Concept%20Note%20on%20Amendment%20in%20Apprentices%20Act.pdf

## Ministry Of Skill Development And Entrepreneurship Shram Shakti Bhawan, New Delhi Soliciting Suggestions/Comments From General Public/Stakeholders On The Draft "Concept Note On Amendment In Apprentices Act, 1961"

General public/stakeholder is hereby informed that the Ministry of Skill Development and Entrepreneurship (MSDE) invites comments/suggestions on amendment in "Apprentices Act,
1961" with an objective to enhance the apprenticeship opportunities for youth. The "Concept note on Amendment in Apprentices Act, 1961" (in English and Hindi) duly approved by Hon'ble Minister for Skill Development and Entrepreneurship is attached herewith. Any person/stakeholder desirous of sending their comments/suggestions on the attached Concept Note may do so by through e-mail at anita.sriv@nic.in within thirty working days from the date of publication of the details of the invite.

CONCEPT NOTE   (Draft dated 18.3.2021)
Enhancing the apprenticeship opportunities for youth: Amendment of Apprentices Act,
1961

## Table Of Contents

| 1.                                                                     | Background of Apprenticeship Training in India                                 |    2 |
|------------------------------------------------------------------------|--------------------------------------------------------------------------------|------|
| 2.                                                                     | International perspective of apprenticeship training viz-a viz Indian scenario |    3 |
| 3.                                                                     | Apprentices Act, 1961 and its provisions                                       |    4 |
| 4.                                                                     | Reforms in apprenticeship training and the impact created                      |    6 |
| 5.                                                                     | Growth in apprenticeship training after the reforms                            |    8 |
| 6.                                                                     | Shift in approach to support "Atmanirbhar Bharat"                              |    9 |
| 7.    Union Budget 2021-Focus on apprenticeship                        | 10                                                                             |      |
| 8.    Stakeholder consultations and suggestions received from webinars | ……..……10                                                                       |      |
| 9                                                                      | Broad suggested areas for further amendments in the Apprentices Act,   1961    |      |

and   Apprenticeship Rules, 1992....................................................................................12

## Government Of India Ministry Of Skill Development And Entrepreneurship Concept Note Enhancing The Apprenticeship Opportunities For Youth: Amendment Of Apprentices Act, 1961 1. Background Of Apprenticeship Training In India

Apprenticeship training/on the job training carries a cultural value in the Indian traditional society. India has been practicing teacher-student lineage since ages under which a "master trainer" mentors the "trainee" who is the learner and thereby imparts the traditional skillsets. Even in the modern context, apprenticeship has been serving as an essential medium to skill development.  Purpose of apprenticeship trainingis to enhance employability of youth for their smooth transition into employment after the class room training, by equipping them with abilities, knowledge and skills necessary for the particular trade/occupation, thereby making them industry/work place ready. The apprenticeship training is also helping in creation of pool of skilled manpower for future demand of industries/ establishments

1.2
Apprenticeship training can play a major role in skilling/up-skilling India's workforce
and  meeting  the  need  of  industry  for  skilled  manpower.  Apprenticeship  helps  the apprentices to gain a labour-market relevant qualification and establishments get skilled labour force, resulting in win-win situation.  This can be well understood from demandsupply side. On the supply side, industry, economy has a scope to provide hands-on experience meeting the need for skilled workforce at a lesser financial burden. While on the demand side, large population of youth, also certified youth coming from long term and short term training system require industrial learning in the real life settings.
1.3
"Apprentices Act,  1961" and Apprenticeship  Rules, 1992  was enacted  with an
objective of regulating the program of training of apprentices in the establishments by utilizing the facilities available therein for imparting on-the-job training.  Ministry of Skill Development and Entrepreneurship (MSDE) is the administrative ministry responsible for implementation of this Act. Ministry of Education is also implementing this Act for two categories of engineering, i.e., graduate, degree and technician apprentices.
1.4
The National Policy on Skill Development and Entrepreneurship, 2015 focuses on apprenticeship as one of the key components for creating skilled manpower in India. Apprenticeship training was given high priority because it can play major role for on-thejob vocational training where youth can acquire skills by working at actual work place and at the same time he can also earn some stipend to financially support himself. Globally also, apprenticeship is considered as the best model for skill acquisition and earning while learning.

