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Everything you need to know about: THE APPRENTICE ACT, 1961.


Apprenticeships are great for job seekers to gain company - specific skills. It is also easier for employers to find talented people and people who fit their needs well. The apprenticeship Act of 1961, amended in 1973 and 1986, protects apprentices and enforces labor rules.

The pandemic hurt businesses, which will always need people who can work, even if the economy is doing well. An apprenticeship could be a solution to this problem. The Apprentices Act says that the Ministry of Skill Development and Entrepreneurship will pay the stipend of 2.43 lakh apprentices nationwide in 2020. This will cost the government an estimated 36 crore INR.

Apprentice Act, 1961

This Act aims to regulate and control how apprentices are trained. On March 1, 1962, it went into effect.

The Act has rules about the followings-

  • Qualifications of apprentices,
  • The duties of employers and apprentices,
  • The length of an apprenticeship,
  • How to end an apprenticeship contract
  • How to settle disputes between employers and apprentices,
  • Reservation for Schedule Caste (SC) and Schedule Tribe (ST) in designated trades (any trade, occupation, or ‘any subject field in engineering or technology’ that the central government specifies as a ‘designated trade’ under the Act).

The Act calls for the National Council, a Central Apprenticeship Council, State Councils, State Apprenticeship Councils, an All India Council, Regional Boards, State Councils of Technical Education, the Central Apprenticeship Adviser, and State Apprenticeship Advisers to be set up to oversee apprenticeship training.

The Act covers the entire country of India.

  1. Who is an ‘apprentice’ in the eyes of the Act?

Apprentices or trade apprentices learn how to do a job in any industry or business under a contract with an employer. An apprenticeship act is a contract between an employer and a person who wants to learn how to do a job.

Apprentices must be at least 14 years old and meet the education and physical fitness requirements for the trade they want to learn.

  1. What does the Apprentice Act say concerning the apprentice's income, welfare and health?

Every employer is required to provide an apprentice with a stipend during the Apprenticeship at a rate that is not less than the 'specified minimum rate.' No "piece work" compensation or participation in any "output bonus" programs is permitted for apprentices. Any time spent attending training sessions or receiving relevant instructions will be compensated.

The provision of the Mines Act of 1952 and the Factories Act of 1948, respectively, must be followed if an apprentice is receiving training in a mine or factory. The Workmen's Compensation act of 1923 requires the employer to provide compensation if an apprentice sustains an injury while undergoing training.

An apprentice's weekly and daily work schedule must follow the guidelines. Unless with the approval of the apprenticeship advisor, they shall not be compelled to perform overtime work or be permitted to do so. The trainee is entitled to any prescribed holidays and leave.

  1. What duties must both employers and apprentices comply with under theApprentice Act?

Every employer has to ensure that the apprentice receives training under the provisions of this Act, to provide instructional staff, to make sure that the instructional staff and the person in charge of training have the necessary credentials, and to uphold the duties outlined in the apprenticeship contract. Employers must set aside "training spots" for SCs and STs in each designated trade according to the state's population of SCs and STs.

Apprentices must receive practical instruction in their workshops; thus, employers must make accommodations. The employer must build a separate structure or a portion of a building to train trade apprentices if more than 500 people are engaged in the company.

Every person completing an apprenticeship in a trade must learn their business carefully and diligently, attend practical and academic classes regularly, obey all legitimate instructions from their employer and superiors, and adhere to the apprenticeship contract requirements.

  1. What happens when the Apprenticeship is over?

The National Council will administer a test to establish an apprentice's skill level in the selected trade at the conclusion of their training time. After passing the test, the National Council will provide the apprentice with a certificate of proficiency.

Unless stated explicitly in the apprenticeship contract, neither the employer nor the apprentice is required to make an employment offer to an apprentice who has finished training in the employer's facility.

Act Scheme

  • There are 38 Schedule and General Sections.
  • This Schedule adjusts the Workmen's Compensation Act 1923 for students under the Apprentices Act 1961.

Employers should promote Apprenticeship.

Apprenticeship provides skilled and trained workers for the future. Apprenticeships help employers recruit top talent. Employers can hire competent, qualified workers who can advance to more challenging roles. Apprenticeship programs help employers meet and improve training standards. They have reduced personnel turnover and training costs.

Major apprentices Act Amendments

 The Apprentice (Amendment) Act, 2014, took effect on December 26, 2014, to ensure the Apprentice Act was adequately implemented.

LOK SABHA (Introduced) Aug 07,2014

LOK SABHA (Passed) Aug 14,2014

RAJYA SABHA (Passed) Dec 26,2014


The amendment changes the following:

  1. The definition of ‘worker’ has been changed to include people who work for an agency or on a contract. This is true because the number of employees in a status quo is one of the things that could be considered when deciding how many apprentices to hire in a company.
  2. If someone breaks the Apprentice Act, they no longer go to jail. After the change, the only punishment for not allowing the rules of the Act is to pay a fine.
  3. Due to the change in the apprentice act, the way that the number of apprentices to be hired is checked has changed.
  4. With the portal's launch, the Apprentice Act change has made it possible to switch from paper records to electronic records and information systems. Some things could be done through the portal that can already be done online, such as registering the apprenticeship contract, keeping records, filing returns, etc.

The main goal of these changes is to get more employees to hire Apprentices and to get the organization to follow the rules of the Apprentices Act.



The apprenticeship Act aids in the resolution of disagreement between the apprentice and the employer, and the Apprenticeship Advisor serves as the final arbiter. They should appeal to the committee that the council constituted. He will be punished if the employer does not follow the Act's provisions. The apprenticeship Act of 1961 is a comprehensive statute that protects both the employer's and the apprentice's rights. The Apprentice Act can be put into action to protect the rights of the apprentice and resolve the issue they encountered throughout their training.

Looking forward to implementing NAPS in your organization? 2COMS can help you implement it with case while you stay compliant with the labour laws. Not to mention you get financial benefits. Ask us how! Visit today.

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