Seeking Advice on Legal Guidelines for Hiring Fixed Term Trainees for 2 Years

Dear Seniors,

Our company is planning to recruit Fixed Term Trainees (FTT) for a 2-year period. I need guidelines for the below queries:

1. Is a 2-year period legally acceptable? If so, will the person be eligible to apply for a permanent role?
2. If we appoint FTTs, what legal compliance do we need to fulfill?
3. Should FTTs be considered as Workmen under the Factories Act 1948?
4. Are there any other schemes or ways to engage individuals with minimal statutory obligations from the employer?

Please guide me.

Regards,
Sakthi

There is the Apprenticeship Act of 1962. Under the act, there are numerous designated trades. Take a look at the trades. The period of training is also specified for each trade, and the rate of stipend is also specified. There is no statutory obligation to appoint apprentices after training.

Dear Mr. GPL,

Thank you for your reply. What you said is appropriate, and we are going to appoint them as a trainee for a 2-year period as FTT in non-core activities. We decided to recruit Arts degree/HSC/+2/PUC completed individuals. Do they come under the Apprenticeship scheme? Is there any Agency/Board, apart from the Board of Apprenticeship, available to enroll and engage individuals through the agency in Tamil Nadu? Please guide me.

Regards,
Sakthi

For what purpose do you want to engage FTT and how many persons are going to be engaged for non-core activities? Is there any provision in your certified Standing Orders to engage trainees? Also, if your industry is covered under the Minimum Wages Act, then the same cannot be skipped. In Tamil Nadu, nowadays, only a below the required number of persons are available for such non-core category jobs, and hence you can approach any outsourcing services agency for the help required by you.

M Venkatraghavan

Dear Mr. Venkatraghavan,

Thank you for your input. We are not covered by the IE(SO) Act since we don't have 100 workmen in our company; instead, we are covered by the MW Act. In that case, what would be your suggestion? Please share.

Regards,
Sakthi

As per the information provided by you, you are engaging employees under the "Nomenclature" of "Fixed Term Trainees" for your regular work for a fixed period of 2 years. They come under the definition of "Employee" under EPF, ESI, ID, Factories Act, etc. All labor laws are applicable to them by virtue of the job performed. There is no issue with regard to the training period of 2 years. Just find out under applicable minimum wages - 75% of wages can be paid to trainees during the training period.