 financial memorandumthe amendments to the relevant sections of the apprentices act, 1961 provide for creating a separate category of apprentices viz "technician (vocational) apprentice", with a view to providing apprenticeship training to the students passing out pf the +-2 vocational stream the various amendments proposed include inter alia payment of stipend to the apprentices similar to those provided for the graduate and technician apprentices, the scheme for which, is being implemented by the ministry of human resource development (department of education) through the regional boards of apprentices training there is also a proposal to increase the rates of stipend being paid to the apprentices in general and this would also apply to the new category of apprentices which is being proposed the scheme envisages payment of a minimum rate of stipend 50 per cent, of which will be reimbursed by the central government to the training establishments as in the case of the present category of graduate and technician apprentices under the present special vocational educational training (svet) scheme, about 25 subject fields have been identified and 3000 stipendiaries per annum are being offered training facilities it is proposed under the amended apprentices act to provide initially apprenticeship training in these identified subject fields and later expand it in a phased manner progressively to other subject fields depending upon the experience in the implementation of the scheme on this basis, it is estimated that about 4,000 trainees will be benefitting from the scheme in the first year of its operation this number will progressively increase to around 12,000 by the end of the 7th five year plan the corresponding financial implication (reimbursement of central government share of stipend) would be as follows:— | number     | of           | trainees    ||------------|--------------|-------------|| year       |              |             || amount     | reimbursible | by          || proposed   |              |             || central    |              |             || government |              |             || 1986-87    | 4000         | 96          || 1987-88    | 6000         | 144         || 1988-89    | 9000         | 216         || 1989-90    | 12000        |            |(it is assumed that the rate of stipend would be rs 400/- pm for a period of one year, training, 50 per cent of which will be reimbursed by the government of india) ' in case of increase in the vocational educational facilities in the 7th plan, it might be necessary to increase the number of training places for the products of vocational stream in that event, the financial estimate will also require to be modified to take care of the payment of stipend to the increased number of trainees of the vocational stream, order to implement the scheme effectively throughout the country, egional boards of apprenticeship training as also the technical tion bureau of the ministry of human resource development partment of education) will have to be sufficiently strengthened for ig additional posts to properly look after this additional responsi+  at present, the total non-plan administrative expenditure of the boards of apprenticeship training is about rs 28 lakhs per annum he implementation of the present graduate and technician apprentices e the introduction of the technician (vocational) apprentices cheme would involve an additional expenditure of about rs 10 lakhs per mnum in the initial stage, rising up to about rs 15 lakhs per annum by he end of the seventh five year plan for the additional posts in the regional boards and the technical education bureau of the ministry memorandum regarding delegated legislationclause (pp) sought to be inserted in section 2 of the apprentices act, 1961 by clause 2 of the bil] empowers the central government to prescribe the subject fields in vocational course in which the apprenticeship training shall have to be undergone by technician (vocational) apprentices \ 2 since the subject fields may have to undergo change from time to time, it would beconvenient to delegate the power to the central government to prescribe by rules such subject fields the delegation of legislative power is thus of a normal and routine character  annexure extracts yrom the apprentices act, 1961 (52 or 1961)   ®  2 in this act, unless the context otherwise requires,— definitions,      (d) "appropriate government" means,— (1) in relation to—      (aa) the practical training of graduate or technician apprentices, or      may, by notification in the official gazette, specify as a designated trade for the purposes of this act;      (k) "industry" means any industry or business in which any trade, occupation or subject field in engineering or technology may be specified as a designated trade; (l) "national council" means the national council for training in vocational trades established by the resolution of the government of india in the ministry of labour (directorate-general of resettlement and employment) no tr/ep-24/56, dated the 21st august, 1956,       chapter ii apprentices and their 'training3 a person shall not be qualified for being engaged as an apprentice to undergo apprenticeship training in any designated trade, unless he— (a) is not less than fourteen years of age, and (b) satisfies such standards of education and physical fitness as may be prescribed: qualifica tions for being engaged as ar appren tice,provided that different standards may be prescribed in relation to apprenticeship training in different designated trades and for different categories of apprentices, 3a (1) in every designated trade, training places shall