The Apprentices Act, 1961, commonly referred to as the Apprenticeship Act, 1961, is a legal framework designed to regulate and promote vocational education in India. The Ministry of Skill Development and Entrepreneurship (MSDE) is responsible for its implementation. Along with the Apprenticeship Rules of 1962, the Act governs programs combining theoretical and on-the-job training in the workplace. Apprentice training has proven to be an effective method of developing a skilled workforce in India without requiring substantial investment in new training facilities.
Key elements of apprenticeship training
Apprenticeship training comprises two main components: Basic Training and On-the-Job Training (OJT).
- Basic Training focuses on theoretical instructions and is especially important for individuals lacking formal (institutional) skill training. This component typically represents 20% to 25% of the overall apprenticeship program.
- On-the-Job Training or practical training takes place in the workplace, providing apprentices with practical, hands-on experience that helps them develop industry-relevant skills.
Apprenticeship opportunities are available in both public- and private-sector industries, wherever apprenticeship seats are offered.
National Apprenticeship Promotion Scheme (NAPS)
The Government of India introduced the National Apprenticeship Promotion Scheme (NAPS) to enhance apprenticeship opportunities across industries and assist employers in hiring a proper number of apprentices. NAPS aims to bridge the gap between theoretical knowledge and practical skills, encouraging employers to offer apprenticeship opportunities in their fields.
NAPS supports companies hiring apprentices through various financial initiatives. One is reimbursing 25% of the apprenticeship stipend up to a certain amount directly to an employer. The second is providing funds for basic training costs, which makes implementing the Apprentices Act much more manageable.
Under NAPS, employers can register apprenticeship programs, track the engagement of apprentices, and ensure alignment with central and state apprenticeship standards.
Implementing an apprenticeship training scheme
The first step in implementing the apprenticeship training program is visiting www.apprenticeshipindia.org (launched on 6th April 2020). This platform not only provides guidelines on apprenticeship procedures but also enables employers to:
- Register apprentices and establishments where training will take place
- Track stipend payments and apply for reimbursement
- Access resources and guidelines to ensure compliance with Apprentices Act, 1961, and Apprenticeship Rules, 1962
The role of Apprenticeship Advisers
In India, the law recognizes two types of Apprenticeship Advisers: The Central Apprenticeship Adviser, appointed by the central government, and the State Apprenticeship Adviser, appointed by the respective state government.
The Central Apprenticeship Adviser serves as the Secretary to the Central Apprenticeship Council, while the State Apprenticeship Adviser is the Secretary of the State Apprenticeship Council.
Apprenticeship Advisors play an important role in implementing and monitoring NAPS. Their responsibilities include:
- Guiding employees in registering an apprenticeship program under NAPS and ensuring compliance with the Apprentice Act 1961
- Educating employers on NAPS benefits. Through NAPS, employers can receive financial incentives, like stipend reimbursements, which can help them meet central or state apprenticeship requirements with ease.
The difference between NATS and NAPS
NATS, or the National Apprenticeship Training Scheme, is an initiative aimed at providing practical skills to individuals who have already completed their formal education. It is focused on training graduates, diploma holders, and ITI (Industrial Training Institute) certificate holders in engineering and non-engineering fields.
NAPS, on the other hand, was launched later to provide employers with more comprehensive support and resources, including financial support. NAPS encourages them to engage in training apprentices who are still pursuing their education or may have completed basic training and are looking to gain hands-on, industry-specific experience.
Trade categories
Under the Apprentices Act of 1961, employers must engage apprentices in training programs for designated and optional trades.
- A designated trade refers to a trade, occupation, or field in engineering, non-engineering, technology, or vocational courses officially recognized by the Government of India.
- An optional trade refers to a trade, occupation, or field in engineering, non-engineering, technology, or vocational courses chosen by employers for the apprenticeship program.
Types of apprentices
The Act recognizes five categories of apprentices:
- Trade Apprentices undergo training in a specific trade. People who have completed their 8th, 10th, or 12th grade or have an ITI (Industrial Training Institute) certification can join apprenticeship programs in these trades. The duration period of apprenticeship training ranges from six months to up to four years.
- Graduate Apprentices have degrees in engineering or non-engineering and are undergoing apprenticeship training in a specific trade. Over 160 designated tradies are available for this category of apprentices.
- Technician Apprentices hold engineering or non-engineering diplomas and undergo training in a designated trade.
- Technician Vocational Apprentices have completed a vocational course after finishing secondary school and hold certificates recognized by the All India Council. Every apprentice undergoes training in one out of 137 designated trades.
- Optional Trade Apprentices, as the name suggests, undergo training in an optional trade.
Individuals over the age of 14 with the required physical and educational qualifications can participate in apprenticeship programs. The duration of these programs varies by trade but can be conducted at any part of the year.
Contract of apprenticeship
An apprenticeship contract is a legally binding document signed between an employer and an apprentice and registered with an Apprenticeship Adviser. It outlines the terms and conditions under which an apprentice will receive on-the-job training and ensures that both parties understand their rights and obligations during their apprenticeship period.
The contract typically includes:
- Duration of the apprenticeship: The length of the apprenticeship program
- Training description: The list of tasks and responsibilities an apprentice will have throughout the course
- Working conditions: Working hours, breaks, entitlements, and responsibilities
- Stipend: Financial compensation provided to the apprentice during the training period
- Termination and renewal: Conditions under which an apprentice may be terminated or renewed; rights and obligations of both parties in those circumstances
- Liability: Clarification of employer’s rights and obligations, including providing adequate training, security measures, and mentorships, and apprentice’s commitment to learning and following the terms of the contract
Certification process
Upon completing apprenticeship training, the apprentice must take the All India Trade Test conducted by the National Council for Vocational Training (NCVT). Those who pass the test receive the National Apprenticeship Certificate (NAC), the employment qualification. Apprentices in optional trades, however, will be assessed in the establishment where they received their training.
FAQs about the Apprentices Act 1961
What are the key provisions of the Apprentices Act?
The key provisions of the Act define the rules for registering apprentices, determining program duration, setting stipend rates, and ensuring adequate training places. The policy emphasizes the operationalization of apprenticeships through a structured framework that aligns with designated and optional trades.
How does the Apprentices Act ensure quality training?
The Act ensures quality training by requiring employers to provide proper supervision, mentorship, and hands-on experience in real working environments. It also mandates that apprentices take the All India Trade Test as a prerequisite for certification.
Rippling and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any related activities or transactions.