## 2. International Perspective Of Apprenticeship Trainingviz-A Viz Indian Scenario

Across the world, apprenticeship has emerged as one of the successful model to get skilled workforce for the industries. Apprenticeship training is a very effective way of enabling youth to have practical, on-the-job training, which meets the requirements of the industry,  offering  the  apprenticeships.  This  ensures  the  employability  of  apprentice trainees.  Countries  such  as  Germany,  Australia,  and  France  have  harnessed apprenticeship  and  derive  the  economic  benefits.  Countries  have  adopted  different approaches  to  reap  large  scale  benefits  from  apprenticeship  trainings.  Some  of  the developed  countries,  namely,Australia  and  United  Kingdom  have  adopted  mass apprenticeship  systems covering  the  non-graduate  jobs  across  all  sectors  in  the economy.  Subsequently,  United  Kingdom  has  marked  ten-fold  increase  in  the apprenticeships in less than a decade. 

| Country                                 | Indicator                                 | Performance                               |
|-----------------------------------------|-------------------------------------------|-------------------------------------------|
| France                                  | Part of a broader labour code             |                                           |
| National Artisan Moderation Body        |                                           |                                           |
| Coverage under Regulatory               |                                           |                                           |
| Framework                               |                                           |                                           |
| South                                   |                                           |                                           |
| Africa                                  |                                           |                                           |
| England                                 | The Apprenticeship, Skills, Children and  |                                           |
| Learning Act                            |                                           |                                           |
| Proportion of labor force               | Germany                                   | 3.7%                                      |
| 0.3%                                    | United                                    |                                           |
| States                                  |                                           |                                           |
| Australia                               | 3.7%                                      |                                           |
| Funding Structure                       | Australia                                 | The wage differs among occupations and is |
| linked to pay rates for that occupation |                                           |                                           |
| France                                  | Low wages that are set as a proportion of |                                           |
| the monthly national minimum wage       |                                           |                                           |
| Turkey                                  | Apprentice receives not less than 30% of  |                                           |
| the minimum monthly wage                |                                           |                                           |

Source: Based on ILO Report  on towards a model Apprenticeship Framework, A comparative Analysis of National Apprenticeship Systems, 2013
2.2
Currently,India has about 2.60 lakh apprentices in 2020-21 engaged in 18,300
establishments. However, Indian economy is majorly driven by its enterprises operating in the informal markets. Nearly 94% enterprises in the country, employing 11.09 crore operate in the informal sector and generate employment and livelihood opportunities for the masses. Even the industries of formal sector are heavily dependent on the enterprises in the informal sector functioning as ancillary units for large scale industries. 

2.3
It has been observed that implementation machinery of the Apprentices Act in India
has been not very effective because of most eligible establishments are not implementing the Act. Based on establishments listed in the Sixth Economic Census (2013-14), India should have around 20 lakh apprentices every year (assuming the minimum 2.5% of strength  of  establishments  employing  30  or  more  employees),  against  2.5  lakh apprentices being trained every year at present.  The majority of establishments come under the purview of State Governments that need to undertake more proactive efforts to reach  out  to  industry  for  strengthening  apprenticeships.  While  States  like  Gujarat, Haryana, Karnataka, Maharashtra and Uttar Pradesh and show relatively higher numbers of  apprenticeship  engagement,  there  is  potential  for  other  States  to  increase apprenticeship  engagements  too.  State  Universities  may  utilize  University  Grants Commission  (UGC)  permitted  provisions  for  apprenticeship-embedded  degrees  for enabling degree students to get formal skills that can make them employable.
2.4
Hence,  **India has immense untapped potential** for apprenticeship trainings. In
order to leverage apprenticeship it is crucial to bring reforms in the present form and adopt a targeted approach to bring about the desired outcomes. 

## 3. Apprentices Act, 1961 And Its Provisions

India has a well-established and regulated apprenticeship system. The "Apprentices Act, 1961" was enacted with an aim to fully utilize the facilities available in industries for imparting practical training and thus developing skilled manpower for industries. The main objectives of the Apprentices Act, 1961 are as under:

a) To regulate and promote the apprenticeship training in the industry. b) To  utilize  the  facilities  available  in  the  industry  for  imparting
on-the-job/practical  training  with  a  view  to  meet  the  requirements  of skilled manpower for the industry.
3.2
Initially, the subject of apprenticeship was under the purview of Ministry of Labour
and  Employment  (MoLE).  Regional  Directorate  of  Apprenticeship  Training  (RDATs), MoLE and State Apprenticeship Advisers (SAA) were mandated to play the major role in implementation  and  monitoring  of  apprenticeship.  In  April  2015,  the  mandate  of administering the Apprentices Act, 1961 was shifted to Ministry of Skill Development and Entrepreneurship (MSDE).
3.3
Apprentices  are  trained  in  a  chosen/selected  occupation  according  to  the
requirement of establishment in designated or in optional trade. This training take place at the actual workplace.
3.4
The Act regulates the programme of training that includes curriculum, period of
training, examination and certification and its related instructions during the on-the job
training. The Central Apprenticeship Council (CAC), a committee headed by Hon'ble Minister of Skill Development and Entrepreneurship, is an apex statutory body under the Apprentices Act, 1961 and it advises the Central Government on implementation of the Apprentice Act, 1961 in the country. 

