Engagement Of Trainees By The Contractor

Can a registered Contractor engage fresh ITIs / Graduates as Trainees on the following terms: -
1. Stipen Rs.2000/- per month (obviously this is less than Minimum wages)
2. Provident Fund - Not Applicable
3. Canteen Facilities - Yes
4. Safety shoes/Helmets - Yes.
5. After six months of training, performance will be evaluated and successful candidates will be recruited as Semi-skilled Technicians on payment of applicable Minimum wages plus PF etc.

If the contract is for supply of trainees, then it will be permissible. If otherwise, then the contractor cannot deploy the trainees in the principal employer's premises to fulfill the contractual obligations. However, he can deploy them over and above the number of eligible persons, to have training. For example, if the contract is for supplying 50 labourers, the contractor can supply 50 eligible labourers and in addition to that he can deploy some trainees also, at his own empense. (Ofcourse, no contractor may do so!).

No he cannot enagage trainees within the meaning of the Contarct Labour Act.for supplying to principal employer.
B.Saikumar
HR & labour Law Advisor
mumbai

You need not allow Contractor to train his personnel at your cost.It may affect the quality of your product/services unless you close supervise them which in turn will be a employer-employee relation.Trainees are not exempted from EPF or ESI unless they are under App Act or under the Standing orders of the estt.
VARGHESE MATHEW
9961266966

Engage trainee through Registered contractor is not permissible in any part of India. Trainees can be engaged by the Principal employer only & stipend rate also cannot be less than the rate decided by the Board of Apprentices Trainees.