Restriction on the no. of trainees engaged

This query is : Resolved 

20 June 2009

The ESIC authorities have quoted Madras High Court Judgment in "PTC Vs Appellate Authority" dated 1975 that the under the Model Standing Orders the no. of apprentice/trainees to be engaged in an establishment should not exceed 5%. If exceeds, the trainees will be treated as employees and ESI subscription should be paid. Can any of the friends help in finding out the details of the judgment and the context in which this was made?
Commonsense dictates that there cannot be any restriction in the no. of trainees to be engaged in an establishment.
Thank you.

Swami Sadashiva Brahmendra Sar (Expert)
20 June 2009

this verdict was given 34 yrs back. since then there have been drastic changes in labour jurisprudence. have you checked that there is no change in judicial view on this point?

S. Krishnamoorthy (Querist)
20 June 2009

Dear Dr. Tripathi,
It is nice of you to have answered my query.
I am unable to get hold any updates. The Industrial Establishment Standing Orders have no such restrictive clause. My client is a BPO with call center. Attrition of employees is more pronounced. If 50 trainees are inducted, 40 leave within a month. The remaining leave thereafter. Thus the induction of trainees is an unending process.
I also thought that the judgment might have been given in a given context. I am unable to lay my hands on it.
I shall be grateful for any help.
S. Krishnamoorthy

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