Maharashtra Govt. issues Apprentices (Maharashtra Amendment) Act, 2017, effective date yet to be notified

Maharashtra Govt. issues Apprentices (Maharashtra Amendment) Act, 2017, effective date yet to be notified

February 13, 2018 Industries, Maharashtra, OPS 0

The Government of Maharashtra has issued Apprentices (Maharashtra Amendment) Act, 2017 (“Amendment Act”) on 9th February, 2018 amending Apprentices Act, 1961 (“Principal Act”), in its application to the State of Maharashtra.

The Amendment Act will come into force on a date which the State Government will appoint by issuing a notification in the Official Gazette.

The highlights of the Amendment Act are:

Principal Act Amendment Act Implication
Section 6 – Period of apprenticeship training

 

(a) in the case of trade apprentices who, having undergone institutional training in a school or other institution recognised by the National Council, have passed the trade tests or examinations conducted by that Council or by an institution recognised by that Council, the period of apprenticeship training shall be such as may be prescribed;

 

(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;

 

(b) in the case of other trade apprentices, the period of apprenticeship training shall be such as may be prescribed

 

 

 

Section 6 – Period of apprenticeship training

 

a) in the case of trade apprentices who, having undergone institutional training in a school or other institution recognised by the National Council, have passed the trade tests or examinations conducted by that Council or by an institution recognised by that Council, the period of apprenticeship training shall be such as may be prescribed;

 

(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;

 

(b) in the case of other apprentices, the period of apprenticeship training shall be such as may be specified by the State Apprenticeship Council

The Amendment Act has substituted Section 6(b) of the Principal Act.

 

As per the amendment, in the case of apprentices other than the trade apprentices covered in Section 6(a) and (aa), the period of apprenticeship training will be specified by the State Apprenticeship Council.

 

Prior to the Amendment Act, for trade apprentices other than the trade apprentices covered in Section 6(a) and (aa), the period of apprenticeship training was provided in the rules.

Section 7 – Termination of apprenticeship contract

 

3) After considering the contents of the application and the objections, if any, filed by the other party, the Apprenticeship Adviser may, by order in writing, terminate the contract if he is satisfied that the parties to the contract or any of them have or has failed to carry out the terms and conditions of the contract and that it is desirable in the interests of the parties or any of them to terminate the same:

 

Provided that where a contract is terminated–

 

(a) for failure on the part of the employer to carry out the terms and conditions of the contract, the employer shall pay to the apprentice such compensation as may be prescribed;

 

(b) for such failure on the part of the apprentice the apprentice or his guardian shall refund to the employer as cost of training such amount as may be determined by the Apprenticeship Adviser.

 

 

Section 7 – Termination of apprenticeship contract

 

3) After considering the contents of the application and the objections, if any, filed by the other party, the Apprenticeship Adviser may, by order in writing, terminate the contract if he is satisfied that the parties to the contract or any of them have or has failed to carry out the terms and conditions of the contract and that it is desirable in the interests of the parties or any of them to terminate the same:

 

Provided that, where a contract is terminated—

 

(a) for failure on the part of the employer to carry out the terms and conditions of the contract, the employer shall pay to the apprentice one

month’s stipend for which he is entitled as a compensation;

 

(b) for such failure on the part of the apprentice, the apprentice or his guardian shall refund to the employer as cost of training one month’s stipend for which he is entitled.

The Amendment Act has substituted the proviso to Section 7(3) of the Principal Act.

 

As per the amendment, if a contract of apprenticeship is terminated—

 

(a) for failure on the part of the employer to carry out the terms and conditions of the contract, the employer will have pay to the apprentice one month’s stipend for which he is entitled as a compensation;

 

(b) for such failure on the part of the apprentice, the apprentice or his guardian will refund to the employer as cost of training one month’s stipend for which he is entitled.

 

Prior to this, the Principal Act did not specify the quantum of compensation in case of termination of contract of apprenticeship either on default of the employer or the apprentice. One had to refer to the rules to determine the quantum of compensation in the former case, and the compensation in the latter case was determined by the Apprenticeship Adviser.

 

Hence, by virtue of this amendment, a definite amount of compensation has been fixed.

Section 8. Number of apprentices for a designated trade and optional trade.