## 3.5 Compliances Under The Apprentices Act, 1961 And Apprenticeship Rules 1992

Some of the important provisions/compliances of above Act and Rule are as under:

3.5.1 As per  Section 2 of the Act, establishments other than those falling under the Central  Government   jurisdiction  fall  under  the  jurisdiction  of  State  Government. Accordingly, State Apprenticeship Advisers (SAA) are responsible for  implementation of apprenticeship  training  in  the  State  Public  Sector  Units  (PSUs)  and  any  private establishment which is operating   business or trade from different location  situated in three or less States.
3.5.2 As per the Rule 7-B of Apprenticeship Rules, 1992, it is obligatory on the part of enterprises having a manpower strength of 30 or more to engage apprentices in a band of 2.5%  to  15%  of  their  total  manpower  strength  (including  contractual  staff).  Smaller enterprises  having  a  manpower  strength  ranging  from  4  to  29  employees  are  also permitted to engage apprentices in a band of 2.5% to 15% though this provision is voluntary for them. A contract of apprenticeship training is being signed between the establishments and apprentices before starting the training programme. 3.5.3 As per Rule 11 of the Apprenticeship Rules, 1992 establishments are liable to pay stipend to apprentices which ranges from Rs. 5,000 to 9,000 per month depending on the type of course and category of the apprentices. 3.5.4 As  per  Section  30  of  the  Act (Offences  and  Penalties),  State  Apprenticeship Advisers are empowered to issue Show Cause Notices  to all such establishments not complying with the provisions of  the above Act and Rules there on. Defaulters are liable for  a Rs.  5,000  per  shortfall  of  apprenticeship  per  month  for  first  three  months and thereafter, Rs.1,000 per month till such number of seats are filled up.

## 3.6 Implementing Agencies Of Apprentices Act, 1961

3.6.1 For establishments under Central Jurisdiction, the Regional Directorates of Skill Development and Entrepreneurship (RDSDEs) under the control of Directorate General of Training (DGT) are the implementing agencies for their respective states/ regions, in respect of all "Designated Trades". National Skill Development Corporation (NSDC) and CEOs of the Sector Skill Councils under the control of NSDC are the implementing agencies in their sectors, in respect of "Optional Trades". 3.6.2 For establishments under States jurisdiction, the respective State Governments are the appropriate authorities in respect of any establishments other than those coming under the  Central  government  jurisdiction.  State  Apprenticeship  Advisers  (SAA)  are implementing agencies in their regions in respect of all "designated trades" a well as "optional trades" for State Public Sector Units and private establishment falling under their jurisdiction as per the Apprentices Act 1961. They may also appoint the Mission Directors of the respective State Skill Development Missions (SSDMs) to act as implementing agency  for  all  establishments  under  the  state  government  jurisdiction,  in  respect  of "Optional Trades". 

## 4. Reforms In Apprenticeship Training And The Impact Created 4.1 Amendment In Apprentices Act (In 2014) And Apprenticeship Rules,(In 2019)

Realisingtraining facility in establishments were drastically underutilized and  there is huge potential for on the job training if managed efficiently, MSDE has taken various initiatives to articulate and analyse the challenges leading to low growth of apprenticeship training. MSDE has changed the approach and instead ofrigid and obsolete regulation, industry friendly reforms in Apprentices Act, 1961 were introduced.Reforms were also introduced in Apprenticeship Rules, 1992 to remove functional bottlenecks, make process simpler and transparent and to encourage establishments to come forward and engage apprentices. All these reforms were made after series of stakeholder consultations, discussion in Inter- Ministerial Group (IMG) meetings, seeking comments from public and deliberation on such comments in meetings of Central Apprenticeship Council (CAC), a statutory body under the Apprentices Act.  Based on consensus evolved in CAC, the  Act was amended by Parliament in 2014. Apprenticeship Rules, 1992 were subsequently amended in 2015
through a Gazette notification dated 16th June, 2015 and 25th September, 2019. 

These reforms  indicate  the  shift  in  the  government's  approach  from  regulatory  to promotional one.  Some of the major reforms under taken and advantage from those reforms are listed below:

1. Bringing Service sector under the ambit of Act: Services Sector accounts for
nearly 54% of India's Gross Domestic Product (GDP) and has potential for training in upcoming and evolving job roles. This has resulted in inclusion of sector like Banking, Retail, Logistics under the preview of Apprentices Act and creation of lot more apprenticeship opportunity for youth.
2. Empowering  employers  by  introduction  of  "Optional  Trade"  category:
Employers/establishments have given power to determine qualification, period of apprenticeship training, undertake assessment, issue certificate. 
3. Ease  in  engagement  of  apprenticeship:In  order  to  ease  the  process  of
engagement of apprentices, the jurisdiction of establishments which are operating in 4 and more states were changed to Central Government. This reform allowed
them to work with one Government instead of approaching to four different State governments. 