be reserved by the employer for the scheduled castes and the scheduled tribes (2) the number of training places to be reserved for the scheduled castes and the scheduled tribes under sub-section (1) shall be such as may be prescribed, having regard to the population of the scheduled castes and the scheduled tribes in the state concerned heservation of training places for the sche= duled castes and the scheduled tribes in designa- explanation—in this section, the expressions "scheduled castes" and "scheduled tribes" shall have the meanings as in clauses (24) and (25) ted trades of article 366 of the constitution contract 4 (1) no person shall be engaged as an apprentice to undergo apprenticeship training in a designated trade unless such person or, if he of appren_ ticeship is a minor, his guardian has entered into a contract of apprenticeship with the employer (2) the apprenticeship training shall be deemed to have commenced on the date on which the contract of apprenticeship has been entered into under sub-section (1) (3) every contract of apprenticeship may contain such terms and conditions as may be agreed to by the parties to the contract: provided that no such term or condition shall be inconsistent with any provision of this act or any rule made thereunder, (4) every contract of apprenticeship entered into under sub-section (1) shall be sent by the employer within such period as may be prescribed to the apprenticeship adviser for registration (5) the apprenticeship adviser shall not register a contract of apprenticeship unless he is satisfied that the person described as art apprentice in the contract is qualified under this act for being engaged as an apprentice to undergo apprenticeship training in the designated trade specified in the contract (6) where the central government, after consulting the central apprenticeship council, makes any rule varying the terms and conditions of apprenticeship training of any category of apprentices undergoing such training, then, the terms and conditions of every contract of apprenticeship relating to that category of apprentices and subsisting immediately before the making of such rule shall be deemed to have been modified accordingly 5 where an employer with whom a_ contract of apprenticeship has been entered into, is for any reason unable to fulfil his obligations under the contract and with the approval of the apprenticeship adviser novation of contract of apprenticeship it is agreed between the employer, the apprentice or his guardian and any other employer that the apprentice shall be engaged as an apprentice under the other employer for the unexpired portion of the period of apprenticeship training, the agreement, on registration with the apprenticeship adviser, shall be deemed to be the contract of apprenticeship between the apprentice or his guardian and the other employer, and on and from the date of such registration, the contract of apprenticeship with the first employer shall terminate and no obligation under that contract shall be enforceable at the instance of any party to the contract against the other party thereto, | period of apprenticeship training, which shall be specified in + of apprenticeship, shall be as follows:— | period    ||-----------|| appren~   || ticeship  || training, |(a) in the case of trade apprentices who, having undergone tutional training in a schoo] or other institution recognised by al council, have passed the trade tests conducted by that uncil or by an institution recognised by that council, the period apprenticeship training shall be such as may be determined by it council; _ (@) in the case of trade apprentices who having undergone tutional training in a school or other institution affiliated to or ised by a board or state council of technical education or other authority which the central government may, by notifi- ion in the official gazette specify in this behalf, have passed the tests conducted by that board or state council or authority, period of apprenticeship training shall be such as may be presibed 3 (b) in the case of other trade apprentices, the period of apprenceship training shall be such as may be prescribed; (c) in the case of graduate or technician apprentices, the period mf apprenticeship training shall be stich as may be prescribed (1) the contract of apprenticeship shall terminate on the expiry of eriod of apprenticeship training (2) hither party to a contract of apprenticeship may make an appli- termination of apprenticeship contract on to the apprenticeship adviser for the termination of the contract, d when such application is made, shall send by post a copy thereof to other party to the contract 3) after considering the contents of the application and the objec- , if any, filed by the other party, the apprenticeship adviser may,  order in writing, terminate the contract if he is satisfied that the to the contract or any of them have or has failed to carry out terms and conditions of the contract and that it is desirable in the ests 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 8 (1) the centra] government shall, after consulting the central prenticeship council, by order notified in the official gazette, deterne for each designated trade the ratio of trade apprentices to workers ther than unskilled workers in that trade:  number of apprentices for a designated tradeprovided that nothing contained in this sub-section shall be deemed prevent any employer from engaging a number of trade apprentices excess of the ratio determined under this sub-section, (2) in determining the ratio under sub-section (1), the central government shall have regard to the facilities available for