There is no specific law which determines or include the term trainee, thus, law associated with trainees in India is one of the foremost complicated subjects has ever evolved. The reason being that those that are trainee are employee at the same time. Organizations which engages the trainees should better have knowledge regarding all laws before engaging any trainee to the organization/company.
Over time, people had quarries many times on how to comply with the statutory norms for Trainees and interns, but there is not much clarity on the subject. Employees have certain rights as per labour laws. Hence,through this blog, I will try to put down certain facts and figures and an attempt to bring a bit more clarity on the topic.
There is no act, whether labour law, EPF or ESI (Employees' State Insurance) , define the word or position “Trainee”, hence a typical understanding term is been used. Individuals, commonly freshers, who have little or no skills to undertake the specified job will be called as a “trainee”. The trainees who would qualify, stays within the job. Organization intent is to use the said individual if found fit. Taking this intent into consideration, they're subject to statutory deductions & norms, whether or not you concentrate on them as an employee.
Interns are students, who haven't completed their education but because of curriculum requirements, are required to undertake project/internship program at a corporation/business. the shortage of standardization & oversight leaves the term “Intern” hospitable judicial activism. Interns are temporary positions for faculty students, graduate or postgraduate students to induce trained for white-collar jobs or professional careers. they're expected to be widely unpaid.
The trainees are generally not paid salary, in spite, they're paid stipend. Whether the person is trainee but if the trainee is satisfying S. 2(9) of the ESIC Act, the person will naturally called as ‘Employee’ under the section. Though specifically S. 2(9) has exempted and ignored the apprentices engaged under the Apprentices Act, 1961, therefore from here the conclusion is drawn is that ‘Trainee’ is also treated as ‘employee’ but apprentice engaged under the Apprentice Act won't be treated as ‘employee’ under the ESIC Act. Wages under the ESIC is defined u/s 2(22) and includes all the remuneration paid or payable in cash to an employee. One may refer to labour lawyers for professional consultation on specific facts.
The trainees are apprentices engaged under the parliamentary law of an organisation or under the Apprentices Act and cannot come within the ambit of the Employee Provident Fund and Miscellaneous Provisions Act, 1952. The Section 2 (f) of the EPF Act “defines an employee to incorporate an apprentice” an apprentice is described as a learner who is paid allowance during the training period.” Therefore, employers don't seem to be obliged to contribute to the PF for them.
A ‘trainee not being a student’ who is engaged not under the Apprentice Act, are going to be covered under the Act and can be subjected to EPF deduction yet if attracts S. 2(b) and S. 2(e)of EPF.
The Ministry of Labour and Employment, through its Notification G.S.R. 680(E) dated September 22, 2014 prescribed the minimum rate of stipend per month payable to trade apprentices.
The minimum rate of stipend per month shall be calculated at a percentage of the remuneration of semi-skilled workers of the respective state or union territory which can be, namely
Further, within the event the minimum rate of wage for a trade isn't notified by any state or union territory, then, the utmost of minimum wages of the scheduled employment for semi-skilled workers shall be considered for paying the stipend.
Whereas just in case of Trainees privately limited Sector the employer cannot deprive the trainees from the payment of notified minimum wages even. because the Minimum Wages Act contains a listing, which within the legal terminology is termed as ‘Schedule’. This list states “scheduled employments”. This act applies to those scheduled employments. All workers regardless of temporary and/or permanent and/or regardless to the status (trainee or probationary) under a scheduled employment must receive a minimum of the statutory rate.
From all the above mention information we gathered, my understanding states that :