4. Simplification of processes and procedures through digital interphase: Online
system was introduced replacing the offline system of engaging apprentices. A dedicated  web-portal  (www.apprenticeshipindia.org)  was  launched  for  the management  of  apprenticeship  training.  The  portal  monitors  the  apprentices' lifecycle  starting  from  registration  of  establishments  and  apprentices,  contract approval, execution of training, examination and award of certificate to apprentices after completion of training programme. This has also resulted in reducing the compliances burden on establishments as all returns are filled on portal itself and no separate information are required to be submitted by them. 
5. Removal of stringent penalty clauses: The penal provisions of the Apprentices
Act, 1961 such as imprisonment by financial penalties only were removed so as to bring confidence amongst establishments and encourage them to participate in apprenticeship training. 
6. Permission to outsource basic training component: To reduce the burden of
infrastructure requirement by establishments for imparting classroom training to apprentices,  employers  were  permitted  to  out-source  the  component  of  basic training to fresher candidates.
7. Creation of an additional capacity of apprenticeship seats: The bandwidth of
engaging apprentices by establishments was raised from 2.5% - 10% to 2.5%-15%. Also,  manpower strength of  mandatory category of establishments,  was brought down to 30 from 40.This has led to the creation of an additional capacity of apprenticeship  seats  to  provide  opportunities  of  quality  training  for  a  large percentage of youth in the country.
8. Encouraging small establishments: In order to allow smaller establishments to
take advantage of apprenticeship training, the size-limit of an establishment willing
to engage apprentices on optional basis, has been changed from a bracket of 6-40 to 4-29. 
9. Rationalization of stipend:  Realizing that there is huge disparity in the stipend
payable to apprentices, alsofew situations have arisen in which a degree /diploma/ certificate holder apprentices were paid less than a 5th class pass apprentice. For example stipulated minimum stipend per month for the graduate apprentices is Rs 4,984 per month, for the technician apprentices is Rs 3,542 per month which fall short of the minimum stipend per month for the ITI- apprentices which was 70% of minimum wage of semi-skilled workers notified by the respective State or Union territory. Moreover, in the case of ITI apprentices, calculation of stipend was a complicated process. This has led not only to the exploitation of youth but also pose an impediment in the understanding of this program and its incentives for them. To overcome these challenges, fixed rates of stipend linked with educational and technical qualifications and category of apprentices were  prescribed. This has removed the anomalies of huge variation in rates of stipend of apprentices across the various categories of apprentices. 

10. Skilling through apprenticeship: Introduction of Degree Apprentices category
through embed apprenticeship in Degree courses and allowing any degree holder to undertake apprenticeship training for skilling. Retail, Logistics and Media SSCs (BBA  Logistics,  BSC  Visual  Communication,  B.Voc  in  Augmented  and  Virtual Reality Design, BBA in Retail Operations) were able to start Degree Apprenticeship courses.

## 5. Growth In Apprenticeship Training After The Reforms

With the introduction of "Optional Trade" category, apprenticeship is serving as a connecting bridge between the short-term and long-term skilling. Now, a candidate after undergoing short term skill training can join apprenticeship to gain industry  experience  and  can  further  progress  in  the  field.  Since  small establishments can engage apprentices now, this has helped them address the challenge of skilled manpower. 

5.2
Today, "Optional Trades" comprise ~30% of all apprenticeships in India (from a 7% share in 2018). Because of its characteristic flexibility and simplicity, it has evolved into a benchmark program that is recognized  and accepted  by industries and employers.  BIBA apparels, Burger King, Danske, Spencer's, Lemon Tree Hotels are few of the big companies that have hired apprentices as full-time employees post apprenticeship training. 

| Indicators                   | FY 2018-19   | FY 2019-20   | FY 20-21 (till January 21)   |
|------------------------------|--------------|--------------|------------------------------|
| Apprentices Engaged          | 14,668       | 88,343       | 1,13,000                     |
| Source: apprenticesindia.org |              |              |                              |

5.3
Overall growth in apprentices' engagement
These reforms have also shown significant achievements in the apprenticeship training post reform. The number of establishments (cumulative for designated and optional trade) registered a remarkable increment from 5,657 establishments in 2015-16  to  1,20,000  establishments  in  January,  2021.  Similarly,  there  is  a significant achievement in the apprentices enrolled in apprenticeship training over the years. The new apprentices' enrollment has witnessed a growth of 113% from 1.11 lakh apprentices in 2015-16 to 2.35 lakh apprentices in 2020-21.