apprenticeship training under this act in the designated trade concerned as well as to _ the facilities that may have to be made available by an employer for the training of graduate or technician apprentices, if any, in pursuance of any notice issued to him under sub-section (3a) by the central apprenticeship adviser or such other person as is referred to in that sub-section, (3) the apprenticeship adviser may, by notice in writing, require an employer to engage such number of trade apprentices within the ratio determined by the central government for any designated trade in his establishment, to undergo apprenticeship training in that trade and the employer shall comply with such requisition: provided that in making any requisition under this sub-section, the apprenticeship adviser shail have regard to the facilities actually available in the establishment concerned (8a) the central apprenticeship adviser or any other person not below the rank of an assistant apprenticeship adviser authorised by the central apprenticeship adviser in writing in this behalf shall, having regard to— (i) the number of managerial persons (including technical and supervisory persons) employed in a designated trade; (vi) the number of management trainees engaged in the establishment; (iii) the totality of the training facilities available in a designated trade; and (w) such other factors as he may consider fit in the circumstances of the case, by notice in writing, require an employer to impart training to such number of graduate or technician apprentices in such trade in his establishment as may be specified in such notice and the employer shall comply with such requisition explanation—in this sub-section the expression "management trainee" means a person who is engaged by an employer for undergoing a course of training in the establishment of the employer (not being apprenticeship training under this act) subject to the condition that on successful completion of such training, such person shall be employed by the employer on a regular basis (4) several employers may join together for the purpose of providing practical training to the apprentices under them by moving them between their respective establishments (5) where, having regard to the public interest, a number of apprentices in excess of the ratio determined by the central government or in excess of the number specified in a notice issued under sub-section (3a) should in the opinion of the appropriate government be trained, the appropriate government may require employers to train the additional number of apprentices (6) every employer to whom such requisition as aforesaid is made, shall comply with the requisition if the government concerned makes available such additional facilities and such additional financial assistance as are considered necessary by the apprenticeship adviser for the "training of the additional number of apprentices (7) any employer not satisfied with the decision of the apprenticeship _ adviser under sub-section (6), may make a reference to the central apprenticeship council and such reference shall be decided by a committee thereof appointed by that council for the purpose and the decision of that committee shall be final 9 (1) every employer shall make suitable arrangements in his work- _ shop for imparting a course of practical training to every apprentice engaged by him in accordance with the programme approved by the apprenticeship adviser practical and basic training of apprentices,4 (2) the central apprenticeship adviser or any other person not _ below the rank of an assistant apprenticeship adviser authorised by the central apprenticeship adviser in writing in this behalf shall be given all reasonable facilities for access to each such apprentice with a view to test his work and to ensure that the practical training is being imparted in accordance with the approved programme: 7 provided that the state apprenticeship adviser or any other person not below the rank of an assistant apprenticeship adviser authorised by the state apprenticeship adviser in writing in this behalf shall also be given such facilities in respect of apprentices undergoing training in establishments in relation to which the appropriate government is the state government (3) such of the trade apprentices as have not undergone institutional training in a school or other institution recognised by the national council or any other institution affiliated to or recognised by a board or state council of technical education or any other authority which the central government may, by notification in the official gazette, specify in this behalf, shall, before admission in the workshop for practical training, undergo a course of basic training (4) where an employer employs in his establishment five hundred or more workers, the basic training shall be imparted to the trade apprentices either in separate parts of the workshop building or in a separate building which shall be set up by the employer himself, but the appropriate government may grant loans to the employer on easy terms and repayable by easy instalments to meet the cost of the land, construction and equipment for such separate building (4a) notwithstanding anything contained in sub-section (4), if the number of apprentices to be trained at any time in any establishment in which five hundred or more workers are employed, is less than twelve the employer in relation to such establishment may depute all or any of such apprentices to any basic training centre or industrial training institute  for basic training in any designated trade, in either case, run by the government (4b) where an employer deputes any apprentice