Home India Ministry of Law and Justice The Apprentices (Amendment) Act, 2014....
Date: 2014-12-08 Category: Extra Ordinary State: Union Government Country: India

The Apprentices (Amendment) Act, 2014.

Issued by Ministry of Law and Justice · Legislative Department

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Executive Summary & Key Takeaways

**Executive Summary:** The Apprentices Amendment Act, 2014, was approved by the President on December 5, 2014, and published on December 8, 2014. This Act amends the Apprentices Act of 1961. It introduces changes to definitions, apprenticeship contracts, the engagement of apprentices, and penalties for non-compliance, and empowers the Central Government to prescribe rules and guidelines. **Key Points / Main Content:** * **Amendment of Definitions (Section 2):** * Expands the definition of "establishment" to include those operating in four or more states. * Substitutes new definitions for "designated trade," "graduate or technician apprentice," and "industry." * Introduces definitions for "optional trade" and "portalsite." * Replaces the definition of trade apprentice and worker. * **Changes Regarding Apprentices (Sections 3, 5, 8):** * Sets the minimum age for apprentices in hazardous industries at 18 years. * Allows employers to engage apprentices from other states. * The Central Government shall prescribe the number of apprentices for designated and optional trades. * **Apprenticeship Contracts and Procedures (Sections 4, 19):** * Employers must submit apprenticeship contracts to the Apprenticeship Adviser or enter the details on a Central Government portalsite (when available) within specified timeframes. * The Apprenticeship Advisor has 15 days to raise objections to the contract. * Employers must provide information and returns as prescribed to authorities and provide trade-wise requirements on the portalsite. * **Training and Development (Sections 6, 9):** * The Central Government prescribes conditions related to optional trade apprentices. * Specifies the practical and basic training requirements for trade apprentices. * Syllabi and equipment for practical training are subject to Central Government approval in consultation with the Central Apprenticeship Council. * **Assessment and Recruitment (Sections 15, 21, 22):** * The employer determines the weekly and daily working hours of an apprentice. * Outlines the process for trade apprentices to appear for proficiency tests conducted by the National Council or another authorized agency. * Employers should formulate their own policies for recruiting apprentices who have completed their training. * **Penalties for Contravention (Section 30):** * Introduces penalties for employers who fail to engage the required number of apprentices. * Specifies fines for non-compliance. * Exempts establishments under the Board for Industrial and Financial Reconstruction from these penalties. * **Rule-Making Powers (Section 37):** * Empowers the government to make retrospective rules from the date the Act received presidential assent, provided that these rules do not prejudicially affect the interests of any person to whom such rule may be applicable. **Impact Analysis:** * **Employers:** * *Impact:* Employers are affected by the changes in apprentice engagement, training requirements, contract procedures, and potential penalties. They now have the option of offering optional trades and may need to adjust their policies to accommodate these changes. * *Action Required:* Employers should review and update their apprenticeship programs, contracts, and policies to comply with the amended Act. This includes adhering to the new rules for apprentice numbers, training, and reporting. * **Apprentices:** * *Impact:* Apprentices are affected by the changes in age requirements for hazardous industries, training opportunities in optional trades, and assessment procedures. * *Action Required:* Apprentices should be aware of the updated eligibility criteria and training opportunities and prepare for the proficiency tests. * **Central Government:** * *Impact:* The Central Government is responsible for prescribing rules, guidelines, and standards related to apprenticeship programs, including designated and optional trades. It also oversees the implementation and enforcement of the Act. * *Action Required:* The Central Government must develop and publish the necessary rules, notifications, and guidelines to implement the amended Act. This includes establishing the portalsite for apprenticeship contracts and monitoring compliance. * **Apprenticeship Advisor:** * *Impact:* The Apprenticeship Advisor is responsible for the verification and registration of apprenticeship contracts, as well as conveying any objections to the employer. * *Action Required:* The Apprenticeship Advisor must review and register contracts within the stipulated timeframes and communicate any objections to the employer within 15 days.