## 6. Shift In Approach To Support "Atmanirbharbharat"

The COVID-19 pandemic disrupted the education sector, which is a critical determinant  of  a  country's  economic  future.  However,  COVID-19  is  also  an opportunity to prepare us better for the future by new and innovative learning and training delivery platforms to address this disruption. E-learning and IT enabled online platforms can emerge as not only solutions for COVID-19 times but also mechanisms for future leanings. India is one of the largest and fastest growing markets for digital consumers, with 560 million internet subscribers in 2018, second in the world after China. With growing mobile data users in rural and urban India, we should use this disruptive time to  explore  new opportunities of knowledge sharing and to give a push to our education system.

6.2
The economic crisis triggered by the coronavirus pandemic in 2020 gave birth to the "Atmanirbhar Bharat Abhiyan". As Atmanirbhar means 'self-reliant', it envisages to make India self-reliant based on five pillars of economy, infrastructure, technology driven system, vibrant demography, and demand. 
6.3
In order to address theserecent developments, there is need for effectively utilising apprenticeship training so as to provide industry ready skilled manpower. Further, as the Union Budget 2021-22 aims to create more apprenticeship opportunities, it becomes crucial to bring in reforms in terms of amendment of Apprentices Actto leverage policy push and make apprenticeship opportunities for youth.As one of the
central part of any reform is to satisfy the aspirations of apprentices which has been the spirit of Apprentices Act, 1961.

## 7.  Union Budget 2021-Focus On Apprenticeship

The Union Budget 2021 in its para 124 states:
"In 2016, we had launched the National Apprenticeship Promotion Scheme. The Government proposes to amend the Apprenticeship Act with a view to further enhancing apprenticeship opportunities for our youth" The Union Budget 2021-22 has been presented at a very crucial juncture when the Indian economy is recovering from daunting impact of pandemic COVID-19 and expectations of positive growth trajectory are becoming strong on the back of effective and meaningful economic reforms announced by the Government in last nine  months.  The  key  economic  and  business  indicators  have  instilled  the expectations of a strong, sustainable and higher growth trajectory in FY 2021-22.It would be desirable to  amend the Apprentices Act 1961 with a view to further enhancing apprenticeship opportunities for our youth.

## 8 Stakeholder Consultations And Suggestions Received From Webinars

Stakeholder consultations were organised for wider circulation of concept note on the proposed amendment in Apprentices Act, 1961and suggestions were invited. A webinar  was  organised  by  Ministry  of  Education  on  the  theme  "Harnessing Education, Research and Skill Development for an Atmanirbhar Bharat" on 3rd March 2021 for effective implementation of Budget Announcements 2021. The parallel break-away session IV on the theme "Making India Skill Capital of the World" was also held on 03.03.2021, New Delhi. Eminent panellists from the domain of skill development shared their views and valuable suggestions to make India skill capital of the world. More than 200 stakeholders from skill development domain  participated  in  an  interactive  discussion  and  shared  their  valuable suggestions on proposed amendments in the Apprentices Act, 1961.

Thereafter,  a  webinar  was  organised  on  4th March  2021  for  the  stakeholder consultation  on  implementation  of  Union  Budget,  2021  announcements related to Ministry of Skill Development and Entrepreneurship (MSDE). More than 150 government and private representatives participated and shared their valuable suggestions on proposed amendments in the Act. The suggestions received are as under:

## A) Policy Level Suggestions

•
Making apprenticeship compulsory in higher education, as a sandwich course (Germany apprenticeship is integrated into curriculum)
•
Stipend free apprenticeship for such courses.
•
University Grant Commission (UGC) should permit Skill University with different norms than that applicable to formal education universities
•
Improve Implementation of apprenticeship training
•
Amend  Shop  and  Establishment  Act  and  Companies  Act  to  mandate apprenticeship thereto
•
Government contracts should insist on having skilled labour - will boost demand for skilling and apprenticeship
•
Encourage all kinds of apprenticeship - online, onsite
•
Support under NAPS for MSMEs should be increased
•
Advocacy since Return on Investment (RoI) on Apprenticeship is good
•
All types of apprentices should be defined at one place
•
Differentiation between designated and optional trade should be removed and apprentices should get global option to choose any trade just like National Scholarship Portal
•
Define diploma apprenticeship along with degree apprenticeship
•
Three (3) more BOATs are coming but Act has pre-defined the locations so make the statements in Act more generic. 
•
The designated and non-designated trades should be managed by a single entity
•
Apprenticeship training portal may be redesigned to make it easier to use and operate
•
Defining  credit  based  system  and  integration  with  Higher  Educationapprenticeships can be introduced as a part of the curriculum in schools and engineering  colleges.  A  credit  based  pedagogy  and  framework  may  be developed  and  introduced  under  this  scheme.  Under  this  system,  the apprenticeship may get credits for their apprenticeship period as well as for their previous and current experiences. 
•
To increase awareness and make apprenticeship aspirational among youth
•
There may be provision where a student of Class 10 and above may be allowed to take up apprenticeship. This may involve reworking of Child Labour Laws.
•
Direct BenefitTransfer (DBT) by the Government to the apprentices account may be introduced.
•
Digital skills in accordance with industry 4.0 technology may be introduced under the scheme, aligned with employability and future of work.
•
The  scope  of  apprenticeship  may  be  aligned  with  State  Skill  Development Missions (SSDMs)
•
Sufficient budget allocation may be done for SSDM for apprenticeship

