I am HR in a hotel at Haryana. We hire Hotel management pursuing students as Industrial trainee for 6 months. We are not covered under Apprentice Act.
Are we liable to deduct PF ? If yes than we have to adhere minimum wages or not.
Please update me with latest updates in laws.
Thanks & Regards
Vijay Kumar
From India, Delhi
Are we liable to deduct PF ? If yes than we have to adhere minimum wages or not.
Please update me with latest updates in laws.
Thanks & Regards
Vijay Kumar
From India, Delhi
The Act (EPF, ESI, Minimum Wages or the ID Act) is silent in respect of industrial exposure trainees. Since they are students undergoing a practical training as per a curriculum of the University/ institution, they are not considered as employees and as such no contribution is payable in respect of them towards EPF or ESI. The same will be the status with regard to payment of minimum wages also. Moreover, under the scheduled employment also IET is not included. However, if a Provident Fund or ESI inspection is carried out, it will be upto you to give a satisfactory explanation so as to get them excluded.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
Attached the judgment of Allahabad High Court which substantiates the view of Madhu. T. K. One more important thing is that do not include their names in regular muster rolls. Please maintain different register exclusively for Trainess. Also you must show any amount paid to them as 'Stipend' only. Do not use the term 'Wages' any where in respect to these trainees.
From India, Mumbai
From India, Mumbai
But what is stated by Manish is different. The HC verdict follows the Apex Court verict in CAMPCO' s case and it is related to trainees engaged following a provision in the Standing Orders. Therefore, all trainees who are engaged following the provisions of Apprentice Act and those engaged by virtue of Standing Orders are not covered by EPF. But the case here is different and they are neither Apprentices nor engaged under the Standing Orders. In the case of Industrial Exposure Trainees as is common in hotel industries, I think there is no quotable case law in existence and whenever a query is raised by ESI or EPF, it is to be responded by saying that they are doing their "project" as "part of their curriculum".
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
Find answers from people who have previously dealt with business and work issues similar to yours - Please Register and Log In to CiteHR and post your query.