Key Entities Referenced

The Apprentices Amendment Act, 2014: An Act further to amend the Apprentices Act, 1961. Apprentices Act, 1961: The principal Act being amended by the Apprentices Amendment Act, 2014. Parliament: The legislative body that enacted the Apprentices Amendment Act, 2014. Central Government: The government responsible for appointing the commencement date of the Act and other notifications. Official Gazette: The official publication where the Central Government will announce the commencement date of the Act. Central Apprenticeship Council: The council consulted by the Central Government for specifying designated trades. National Council: An agency that conducts tests to determine proficiency in the designated trade. Board for Industrial and Financial Reconstruction: The section 30 of the principal act will not apply to any establishment or industry which is under the Board for Industrial and Financial Reconstruction established under the Sick Industrial Companies Special Provisions Act, 1985.
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jftLVªh lañ Mhñ ,yñ—(,u)04@0007@2003—14 REGISTERED NO. DL—(N)04/0007/2003—14 vlk/kkj.k EXTRAORDINARY Hkkx [k.M II— 1 PART II—Section 1 izkf/kdkj ls izdkf'kr PUBLISHED BY AUTHORITY lañ ubZ fnYyh] lkseokj] fnlEcj 8] 2014@vxzgk;.k 17] 1936¼'kd½ 35] No. 35]NEW DELHI, MONDAY, DECEMBER 8, 2014/AGRAHAYANA 17, 1936(SAKA) bl Hkkx esa fHkUu i`"B la[;k nh tkrh gS ftlls fd ;g vyx ladyu ds :i esa j[kk tk ldsA Separate paging is given to this Part in order that it may be filed as a separate compilation. MINISTRY OF LAW AND JUSTICE (Legislative Department) ———— New Delhi, the 8th December, 2014/Agrahayana 17, 1936 (Saka). The following Act of Parliament received the assent of the President on the 5th December, 2014, and is hereby published for general information:— THE APPRENTICES (AMENDMENT) ACT, 2014 (NO. 29 OF 2014) [5th December, 2014.] An Act further to amend the Apprentices Act, 1961. BE it enacted by Parliament in the Sixty-fifth Year of the Republic of India as follows:— 1. (1) This Act may be called the Apprentices (Amendment) Act, 2014. Short title and commence- (2) It shall come into force on such date as the Central Government may, by notification ment. in the Official Gazette, appoint. 52 of 1961. 2. In the Apprentices Act, 1961 (hereinafter referred to as the principal Act), in Amendment section 2,— of section 2. (i) in clause (d), in sub-clause (1), after item (b), the following item shall be inserted, namely:— “(bb) any establishment which is operating business or trade from different locations situated in four or more States, or”;2 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— (ii) for clauses (e), (j) and (k), the following clauses shall respectively be substituted, namely:— ‘(e) “designated trade” means any trade or occupation or any subject field in engineering or non-engineering or technology or any vocational course which the Central Government, after consultation with the Central Apprenticeship Council, may, by notification in the Official Gazette, specify as a designated trade for the purposes of this Act; (j) “graduate or technician apprentice” means an apprentice who holds, or is undergoing training in order that he may hold a degree or diploma in engineering or non-engineering or technology or equivalent qualification granted by any institution recognised by the Government and undergoes apprenticeship training in any designated trade; (k) “industry” means any industry or business in which any trade, occupation or subject field in engineering or non-engineering or technology or any vocational course may be specified as a designated trade or optional trade or both;’; (iii) after clause (l), the following clauses shall be inserted, namely:— ‘(ll) “optional trade” means any trade or occupation or any subject field in engineering or non-engineering or technology or any vocational course as may be determined by the employer for the purposes of this Act; (lll) “portal-site” means a website of the Central Government for exchange of information under this Act;’; (iv) in clause (pp), for the words “such subject field in any vocational course as may be prescribed”, the words “designated trade” shall be substituted; (v) for clauses (q) and (r), the following clauses shall be substituted, namely:— ‘(q) “trade apprentice” means an apprentice who undergoes apprenticeship training in any designated trade; (r) “worker” means any person working in the premises of the employer, who is employed for wages in any kind of work either directly or through any agency including a contractor and who gets his wages directly or indirectly from the employer but shall not include an apprentice referred to in clause (aa).’