under sub-section (4a), such employer shall pay to the government the expenses incurred by the government on such training, at such rate as may be specified by the central government ' (5) where an employer employs in his establishment less than five hundred workers, the basic training shall be imparted to the trade apprentices in training institutes set up by the government (6) in any such training institute, which shall be located within the premises of the most suitable establishment in the locality or at any other convenient place, the trade apprentices engaged by two or more employers may be imparted basic training (7) in the case of an apprentice other than a graduate or technician apprentice, the syllabus of, and the equipment to be utilised for, practical training including basic training shall be such as may be approved by the central government in consultation with the central apprenticeship council (7a) in the case of graduate or technician apprentices the programme of apprenticeship training and the facilities required for such training in any subject field in engineering or technology shall be such as may be approved by the central government in consultation with the central apprenticeship council (8) (a) recurring costs (including the cost of stipends) incurred by an employer in connection with practical training, including basic training, imparted to trade apprentices other than those referred to in clauses (a)' and (aa) of section 6 shall be borne— (@ if such employer employs five hundred workers or more, by the employer; (ii) if such employer employs less than five hundred workers, by the employer and the government in equal shares up to such limit as may be laid down by the central government and beyond that limit, by the employer alone; and (b) recurring costs (including the cost of stipends), if any, incurred by an employer in'connection with practical training, including basic training, imparted to trade apprentices referred to in clauses (a) and (aa) of section 6 shall, in every case, be borne by the employer; (c) recurring costs (excluding the cost of stipends) incurred by an employer in connection with the practical training imparted to graduate or technician apprentices shall be borne by the employer and the cost of stipends shall be borne by the central government and the employer in equal shares up to such limit as may be laid down by the central government and beyond that limit, by the employer alone related instruction of apprentices, 10 (1) a trade apprentice who is undergoing practical training in an establishment shall, during the period of practical training, be given a course of related instruction (which shall be appropriate to the trade) approved by the central government in consultation with the central apprenticeship council, with a view to giving the trade apprentice such theoretical knowledge as he needs in order to become fully qualified as a skilled craftsman (2) related instruction shall be imparted at the cost of the appropriate government but the employer shall, when so required, afford all facilities for imparting such instruction (3) any time spent by a trade apprentice in attending classes on instruction shall be treated as part of his paid period of work, (4) in the case of trade apprentices who, after having undergone a tse of institutional training, have passed the trade tests conducted by national council or have passed the trade tests and examinations ducted by a board or state council of technical education or any other (5) where any person has, during his course in a technical institution, become a graduate or technician apprentice ang during his apprenticeship training he has to receive related instruction, then, the employer shall telease such person from practical training to receive the related instruction in such institution, for such period as may be specified by the central apprenticeship adviser or by any other person not below the tank of an assistant apprenticeship adviser authorised by the central apprenticeship adviser in writing in this behalf ll without prejudice to the other provisions of this act, every employer shall have the following obligations in relation to an apprentice, namely: obligations of employers, (a) to provide the apprentice with the training in his trade in accordance with the provisions of this act, and the rules made thereunder; (0) if the employer is not himself qualified in the trade, to ensure that a person who possesses the prescribed qualifications is piaced in charge of the training of the apprentice; and (c) to carry out his obligations under the contract of apprentijceship = 12 (1) every trade apprentice undergoing apprenticeship training shall have the following obligations, namely: - (4) to learn his trade conscientiously and diligently and endeavour obligations of appren tices,to qualify himself as a skilled craftsman before the expiry of the period of training; | t (b) to attend practical and instructional classes regularly; (c) to carry' out all lawful orders of his employer and superiors in the establishment; and i (d) to catry out his obligations under the contract of apprenticeship f (2) every graduate or technician apprentice undergoing apprentice ship training shall have the following obligations, namely: - (a) to learn his subject field in engineering or technology conscientiously and diligently at his place of training; (b) to attend the practical and instructional classes regularly; (ec) to carry out all lawful orders of his employer and superiors in the establishment; (d) to carry out his obligations under the contract of apprenticeship which shall include the maintenance of such