 

(1) The Central Government shall prescribe the number of apprentices to be engaged by the employer for designated trade and optional trade.

 

(1A) – *Not Existent*

Section 8. Number of apprentices for a designated trade and optional trade.

 

(1) The Central Government shall prescribe the number of apprentices to be engaged by the employer for designated trade and optional trade.

 

(1A) Notwithstanding anything contained in sub-section (1), the establishment shall have to engage trade apprentices to the extent of minimum 2.5 per cent. and maximum 25 per cent. of the total strength of the employees of establishment including contractual or daily wages or

whose services have been available through third party in any designated trades or optional trades for which activities are carried out in that establishment.

The Amendment Act has inserted a new provision Section 8(1A).

 

As per the amendment, while the Central Government will prescribe the number of apprentices which should be engaged for designated and optional trade establishments will have to engage trade apprentices to the extent of minimum 2.5% and maximum 25% of the total strength of the employees of establishment. The total strength of employees would include contractual or daily wages or whose services have been made available through third party in any designated trades or optional trades for which activities are carried out in that establishment.

 

Prior to this, no such condition was present in the Principal Act.

Section 13 – Payment to apprentices

 

(1) The employer shall pay to every apprentice during the period of apprenticeship training such stipend at a rate not less than the1[prescribed minimum rate, or the rate which was being paid by the employer on 1st January, 1970 to the category of apprentices under which such apprentice falls, whichever is higher, as may be specified in the contract of apprenticeship and the stipend so specified shall be paid at such intervals and subject to such conditions as may be prescribed.

 

 

Section 13 – Payment to apprentices

 

(1) The employer shall pay to every apprentice during the period of apprenticeship training such stipend at a rate not less than the1[prescribed minimum rate, or the rate which was being paid by the employer on 1st January, 1970 to the category of apprentices under which such apprentice falls, whichever is higher, as may be specified in the contract of apprenticeship and the stipend so specified shall be paid at such intervals and subject to such conditions as may be prescribed.

 

(1A) The minimum rate of stipend per month payable to trade apprentices who do training for eight hours per day shall be as follows, namely :—

 

(a) During the first year of training: Seventy per cent. of minimum wages of semi-skilled workers notified by the State.

 

(b) During the second year of training: Eighty per cent. of

minimum wages of semi-skilled workers notified by the State.

 

(c) During the third year of training: Ninety per cent. of

minimum wages of semiskilled

workers notified by the State.

 

(1B) The trade apprentices who do training for minimum four hours per day, the rate of stipend per month shall be fifty per cent. of the rates

mentioned in clauses (a), (b) and (c) of sub-section (1A), respectively;

 

Provided that, in the case where the minimum rate of wage for a trade is not notified by the State, then the maximum of minimum wages of the Scheduled Employment notified by the State for semi-skilled workers shall be taken into account for paying the stipend in respect of that trade:

Provided further that, in the case of trade apprentices referred to in clause (a) of section 6 of the Act, the period of training already undergone

by them in a school or other institution recognised by the State Council, shall be taken into account for the purpose of determining the rate of stipend payable.

 

 

The Amendment Act has inserted two provisions under Section 13 of the Principal Act.

 

1. As per the amendment, the minimum stipend of trade apprentices who train for 8 hours per day for a month would be as follows:

 

(a) During the first year of training: 70% of minimum wages of semi-skilled workers notified by the State.

 

(b) During the second year of training: 80% of minimum wages of semi-skilled workers notified by the State.

 

(c) During the third year of training: 90% of minimum wages of semiskilled workers notified by the State.

 

2. For trade apprentices who train for minimum 4 hours per day, the rate of stipend per month will be 50% of the rates mentioned in point (a), (b) and (c) above, respectively.

 

3. Where the minimum rate of wage for a trade is not notified by the State, then the maximum of minimum wages of the Scheduled Employment notified by the State for semi-skilled workers will be considered.

 

4. For trade apprentices referred to in Section 6(a) of the Principal Act, the period of training already undergone

by them in a school or other institution recognized by the State Council, will be taken into account for the purpose of determining the rate of stipend payable.

 

Prior to this, the Principal Act did not cover this aspect of payment of stipend.

For further details, please refer to the document attached with this email.

Source: Maharashtra Gazette

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