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Apprentices Act

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The Apprentices Act, 1961 regulates apprenticeship training in India: who may be engaged, on what contract, for what stipend and for how long. Its central rule is that an apprentice in a designated trade is a trainee and not a worker, which places them outside most labour legislation.

Trainee, not worker

The defining provision is section 18. Save as otherwise provided in the Act, every apprentice undergoing apprenticeship training in a designated trade is a trainee and not a worker.

That single sentence determines most of what follows. Because an apprentice is not a worker, the body of labour legislation that attaches to workers does not attach to them, and the Act supplies its own rules for hours, stipend, conduct and termination instead.

It also means an apprenticeship cannot be used as a way of obtaining ordinary labour on cheaper terms. The exclusion exists because the arrangement is training, and an arrangement that is in substance employment described as apprenticeship is not protected by the label.

The practical consequence for an employer is that apprentices need to be administered separately rather than folded into the ordinary payroll and HR treatment, because the rules genuinely differ.

Engagement and the contract

Section 4 requires a contract of apprenticeship. No person may be engaged as an apprentice in a designated trade unless that person, or their guardian where the person is a minor, has entered into a contract with the employer.

Section 3, read with section 1(4), sets the qualification. A person is not qualified to be engaged as an apprentice in a designated trade unless they are not less than fourteen years of age, and for designated trades related to hazardous industries a higher age applies.

Section 7 governs termination. The contract terminates on expiry of the training period. Either party may apply to the Apprenticeship Adviser to terminate it, and where the Adviser terminates for failure by the employer, the employer bears a consequence the section specifies.

The contract is therefore not a formality that can be completed later. It is the instrument that makes the engagement an apprenticeship at all, and engaging someone before it exists leaves the arrangement without the character the Act gives it.

Stipend, hours and numbers

MatterProvisionPosition
Stipends. 13Not less than the prescribed minimum rate, or the rate the employer was paying that category of apprentice on 1 January 1970, whichever is higher
Hourss. 15Weekly and daily hours of practical training are determined by the employer, subject to the prescribed training duration
Overtimes. 15Not permitted except with the Apprenticeship Adviser's approval
Numberss. 8The Central Government prescribes the number to be engaged for designated and optional trades; employers may band together to provide training

The stipend rule is unusual and worth reading carefully, because the 1 January 1970 comparison is a floor that survives from the original drafting and can exceed the prescribed minimum for some categories.

On numbers, some states add their own requirements on top of the central prescription, so an employer operating across states cannot assume one figure applies everywhere.

After the training

Section 22 deals with what happens when training ends, and it has been amended.

Section 22(1), as amended, provides that every employer shall formulate its own policy for recruiting any apprentice who has completed the period of apprenticeship training in the establishment.

The obligation is therefore to have a policy, not to employ. An apprentice who completes training acquires no automatic right to a job, and an employer who takes on apprentices with no intention of recruiting any of them is not breaching this provision by declining to.

What the provision does require is that the position be decided and stated rather than left to case-by-case discretion, which is a modest obligation frequently overlooked because it produces no immediate consequence.

The penalties changed in 2026

This is the part most likely to be out of date in any material an employer is currently relying on.

Section 30 was substituted wholesale by the Jan Vishwas (Amendment of Provisions) Act, 2026, Act 8 of 2026, with effect from 22 June 2026. The substitution covers a list of contraventions including breaching the prescribed number of apprentices, refusing or falsifying information or returns, and obstructing an Apprenticeship Adviser.

Anything describing the penalty position under this Act from before that date describes a regime that no longer exists. Given the amendment took effect two months before this entry was written, that includes a great deal of the guidance currently in circulation.

The amounts and the mechanism are not stated here. They should be read from the substituted section directly rather than taken from a summary, precisely because this is an area where summaries have not caught up.

Statutory reference

Act
Apprentices Act, 1961
Section
Section 18 (an apprentice in a designated trade is a trainee and not a worker); section 4 (contract of apprenticeship, entered into by the guardian where the apprentice is a minor); section 3 with section 1(4) (qualification: not less than fourteen years of age, with a higher age for designated trades related to hazardous industries); section 7 (termination on expiry of the training period, and on application to the Apprenticeship Adviser); section 13 (stipend at not less than the prescribed minimum rate or the rate paid by that employer on 1 January 1970 to the category concerned, whichever is higher); section 15 (hours of practical training determined by the employer, no overtime except with the Apprenticeship Adviser's approval); section 8 (the Central Government prescribes the number of apprentices); section 22(1) as amended (every employer shall formulate its own policy for recruiting apprentices who complete training); section 30 as substituted by the Jan Vishwas (Amendment of Provisions) Act, 2026, Act 8 of 2026, with effect from 22 June 2026 (penalties).
Key limits
Note that some states add their own requirements on numbers, so a single central figure does not apply everywhere.

Source

Frequently asked questions

Are apprentices employees?

No. Section 18 of the Apprentices Act, 1961 provides that an apprentice undergoing training in a designated trade is a trainee and not a worker, which places them outside most labour legislation. The Act supplies its own rules on stipend, hours and termination instead.

Is a written contract required for an apprentice?

Yes. Section 4 requires a contract of apprenticeship, entered into by the apprentice or, where they are a minor, by their guardian. The contract is what gives the engagement the character of an apprenticeship rather than being a formality to complete later.

What stipend must an apprentice be paid?

Under section 13, not less than the prescribed minimum rate, or the rate the employer was paying that category of apprentice on 1 January 1970, whichever is higher. The 1970 comparison is a surviving floor that can exceed the prescribed minimum for some categories.

Must an employer hire an apprentice after training?

No. Section 22(1) as amended requires every employer to formulate its own policy for recruiting apprentices who complete training. The obligation is to have a policy and state a position, not to employ anyone.

What is the minimum age to be an apprentice?

Not less than fourteen years under section 3, with a higher age applying for designated trades related to hazardous industries.

Have the penalties under the Apprentices Act changed?

Yes, substantially. Section 30 was substituted wholesale by the Jan Vishwas (Amendment of Provisions) Act, 2026 with effect from 22 June 2026. Guidance written before that date describes a regime that no longer exists, and the substituted section should be read directly rather than through a summary.

How Engage handles apprentices

Engage keeps apprentices in a distinct population with their own stipend, hours and contract dates rather than as employees with exceptions, so the rules that genuinely differ are applied rather than worked around. Training period end dates sit against the record, which is what makes the recruitment policy decision a scheduled one instead of a lapse.

See workforce management in Engage
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