In this article, Aman Naqvi, pursuing Diploma in Entrepreneurship Administration and Business Laws from NUJS, Kolkata discusses 5 key clauses of an Apprenticeship Contract

Introduction

In 1961, the government felt the need for regulation of the training provided to the apprentices. Thus, came into force the Apprentices Act 1961. The objective of this Act is for apprentices to learn and train with the facilities with which the employees work. It laid down certain guidelines in regard to the training of apprentices. As per the Apprentice Act 1961, it was applicable for the industries and trades which were authorised by the Central Government in the Official Gazette. Almost all the industries fall under the purview of the Act.

Importance of the Apprenticeship Act

The primary objective of the Act was to train people as apprentices and give them an exposure to the employee work culture. The government felt the need that such apprentices if given proper training with proper amenities, they will have an insight to the real life working of employees which will give them an unparalleled exposure which would help them to excel in the field in the future. The Act makes it obligatory for the designated trades to impart training to the apprentices. Apprentices are also divided into four types:

• graduate
• technician and
• trade apprentice
• Vocational technician apprentices.

A person receiving an apprentice training should have attained an age of 14 years and for the trades where safety issues are concerned to the apprentice should have attained 18 years. An apprentice takes training or masters the competencies and masters the certain craft.

Contract of Apprenticeship

For an apprenticeship contract to be executed, an apprentice and an employer need to sign an agreement in which for a particular duration, an apprentice will be trained under an employee in which he will be imparted education in relation to a particular skill and will be trained with the same benefits and services as given to the employees. At the end of the apprenticeship, the employer will issue a certificate of apprenticeship to the apprentice mentioning the duration certifying the successful completion of the apprenticeship complied with the terms and conditions and under the provisions of the Act.

The terms and conditions which are mentioned in the contract should be mutually agreed between both the parties. If an apprentice is minor, an agreement has to be signed via his father or mother. In apprenticeship schemes, the apprentice gets skilled and trained by the employer, which makes them an asset. Employer’s participation in apprenticeship programs aids the organization in attracting top talent. Being a part of the apprenticeship programs the employer makes sure that the training standards are met regularly. According to Section 4 of the Apprenticeship Act, the apprentice and the employer need come to a contract with the apprentice which needs to be executed by the apprentice advisor. In an apprenticeship contract there are several important clauses which need to be complied with:

• Duration of the Apprenticeship

According to Section 6 of the Apprenticeship Act,  the period of an apprenticeship will be deemed to have commenced on that day on which the contract of apprenticeship has been entered. Duration of the apprenticeship period has also been prescribed in Apprenticeship Rules, 1991. Duration of Apprenticeship may be from six months to four years depending on the alternate, as prescribed in Rules and decided via National Council for Education in Vocational Trades.

• Failure to finish apprenticeship program

Illness/Circumstances beyond control

If a  trade apprentice fails to finish the apprenticeship within the prescribed durations mentioned in the contract or fails to appear in the final test due to illness or any other circumstances beyond his control, the establishment concerned shall extend the period of his apprenticeship until he completes the full apprenticeship course.

Fail in Test

Extension of the apprenticeship tenure will also be allowed in the case where trade apprentices who have completed their course but are unable to pass in the final test. A   trade apprentice who fails in the second test shall not be allowed any extension of the period of training.

Strike or Lockout or Layoff

If a  trade  apprentice  is  unable  to   complete  the  period  of apprenticeship training due to strike, lockout or  layoff  in  an  establishment  where  he is undergoing training the period of his apprenticeship training shall be extended for  a  period equal  to the period of strike, lockout or layoff as the case may be, and he shall be paid stipend during the  period of  such  strike  or  lockout  or layoff or for a maximum period of six months, whichever is less. If it layoff is likely to continue for a longer period, the employer shall follow the procedure for novation of contract of apprenticeship of a trade apprentice with the other employer as specified in section 5 of the Act. In the case of trade apprentices, the first six months of the period of training shall be treated as a period of probation.

• Registration of Apprenticeship contract

Each and every contract of apprenticeship shall be sent to the Apprenticeship advisor for registration. The apprenticeship advisor needs to be fully satisfied whether such apprentice qualifies to be an apprentice in the designated trade as per the Apprenticeship Act 1961. Once the apprenticeship advisor is fully satisfied that then it is a valid apprenticeship under the Act then he will register the contract of apprenticeship. If the Central Government makes any rules or law in relation to the apprenticeship scheme then such changes are expected to modify the contract according to such changes.

• Terms and conditions

Each contract of the apprenticeship will have certain terms and conditions which need to be mutually agreed between both the employer and the apprentice. These conditions need to be fulfilled by both the parties and in any case, those phrases and conditions can’t be detracted under this Act or be varying with the provisions of this Act. The apprentices need to be provided with sufficient training in lines with the provisions of the Act and by the terms of the apprenticeship agreement. For this purpose, an employer must make good enough preparations for the cause of providing practical schooling. The employer needs to specify the type of training which will be provided to the apprentice, what facilities and amenities will be provided to the apprentice, the amount of stipend to be provided to him and the duration of the apprenticeship. The employer is under an obligation to execute the contract in compliance with the terms and conditions specified in the contract. Most of the times in litigation related to the apprenticeship act are mainly because the employers are unable to fulfil the promises made by them while signing the terms and conditions of the contract.

• Termination of a contract

Section 6 specifies when a contract of apprenticeship is terminated. A contract is terminated either when the contract is fulfilled or when the apprenticeship advisor terminates it or when the any of the parties do not comply with the contract.

By the contract

The date on which the apprenticeship contract is finished, the same day the contract of the apprenticeship comes to an end and stands terminated. Once the apprenticeship is finished the apprentice can send an application to the apprenticeship advisor specifying the duration of the apprenticeship and the date on which It is ended, a copy of this should also be sent to the employer. If the apprenticeship advisor is convinced and satisfied that the contract of apprenticeship has been carried out as per the terms and agreement of the apprenticeship contract then such certificate certifying that the person has done under such employer for specific duration should be given.

By the Apprenticeship Advisor

If after the apprenticeship contract is signed and before the termination of the contract the apprenticeship advisor is satisfied that both the parties are not executing the apprenticeship contract as per the provisions of the act or as per the terms and conditions specified in the Act then also the apprenticeship advisor has the power under this act to terminate the contract of apprenticeship. He needs to inform both the parties on such termination. If the contract is not fulfilled by the employer then he will have to compensate to the apprentice for not providing the training and amenities mentioned in the contract.

By the Apprentice

If the apprentice leaves the apprenticeship in the middle way or doesn’t comply with the terms and conditions of the contract then the apprenticeship contract will be terminated by the apprenticeship advisor after consulting the employer under who he was an apprentice and the guardian will have to give a refund of amount spent in the training of such apprentice.

Conclusion

These are the important clauses of the apprenticeship contract as mentioned in the Apprenticeship Act 1961. They need to be complied with while fulfilling an apprenticeship contract. Failure to fulfil the apprenticeship contract will directly lead to the termination of the apprenticeship.