Dear Team Please advise if a trainee can be eligible for Bonus? Is there any statutory obligation which says that Bonus amount has to be paid for Trainees? Regards Abhinav
From India, Chidambaram
From India, Chidambaram
Trainees are entitled to get all statutory payments and contributions including bonus. There can be a designation called Trainee but you cannot call one employee as trainee just to deprive him of the statutory contributions like ESI, PF, welfare fund and payments like wages at minimum wages rates fixed for each employment, bonus, gratuity etc. However, apprentices engaged following the Apprentice Act are not eligible for bonus.
Madhu.T.K
From India, Kannur
4260Madhu.T.K
From India, Kannur
Dear Abhinav,
I agree with my colleague Sh TK Madhu that trainee appointed by the company are covered under Payment of Bonus Act, 1965 provided he should be in receipt of salary not exceeding Rs. 21,000 per month (revised w.e.f. 1-4-2014) and who has worked for minimum period of 30 days in a year. The bonus payable to him is to be calculated as if his salary or wage were Rs. 7000.00 or the minimum wages for the scheduled employment, whichever is higher) per month. An employee getting a salary or wage exceeding Rs. 21000.00 per month is not entitled to get bonus under the Act.
BS Kalsi
Member since August, 2011
From India, Mumbai
I agree with my colleague Sh TK Madhu that trainee appointed by the company are covered under Payment of Bonus Act, 1965 provided he should be in receipt of salary not exceeding Rs. 21,000 per month (revised w.e.f. 1-4-2014) and who has worked for minimum period of 30 days in a year. The bonus payable to him is to be calculated as if his salary or wage were Rs. 7000.00 or the minimum wages for the scheduled employment, whichever is higher) per month. An employee getting a salary or wage exceeding Rs. 21000.00 per month is not entitled to get bonus under the Act.
BS Kalsi
Member since August, 2011
From India, Mumbai
Dear All
Trainees are not entitled for Bonus, PF and Minimum wages.
Definition of " employee " as per Section 2 (13) of the Payment of Bonus Act 1965 (pl see attachment) clearly and specifically excludes " apprentices ". In most of the Companies to differentiate between Act Apprentices (under Apprentices Act 1961) and Company Apprentices (as per Company's Standing orders), Apprentices directly recruited and trained in various trades / activities are called " Trainees ".
Supreme Court and also many High Courts and PF Appellate Tribunal have very clearly held that Trainees / Apprentices are excluded from the definition of " employee " for PF benefit as per Section 2 (f) of the EPF & MP Act 1952 (pl go through the attachments).
Trainees / Apprentices are only paid consolidated stipend and only very few State Govts have notified Minimum wages for Apprentices also. Unless there is specific notification for payment of minimum wages for Apprentices by the appropriate Govt, Trainees / Apprentices need not be paid minimum wages.
Regards
N Nataraajhan,Sakthi Management Services(Hp:+919483517402;e-mail:natraj@sakthimanagement.com)
From India, Bangalore
Trainees are not entitled for Bonus, PF and Minimum wages.
Definition of " employee " as per Section 2 (13) of the Payment of Bonus Act 1965 (pl see attachment) clearly and specifically excludes " apprentices ". In most of the Companies to differentiate between Act Apprentices (under Apprentices Act 1961) and Company Apprentices (as per Company's Standing orders), Apprentices directly recruited and trained in various trades / activities are called " Trainees ".
Supreme Court and also many High Courts and PF Appellate Tribunal have very clearly held that Trainees / Apprentices are excluded from the definition of " employee " for PF benefit as per Section 2 (f) of the EPF & MP Act 1952 (pl go through the attachments).
Trainees / Apprentices are only paid consolidated stipend and only very few State Govts have notified Minimum wages for Apprentices also. Unless there is specific notification for payment of minimum wages for Apprentices by the appropriate Govt, Trainees / Apprentices need not be paid minimum wages.
Regards
N Nataraajhan,Sakthi Management Services(Hp:+919483517402;e-mail:natraj@sakthimanagement.com)
From India, Bangalore
Only apprentices under Apprentices Act 1961 can be excluded from Bonus Act,gratuity Act ESI Act etc .Trainees under App Act and under Standing Orders of the Company are exempted from EPF Act.
From India, Thiruvananthapuram
From India, Thiruvananthapuram
Any employee apart from Apprentice, who has been recruited for a specific job for which the employee is a fresher, wherein training/skill need to be imparted are recruited as trainee but all statutory norms has to be followed wherein the employee is eligible for Bonus too.
From India, Ahmadabad
From India, Ahmadabad
Dear Sirs,
I have a disagreement on the above point.
As per the definition of employee under EPF act, two categories of apprentices are excluded, one is trainees under Apprentice act and another one is trainees engaged under the provisions of certified standing order.
There are a number of case laws including a recent one from EPF Appellate Tribunal, that upholds the exclusion of trainees from employees and hence need not deduct EPF.
From India, Coimbatore
I have a disagreement on the above point.
As per the definition of employee under EPF act, two categories of apprentices are excluded, one is trainees under Apprentice act and another one is trainees engaged under the provisions of certified standing order.
There are a number of case laws including a recent one from EPF Appellate Tribunal, that upholds the exclusion of trainees from employees and hence need not deduct EPF.
From India, Coimbatore
As Bonus Act has excluded the Apprentice from the Act, But not Defined the Definition of The Apprentice in the act, On need to see other Act reference for the same in this case we may refer 2 places
1. Apprentice Act : Says in Definition of Apprentice as "Trainee or Learner are apprentice" and if you say trainees are coming into this preview than they also come under Apprentice act all the relevant rule as defined in Apprentice is Applicable to those trainees also ie. Stipend, course syllabus, apprentice board approval etc.
So in this case, If Trainees are followed all the Procedure as per Apprentice act you can deprive them of Bonus.
2. Standing Order : This also has the same definition similar to Apprentice act Definition, An “apprentice” is a learner who is paid an allowance during the period of his training.
Means if employee is paid stipend allowance we can deprive them of Bonus
From India, Kolkata
1. Apprentice Act : Says in Definition of Apprentice as "Trainee or Learner are apprentice" and if you say trainees are coming into this preview than they also come under Apprentice act all the relevant rule as defined in Apprentice is Applicable to those trainees also ie. Stipend, course syllabus, apprentice board approval etc.
So in this case, If Trainees are followed all the Procedure as per Apprentice act you can deprive them of Bonus.
2. Standing Order : This also has the same definition similar to Apprentice act Definition, An “apprentice” is a learner who is paid an allowance during the period of his training.
Means if employee is paid stipend allowance we can deprive them of Bonus
From India, Kolkata
Trainee by designation is just like an employee. If you have facilities to apart training engage apprentices following the Apprentice Act. Otherwise, you should have a training scheme as per your own certified Standing Order approved by the Labour Department and engage trainees accordingly. All other kinds of engagement will be or should be deemed as an attempt to deprive them of the rights under Labour Laws. If you go through the various Acts and the interpretations given by various Courts you will come to know that neither the Acts nor the verdicts direct the employees a clean permission to hire trainees and pay them remuneration you like. If they are really engaged to give them training , let us follow the act available, ie, Apprentice Act. At the same time, if they are hired to put in work with same timing as applicable to other workers, same hardships etc, then pay them at least the minimum wages and all other statutory payments including bonus.
Madhu.T.K
From India, Kannur
Madhu.T.K
From India, Kannur
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