Government amends Apprenticeship Act to boost hiring in the monsoon season

 

The government has amended the apprenticeship act to increase the scope of employment and bridge the existing skill gap. Read on to learn more.

Whats in the news! 

The government has been undertaking steps to increase the scope of employment and bridge the skill gap. The amended Apprenticeship Act enables small-scale to large-scale firms to hire and deploy more apprentices throughout the contract interval. This has boosted apprentice hiring by up to 15%.

The amendments made in the apprenticeship act are particularly aimed to enhance and improve the level of skill development in India. Additionally, it aims to improve the flexibility of employment in Indian companies. It has expanded the scope of apprenticeship hiring, thus enabling Indian companies to ensure flexible hiring.

According to Economic Times, companies including the public sector train only 2.5 to 3% apprentices of the total workforce, therefore, the number of trained apprentices remains very low in India.

The amendments allow educational and training institutions to engage with apprenticeships. The government has taken the initiative to simplify the guidelines and procedures for implementing apprenticeship programs. This encourages basic training for individuals via online and offline mediums.  

The government of India through amendments to the Apprenticeship Act aims to increase the number of apprenticeships in the next few years by five times. The need to make amendments to the Act was due to the dynamic nature of the workplace.

About Apprenticeship and Apprenticeship Act  

Apprenticeship is a skill development program enacted in 1961, wherein an individual person gets engaged with an organization as an apprentice and gains work exposure while they learn, for a specific contract period. The apprenticeship act was enacted to train and engage with the apprentices. It was meant to meet the increasing demand for skills and address skill shortages in the industry. According to the apprenticeship act, any provisions or industry can undertake an apprenticeship program.

ObThe objectives of the Apprenticeship Program 
  • Address the increasing skill demand in the Indian job market
  • Meet the increasing need for skilled and proficient workers
  • To provide experimental training to unskilled workers through work exposure

Significant amendments made in the apprenticeship act  

Amendments are made in the apprenticeship act to ensure that the program is implemented effectively. Here are some of the main changes made in the apprenticeship act.

  • The definition of workers has been widened to include agency and contractual workers.
  • Electronic record-keeping and information systems have been introduced through a portal. Maintenance of records and information is to be done online.
  • The process of assessing the strength and competence of the apprentice has been amended in the act.
  • The penalty for violating the apprenticeship act has been amended to a fine as the only punishment.

The changes are made in the apprenticeship act to encourage employers to hire more apprentices and engage with apprenticeship programs as well as to encourage businesses to abide by the provisions of the apprenticeship act.

 Apprentices and their benefits 

Apprentices are the individuals who are undertaking training from a particular organization under an apprenticeship scheme during the said period. An individual who has attained the age of 14 years and above can be an apprentice. For any organization or trade where there are safety concerns, the age limit of an apprentice is 18 years.

Benefits of being an apprentice  

  • Earning while learning
  • Gains government-recognized certification
  • Get real-life work exposure & work experience
  • Gets ongoing and personalized support from the employer
  • Develops existing skills and improves employability

Duties and responsibilities of an apprentice 

  • An apprentice must work with the utmost awareness and attentiveness to quality as a skilled professional
  • The apprentice must undertake instructional and practical sessions given by the employer and work accordingly
  • They must abide by the law as stated in the apprenticeship act and complete the duration as specified by the employer
  • All the responsibilities and duties in the assigned role must be carried out by the apprentice as per the apprenticeship agreement.

Duties and responsibilities of an employer  

  • It is the responsibility of the employer to provide a copy of the apprenticeship agreement with the apprentice agreeing to enter into a contract within 30 days
  • The employer must provide a training program or assign a guide to the apprentice along with other provisions prescribed by the government.
  • The apprentice must be provided with adequate training and guidance as per the terms mentioned in the apprenticeship agreement.
  • The apprentices must be provided with adequate instructions to complete the required tasks.
  • The employer must provide a minimum wage to the apprentice engaged as per minimum wage law.
  • The apprentice may be allowed to take leaves as per the policy of the organization.
  • Certain provisions such as the Factories Act, welfare, safety, and fitness applies to the apprentice and trainee.
  • The apprentice is liable to get compensated if any workplace injuries occur during the contract period.
  • The employer is liable to compensate an apprentice for any nonpublic accidents that occurred during the duration of the apprenticeship period as per Workmen’s Act 1923.

Learn more about the duties and responsibilities of an employer during the apprenticeship program.

How apprenticeship is a good opportunity for employers? 

Apprenticeship programs are taken into account vastly by employers to close the existing skill gap and increase worker productivity at a minimum cost. Additionally, it enables employers to reduce the rate of attrition in the organization.

Staffing agencies have witnessed a rise in apprenticeship hiring, especially in the healthcare, hospitality, e-commerce, and IT industries. Currently, 95% of licensed apprentices are in formal employment of which 40% of them are provided with permanent recruitment after completion of the contract.

It allows the employer to attract top talent and hire competent employees capable enough to take on higher positions in the organization. The apprenticeship program also ensures that the training programs are as per the standards. Additionally, the cost of training the employees also gets minimized due to the reduced rate of employee turnover. Training and skilling individuals under apprenticeship schemes serve as an investment for the future.

If you are looking forward to engaging apprentices or implementing an apprenticeship program, 2COMS might help to attain it smoothly.

Visit us to learn more.

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