records of his work as may be prescribed payment 13 (1) the employer shall pay to every apprentice during the period - to apprenof apprenticeship training such stipend at a rate not less than the prestices cribed minimum rate, or the rate which was being paid by the employer on ist january, 1970 to the category of apprentices under which such ~ apprentice fails, 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 (2) an apprentice shall not be paid by his employer on the basis of piece work nor shall he be required to take part in any output bonus or other incentive scheme health, 14, where any apprentices are undergoing training in a factory, the safety provisions of chapters iii, iv and v of the factories act, 1948, shall apply ome in relation to the health, safety and welfare of the apprentices as if they welfare ee ule + ofappren were workers within the meaning of that act and when any apprentices tices, are undergoing training in a mine, the provisions of chapter v of the mines act, 1952, shall apply in relation to the health and safety of the apprentices as if they were persons employed in the mine hours 15 (1) the weekly and daily hours of work of an apprentice while of work,   sant  enter undergoing practical training in a workshop shall be such as may be time, prescribed | leave and if] (2) no apprentice shall be required or allowed to work overtime except holiwith the approval of the apprenticeship adviser who shall not grant such days approval unless he is satisfied that such overtime is in the interest of the training of the apprentice or in the public interest (3) an apprentice shall be entitled to such leave as may be prescribed and to such holidays as are observed in the establishment in which he is undergoing training emplo- 16 if personal injury is caused to an apprentice by accident arising out yer'sliabiof and in the course of his training as an apprentice, his employer shall be pee liable to pay compensation which shall be determined and paid, so far as sation may be, in accordance with the provisions of the workmen's comvensation for act, 1923, subject to the modification specified ia the schedule injury conduct 17 in all matters of conduct and discipline, the apprentice shall be and disgoverned by the rules and regulations applicable to employees of the corcipline, responding category in the establishment in which the apprentice ig undergoing training appren- 18 save as otherwise provided in this act,— ena (a) every apprentice undergoing apprenticeship training in a and not designated trade in an establishment shall be a trainee and not a workers worker; and (b) the provisions of any law with respect to labour shall not apply to or in relation to such apprentice, (1) every employer shall maintain records of the progress of records and returns, ling of each apprentice undergoing apprenticeship training in his ishment in such form as may be prescribed (2) every such employer shall also furnish such information and in such form, to such authorities and at such intervals as may be tibed 20 (1) any disagreement or dispute between an employer and an entice arising out of the contract of apprenticeship shall be referred settlement of disputes, to the apprenticeship adviser for decision, (2) any person aggrieved by the decision of the apprenticeship viser under sub-section (1) may, within thirty days from the date of nication to him of such decision, prefer an appeal against the ecision to the apprenticeship council and such appeal shall be heard and determined by a committee of that council appointed for the purpose (8) the decision of the committee under sub-section (2) and subject only to such decision, the decision of the apprenticeship adviser under sub-section (1) shall be final holding of test and grant of 21 (1) every trade apprentice who has completed the period of training shall appear for a test to be conducted by the national council to determine his proficiency in the designated trade in which he has undergone his apprenticeship training (2) every trade apprentice who passes the test referred to in subsection (1) shall be granted a certificate of proficiency in the trade by the national council ' certificate and conclusion of training (3) the progress in apprenticeship training of every graduate or technician apprentice shall be assessed by the employer from time to time (4) every graduate or technician apprentice, who completes his apprenticeship training to the satisfaction of the central apprenticeship council, shall be granted a certificate of proficiency by that council 22, (1) it shall not be obligatory on the part of the employer to offer any employment to any apprentice who has completed the peyiod of his apprenticeship training in his establishment, nor shall it be obligatory on the part of the apprentice to accept an employment under the employer offer and acceptance of employment,(2) notwithstanding anything in sub-section (1), where there is a condition in a contract of apprenticeship that the apprentice shall, after the successful completion of the apprenticeship training, serve the employer, the employer shall, on such completion, be bound to offer suitable employment to the apprentice, and the apprentice shall be bound to serve the employer in that capacity for such period and on such remuneration as may be specified in the contract: provided that where such period or remuneration is not, in the opinion of the apprenticeship adviser, reasonable, he may revise such period or remuneration so as to make jt reasonable, and the period or remuneration so revised shall be deemed to be the period or remuneration agreed to between the apprentice and the employer 