## B) Industry Level Suggestions

•
Cluster based approach to address MSME apprenticeship through TPA
•
Big industry should be accountable for franchisees and ancillaries also
•
MSME organizations can be given some additional financial incentives at least for a limited period so that they start adopting Apprenticeship. 
•
Industries from sectors like retail, logistics, IT-ITeS demanded to hike the upper limit of engaging apprentices to 25% of their manpower strength.
•
Some kind of financial incentive to be introduced for TPAs
•
Have finishing schools with industry for successful apprentices
•
Hostels for apprentices
•
The exit procedure for the employers may be simplified
•
With  gig  economy/platform  worker  and  flexible  employment  models,  an  edatabase/repository of skilled and credited (experience credit system or skill passport) workforce may be made available regionally to all industries along with integrated auto registration at employment exchange.

## 9.  Broad Suggested Areas For Further Amendments In The Apprentices Act, 1961 And Apprenticeship Rules, 1992

MSDE had invited suggestions during October 2020 from all stakeholders (including State  Governments)and  public  in  large  for  bringing  furtheramendments  in  the Apprentices Act, 1961. Based on the suggestions received, following are the areas suggested for further amendments in the Apprentices Act, 1961 and Apprenticeship Rules, 1992: Expected outcomes by the proposed amendment of Apprentices Act, 1961 are:


Enhancement in apprenticeship opportunities

Expansion of apprenticeship by inclusion of virtual learning modes

Ease of doing Business

Shift from government regulation to self- governance

Efficient system for compliances 

## 9.1Proposed Amendments: Enhancement In  Apprenticeship Opportunities 9.1.1 Change In Definition:

The definition of establishment needs to be changed to include educational institutions also, i.e., "any place where any trade/commerce/industry activity is taking place including educational/ training institutions."

## Anticipated Impact:

The  inclusion  of  educational/  training  institutions  too  in  the  definition  of establishment  may  enlarge  the  scope  of  apprenticeship  and  availability  of apprenticeship facilities at a larger scale. 

9.2
Proposed Amendments: Expansion of apprenticeship by inclusion of virtual learning modes

## 9.2.1  Permitting Use Of Online Mode For Imparting Training Under Specific Situation

Online training or training through virtual mode would be permitted in the following cases:

 (a) To allow the compulsory basic theoretical training, where applicable, to be given in virtual mode. (b)To  allow on-the-job training through virtual mode in certain modules in selected sectors/ occupations.
Anticipated Impact:  With the advent of COVID-19, leveraging technology in the most effective manner has become the need of the hour. Apprenticeship is no exception. Hence, addressing the recent developments, permitting training through virtual mode in select sectors and delivering compulsory basic theoretical training virtually would be helpful for the establishments as well as for apprentices. It is common, in many organizations such as the IT industry, where work is done online in a virtual environment wherein people operate from diverse locations and the  monitoring  of  the  program  outcomes  is  done  through  virtual  platforms. Considering  the  above  scenario,  wherever  in  the  normal  operations  of  an organization, a job role has moved to a virtual platform and it is a general practice to work through virtual connectivity, apprenticeship in that sector for such job roles could  be  permitted  on  such  virtual  platforms.  Accordingly,  Virtual  Classroom Training  (remote  learning  through  e-learning  modules)  could  be  made  as  an acceptable  mode  for  imparting  apprenticeship  training  for  theoretical  concepts during the Basic Training for all sectors. Also, for on-the-job training, specific job roles in specific sectorscould be delivered provided there is no dilution of the norms for on-the-job training. 

## 9.2.2 Allowing Part Time Apprenticeship Part Time Apprenticeship Would Be Permitted While Doing Other Academic Courses Under Formal Education System, Provided Such Apprenticeship Is Not An Integral Part Of The Academic Programme

Anticipated Impact: Permitting part-time apprenticeships during formal education system could help meeting the long felt need of the introduction of Apprenticeship Programme to improve employability of general stream students. The programme of apprenticeship will be so arranged that students can do training during evening or during semester breaks, over time period defined in course curricula. For doing this they would not need to take approval of university authorities or be part of a regular university programme.

## 9.2.3 Permitting  Indian  Companies  To  Send  Their  Apprentices  Abroad  For Apprenticeship

Indian establishments, having offshore sites, can send their apprentices to their own or clients' offshore sites outside India. Anticipated  Impact: This  is  one  of  the  pioneer  step  which  is  envisaged  by amendment in the Apprentices Act. Some of the big companies are having their work places at various locations of other nations. They may send apprentices to these locations. This step would enlarge the scope of apprenticeship trainings internationally. 

