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Hi,

We take students for project work/internship for three to six months duration. We are not covered under the Apprentice Act. We pay them a stipend. Some students work on-site (customer sites), while some work in-house. Do we need to cover ESI and PF for them?

Thanks,
Usharani Manne

From India
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If your unit is covered under ESI, then ESI has to be covered for the apprentices as well, irrespective of the place of work. They need not be covered under EPF as long as they are apprentices. However, if they are trainees, they have to be covered under EPF as well.

M. Venkatraghavan

From India, Selam
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Dear Usharani ji,
You said, you take students for project work / internship. 
My questions to you:
i . Is this project work / internship part of study / syllabus? 
ii. Are they taken on the basis of their college recommendation?
iii. What they do at costomer sites and what do you mean by work at house?
According to my view, if the project work / internship is not a part of their study and they are not recommended by their college, you are liable to cover them under PF and ESI. You may call them as apprentice. You may call them as trainee or you may call them as interns. You may say that you are not paying them salary and paying them stipend. The very fact is that they are not apprentices under Apprenticeship Act or not Trainees under Standing Order Act.
However you may exclude them from ESI on the ground of outside work under certain circumstances.
You are requested to go thru the below  given link:
https://www.citehr.com/showthread.php?t=447790 <link fixed>

From India, Mumbai
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Dear UM According to my knowledge ,They may cover in WC policy ( un named policy)not in ESI & PF devendra
From India, Pune
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Thank you for the response.

1. The students are recommended by the college.
2. It is part of their curriculum.
3. On-site means they go to customer sites and practically learn.
4. In-house means they work and learn without moving out of our premises.

From India
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Dear Usharani ji, No PF, no ESI is applicable to them. There is no relationship between you and them of employee and employer. No labour law is applicable to them.
From India, Mumbai
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Dear Usha Ji,

I endorse the views of Mr. Koragaonkar, but in my view, much depends upon the nature of activities carried out by your establishment. The employment given to such students by your establishment after the completion of training, etc., is crucial. It would be beneficial for you to take up the matter with the concerned authorities along with all the details.

Chandok AK
RPFC (Retd.)
[Link removed]

From India, Chandigarh
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Anonymous
Dear Legends,

I am Ravi, working as an HR Generalist in an IT company based in Chennai. We are in the process of renaming our Chennai branch and I would appreciate your suggestions for a new name for the branch process as soon as possible.

Regards & Thanks,
Ravindharan
Human Resource Department

From India, Chennai
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