. Amendment 3. In section 3 of the principal Act, for clause (a), the following clause shall be of section 3. substituted, namely:— “(a) is not less than fourteen years of age, and for designated trades related to hazardous industries, not less than eighteen years of age; and”. Amendment 4. In section 4 of the principal Act,— of section 4. (i) for sub-section (4), the following sub-sections shall be substituted, namely:— “(4) Every contract of apprenticeship entered into under sub-section (1) shall be sent by the employer within thirty days to the Apprenticeship Adviser until a portal-site is developed by the Central Government, and thereafter the details of contract of apprenticeship shall be entered on the portal-site within seven days, for verification and registration. (4A) In the case of objection in the contract of apprenticeship, the Apprenticeship Adviser shall convey the objection to the employer within fifteen days from the date of its receipt. (4B) The Apprenticeship Adviser shall register the contract of apprenticeship within thirty days from the date of its receipt.”; (ii) sub-section (5) shall be omitted.SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 3 5. After section 5 of the principal Act, the following sections shall be inserted, namely:— Insertion of new sections 5A and 5B. “5A. The qualification, period of apprenticeship training, holding of test, grant Regulation of of certificate and other conditions relating to the apprentices in optional trade shall be optional trade. such as may be prescribed. 5B. The employer may engage apprentices from other States for the purpose of Engagement providing apprenticeship training to the apprentices.”. of apprentices from other States. 6. In section 6 of the principal Act,— Amendment of section 6. (i) in clause (a), for the words “determined by that Council”, the word “prescribed” shall be substituted; (ii) for clause (aa), the following clause shall be substituted, namely:— “(aa) in the case of trade apprentices who, having undergone institutional training in a school or other institution affiliated to or recognised by a Board or State Council of Technical Education or any other authority or courses approved under any scheme which the Central Government may, by notification in the Official Gazette specify in this behalf, have passed the trade tests or examinations conducted by that Board or State Council or authority or by any other agency authorised by the Central Government, the period of apprenticeship training shall be such as may be prescribed;”. 7. For section 8 of the principal Act, the following section shall be substituted, namely:— Substitution of section 8. “8 (1) The Central Government shall prescribe the number of apprentices to be Number of engaged by the employer for designated trade and optional trade. apprentices for a designated (2) Several employers may join together either themselves or through an agency, trade and approved by the Apprenticeship Adviser, according to the guidelines issued from time optional trade. to time by the Central Government in this behalf, for the purpose of providing apprenticeship training to the apprentices under them.”. 8. In section 9 of the principal Act,— Amendment of section 9. (i) for sub-section (1), the following sub-section shall be substituted, namely:— “(1) Every employer shall make suitable arrangements in his workplace for imparting a course of practical training to every apprentice engaged by him.”; (ii) for sub-section (3), the following sub-section shall be substituted, namely:— “(3) Such of the trade apprentices who have not undergone institutional training in a school or other institution recognised by the National Council or any other institution affiliated to or recognised by a Board or State Council of Technical Education or any other authority which the Central Government may, by notification in the Official Gazette, specify in this behalf, shall, before admission in the workplace for practical training, undergo a course of basic training and the course of basic training shall be given to the trade apprentices in any institute having adequate facilities.”; (iii) sub-sections 4A, 4B, 5 and 6 shall be omitted.4 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— (iv) for sub-section (7) and sub-section (7A), the following sub-sections shall be substituted, namely:— “(7) In the case of an apprentice other than a graduate or technician apprentice or technician (vocational) apprentice, the syllabus of and the equipment to be utilised for, practical training including basic training in any designated trade shall be such as may be approved by the Central Government in consultation with the Central Apprenticeship Council. (7A) In the case of graduate or technician apprentices or technician (vocational) apprentices, the programme of apprenticeship training and the facilities required for such training in any designated trade