## 9.2.4 Permitting Multiple Training Venues

Allowing  multiple  training  venues  including  training  at  client/supplier locations or premise of other companies within India Anticipated Impact: The Act, in its present form, does not allow establishments to send their apprentices to client location. However, now in various sectors like security,  retail,  logistics,  etc.,  the  work  place  is  only  at  client's  location.  This amendment will help in expansion of apprenticeship training.

## 9.3 Proposed Amendments:  Ease Of Doing Business 9.3.1 Enhanced Roles For Third Party Aggregators:

Defining role and responsibilities for TPA in Act to relieve the establishments from the burden of paperwork for Apprenticeship. Empanelled  Third  Party  Aggregators  (TPAs)  may  support  employers  in  all functionalities of apprentice engagement, which will inter alia include:

a. Signing of contract with the apprentices on one side, and a consolidated
contract with the establishment on other side
b. Mobilizing the apprentices and in mapping their preferences with the demand
from  the  establishments  for  apprenticeship  opportunities  posted  on  the apprenticeship portal; 
c. Helping the establishment in identifying Basic Training Providers (BTPs). d. Do other paperwork e. Make stipends to apprentices on behalf of establishments (*to be debated*)
Anticipated Impact: In order to create ease of doing business for the industry, and engage larger number of apprentices to the MSMEs, TPAs may be engaged for assisting the industry. Third Party Aggregators (TPAs) which can work as facilitator on demand and supply side which can be a win-win solution for all the stakeholders in the apprenticeship training. The benefits which can be derived by all the relevant stakeholders by engaging TPAs are as under:

a) **Benefits for Industry:** Removing the burden of procedural work

Address the issue of time constraint which is faced by industry in fulfilling the documentation involved in apprenticeship.

Addressing the issue of lack of skilled manpower of industry. 

No separate manpower to complete the requisite documentation and compliances.

Assist small establishments to engage apprentices by providing mobilization support to candidates.

Fulfilling the following responsibilities/duties which otherwise an industry has to do:

Arranging  basic  training  through  Basic  Training  Providers (BTPs) for fresher apprentices

Assisting  establishments  getting  approval  for  basic Training Centres (BTCs) in case needed

To match the demand of establishments for apprentices with the candidates desiring to undergo apprenticeship 

Assisting  establishments  in  designing  courses  under apprenticeship  and  getting  this  aligned  to  National  Skill Qualifications Framework (NSQF) 

Signing of contract with the apprentices on one side, and a consolidated contract with the establishment on other side
b) **Benefits for Apprentice:** Counselling support for career progression
Since TPAs are well connected with the other schemes of skill development, these would be able to counsel apprentices and share updated information, which may help apprentices to opt for the best career progression.
c) Benefits  for  Government/MSDE: System  of  effective  monitoring  of
establishments can be setup through TPAs It is a difficult task to monitor individual establishment on the implementation of apprenticeship. However, as TPAs are directly reporting  to  MSDE, a mechanism can be established to monitor establishments through a network of TPAs. 

## 9.3.2 Reforms In Apprenticeship Examination And Certification Process- Making National Apprenticeship Trade Test Optional In Case National Apprenticeship Certificate Is Not Required.

Compulsory  National  Apprenticeship  Trade  Test  only  if  National Apprenticeship Certificate (NAC) required, or funding from Govt required. For  others,  establishment  may  conduct  their  own  examinations  under guidance of the awarding body, and get certificates. However, NAC exam may be held twice a year for candidates wanting to enrol and take up. NAC to be available for all trades. Anticipated Impact:  Assessment is one of the crucial process for ensuring quality assurance system in place. By bringing industry/employers on board and making them key stakeholder in Apprenticeship Examination would enhance the efficiency  of  system.  This  would  also  give  stimulus  for  industry  driven assessments in country meeting the need of skilled workforce.

## 9.3.3 Improving Embedded Academic Courses Including Degree Courses Role  And  Responsibilities  Of  Universities  Implementing  Apprenticeship Embedded Degree Courses Will Be Further Defined And Enabling Provision Will Be Added Permitting Stipend Free Apprenticeships In Such Embedded Courses

Anticipated  Impact:  University  Grant  Commission  (UGC)  has  released Guidelines for Higher Education Institutions to offer Apprenticeship/internship embedded  Degree  Programme  which  was  issued  on  24th July  2020.  The Guideline serve as a holistic document which is open for internship as well as for apprenticeship. However, it is silent on apprenticeship training implemented under  "Apprentices  Act,  1961".  Hence,  it  is  necessary  that  roles  and responsibilities of universities are clearly defined for smooth implementation of Degree Apprenticeship programme for the institutes opting for apprenticeship training under the ambit of "Apprentices Act 1961" to meet the mandatory compliances under the Act. Responsibility for stipend disbursement may also be given  to  Universities/institutes  implementing  embedded  apprenticeship  to facilitate industries/establishments in implementation. It  is  suggested  that  under  apprenticeship-embedded  degree/diploma/other academic programmes following may be laid down:


