements for practical training apprentices
 Employer will pay stipends to apprentices at prescribed rates
 If the employees are less than 250, the Government shall shares 50 % of the cost.
 If the employer is employing more than 250 workers, he has to bear total cost of
training.

WHO CAN BE APPRENTICE –

Apprentice should be of minimum age of 14 years and he/ she should satisfy the
standard of education as physical fitness as prescribed. ( Section 3)
DURATION OF TRAINING
Duration of training period and ratio of apprentices to skilled workers for different
trades has been prescribed in Apprentice Rule 1991
Duration of apprenticeship may be from 6 months to 4 years depending on the trade
prescribed by rules
National Council determines period of training for training in Vocational Trade
(established by Govt of India)

CONTRACT WITH APPRENTICE

  Apprentice appointed has to execute an contract of apprenticeship with
employer
 The Contract has to be registered with the Apprenticeship Advisor.
 If apprentice is minor, the agreement should be signed by guardian
 Apprentice is entitled to casual leave of 12 days, medical leave of 15 days and
extra ordinary leave of 10 days.

LEGAL POSITION OF APPRENTICES

 An apprentice is not a workman during apprentice training( section 18)

 Provisions of Labour Law like Bonus, PF, E.S.T, gratuity are not applicable in the
case of apprentice.
 Industrial Dispute Act shall not be applicable to the apprentice.
 However, provisions of Factories Act regarding health, safety, and welfare will
apply to him.
 Apprentices is also entitled to get compensation from employer for employment
injury ( sec 16)
 An employer is under no obligation to employ the apprentice after competition of
apprenticeship
CASE : U.P State Transport Corporation vs U.P Parivahan Nigam -----------------------
 Preference in employment
 Relaxation in Age

STIPEND PAYABLE

The minimum rate of stipend payable per month is as follows:

1. Engineering Graduates Rs 1800/- pm.

2. Sandwich Course Student Rs 1400/- pm
3. Diploma holders Rs. 1400/-
4. Vocational Certificate holders 1090/-pm
In case 4 years training - 1 yr 820 , 2nd year 940, 3rd year 1090/-, 4th Year 1230

TEST AND PROFICIENCY CERTIFICATE

On competition of training every trade apprentice has to appear for a test conducted by
National Council and on qualifying the test, certificate shall be given having completed
the apprentice training successfully..

APPRENTICESHIP ADVISOR
Govt. is empowered to appoint Apprenticeship Advisor, Dy. Apprenticeship advisor to
supervise the scheme. Various powers have been on them under the Act.

Inspection

Offences and penalties.