shall be such as may be approved by the Central Government in consultation with the Central Apprenticeship Council.”; (v) in sub-section (8), in clause (c), after the words ‘‘employer alone”, the words “except apprentices who holds degree or diploma in non-engineering” shall be inserted. Amendment of 9. In section 15 of the principal Act,— section 15. (i) for sub-section (1), the following sub-section shall be substituted, namely:— “(1) The weekly and daily hours of work of an apprentice while undergoing practical training in a workplace shall be as determined by the employer subject to the compliance with the training duration, if prescribed.”; (ii) for sub-section (3), the following sub-section shall be substituted, namely:— “(3) An apprentice shall be entitled to such leave and holidays as are observed in the establishment in which he is undergoing training.”. Amendment 10. In section 19 of the principal Act, for sub-section (2), the following sub-sections of section 19. shall be substituted, namely:— “(2) Until a portal-site is developed by the Central Government, every employer shall furnish such information and return in such form as may be prescribed, to such authorities at such intervals as may be prescribed. (3) Every employer shall also give trade-wise requirement and engagement of apprentices in respect of apprenticeship training on portal-site developed by the Central Government in this regard.”. Amendment 11. In section 21 of the principal Act,— of section 21. (i) for sub-section (1), the following sub-section shall be substituted, namely:— “(1) Every trade apprentice who has completed the period of training may appear for a test to be conducted by the National Council or any other agency authorised by the Central Government to determine his proficiency in the designated trade in which he has undergone apprenticeship training.”; (ii) in sub-section (2), after the words “National Council”, the words “or by the other agency authorised by the Central Government” shall be inserted. Amendment 12. In section 22 of the principal Act, for sub-section (1), the following sub-section of section 22. shall be substituted, namely:— “(1) Every employer shall formulate its own policy for recruiting any apprentice who has completed the period of apprenticeship training in his establishment.”. Amendment 13. In section 30 of the principal Act,— of section 30. (i) for sub-section (1), the following sub-sections shall be substituted, namely:— “(1) If any employer contravenes the provisions of this Act relating to the number of apprentices which he is required to engage under those provisions,SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 5 he shall be given a month’s notice in writing, by an officer duly authorised in this behalf by the appropriate Government, for explaining the reasons for such contravention. (1A) In case the employer fails to reply the notice within the period specified under sub-section (1), or the authorised officer, after giving him an opportunity of being heard, is not satisfied with the reasons given by the employer, he shall be punishable with fine of five hundred rupees per shortfall of apprenticeship month for first three months and thereafter one thousand rupees per month till such number of seats are filled up.”; (ii) in sub-section (2),— (a) after clause (f), the following clauses shall be inserted, namely:— ‘‘(g) engages as an apprentice a person who is not qualified for being so engaged, or (h) fails to carry out the terms and conditions of a contract of apprenticeship.”; (b) for the words “imprisonment for a term which may extend to six months or with fine or with both” , the words “fine of one thousand rupees for every occurrence” shall be substituted. (iii) after sub-section (2), the following sub-section shall be inserted, namely:— “(2A) The provisions of this section shall not apply to any establishment or industry which is under the Board for Industrial and Financial Reconstruction 1 of 1986. established under the Sick Industrial Companies (Special Provisions) Act, 1985.’’. 14. In section 37 of the principal Act, after sub-section (1), the following sub-section Amendment shall be inserted, namely:— of section 37. “(1A) The powers to make rules under this section shall include the power to make such rules or any of them retrospectively from a date not earlier than the date on which this Act received the assent of the President, but no such retrospective effect shall be given to any such rule so as to prejudicially affect the interests of any person to whom such rule may be applicable.”. ———— DR. SANJAY SINGH, Secretary to the Govt. of India. PRINTED BY DIRECTORATE OF PRINTING AT GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI, 2014. GMGIPMRND—3407GI(S3)—11-12-2014.

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