To permit only NCVET approved course:To permit universities/institutions to  implement  any  skill  course  approved  by  NCVET  as  per  the  credit framework

Introduce stipend free Apprenticeship: Stipend free apprenticeship may be introduced, as an enabling provision, for cases where apprenticeship is
an essential element part of an academic programme, with credits earned under apprenticeship being counted towards academic degree. . 

## 9.4 Proposed Amendments: Shift From Government Regulation To Self- Governance 9.4.1 From Contract Approval To Contract Intimation

Replacing the provision of contract approval by apprenticeship advisors, with provision of mere intimation of contract to the authorities Anticipated  Impact:  The  provision  of  contract  approval  in  a  prescribed  time duration would create ease of doing business for industry leading to reducing the procedural bottlenecks existing in the system. 

## 9.5 Proposed Amendments:  Efficient System For Compliances 9.5.1 From Penal Provisions To Executive Compliance Mechanism

Replacing the penal provisions of fine on shortfall in mandated intake of apprentices presently implementable only after cognizance is taken by the judicial  authorities  with  executive  fine  to  be  levied  by  implementation authorities. Anticipated Impact. This would help in better enforcement of Act, enabling fast disposal of action against such shortfalls, instead of burdening the judicial system further. 

## 9.5.2 Alignment With The New Labour Codes

Health, safety and welfare of apprentices to be aligned with newly introduced with relevant labour codes. Anticipated Impact: As one of the central part of any reform is to satisfy the aspirations of apprentices which has been the spirit of Apprentices Act, 1961. Aligning health, safety and welfare of apprentices with the relevant labour codes would ensure that the rights of apprentices are fully ensured and are not exploited as cheap labour. 

## 9.4 ��तािवत सं शोधन: सरकारी िनयमन से �व-शासन म� बदलाव 9.4.1 अनु बं ध�वीकृ ित से ले कर अनु बं धसू चना तक

अिधका�रय� को अनु बं धक� मा� सू चना के �ावधान के साथ िश�ु सलाहकार� �ारा अनु बं धअनु मोदन के
�ावधान को बदलना
��यािशत �भाव: एक िनधा� �रत समयाविध म� अनु बं धक� मं जू रीके
�ावधान से उ�ोग के िलए �ापार
करने म� आसानी पै दा होगी िजससे �णाली म� मौजू द ���या�मक बाधा� को कम �कया जा सकता है ।
9.5 ��तािवत सं शोधन: अनु पालन के िलए कु शल �णाली
9.5.1 दं डा�मक �ावधान� से ले कर काय� कारी अनु पालन तं � तक

अिनवाय� �प से लागू होने वाले िश�ु � के
                                       अिनवाय� से वन म� कमी पर जु मा� नाके
                                                                          दं डा�मक �ावधान�
को
    लागू
         करने
               के
                   बाद,
                         �याियक
                                 अिधका�रय�
                                             �ारा
                                                  काय� कारी अिधका�रय�
                                                                       के
                                                                           साथ
                                                                                काया� �वयन
अिधका�रय� �ारा लगाया जाने वाला जु मा� नािलया जाता है ।

��यािशत �भाव: इससे अिधिनयम के
                              बे हतर �वत� न म� मदद िमले गी, िजससे �याियक �णाली को और
अिधक �भािवत करने के बजाय, इस तरह क� कमी के िखलाफ कार� वाई का ते जी से िनपटान हो सके ।

9.5.2 नए �म कोड के साथ सं रे खण

�ासं िगक �म कोड के साथ िश�ु � के �वा��य, सु र�ा और क�याण को सं रे िखतकरना।

��यािशत �भाव:
               िश�ु � क�
                         आकां �ा� को
                                      सं तु � करना
                                                 ही
                                                     �कसी
                                                          भी
                                                              सु धार ���या
                                                                          का
                                                                             �मु ख
भाग म� से एक है और यही िश�ु ता अिधिनयम, 1961 क� भावना भी है । सं बं िधत�म सं िहता� के
साथ िश�ु � के �वा��य, सु र�ा और क�याण को सं रे िखतकरने से यह सु िनि�त हो सके गा �क िश�ु �
के अिधकार� को पू री तरह से सु रि�त �कया जा सके और स�ते �म के
                                                         �प म� उनका शोषण न �कया
जाए।


Concept%20Note%20on%20Amendment%20in%20Apprentices%20Act