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ravit (n/a)     28 January 2011

Trainees Comes under EPF and ESIC Act

Dear All,

I have a query on trainees salary. If any company takes trainees & salary is paid in the form of stay fund it comes under EPF & ESIC?

If they not comes under above mentioned acts, then what will be the limitation to take trainees?

Pl clarify this query.


Ravi Kumar.T.


 8 Replies

Rakesh (worker)     29 January 2011


Hello all,I want to know the consequences of breach of contract.Am a fresher and had joined a company on 6th of december 2010.It had a bond(2 years + 6 months training).
But i skipped the bond on jan 27th 2011 and sent them a resignation letter stating that i will not be able to 
render my services.If i breach the contract then i have to pay 60000 rs to the company.It was not on any bond paper,i had signed the contract on a sheet.
I want to know whether the company can take any legal action against me for breach of contract 

Kamal Prasoon Sinha (Service)     31 January 2011

Trainee under Apprentice Act are not covered by EPF & ESIC but trainee taken under the standing order are covered under both these acts.




Kirti Kar Tripathi (lawyer)     01 February 2011


Dear Kamal,

There is difference between trainee and Apprentice. Apprentice are engaged under the Apprentice Act where are trainees are appointed by the employers under their own rules and/or standing orders. Thus trainees are covered by EPF Act.


Kamal Prasoon Sinha (Service)     01 February 2011

Dear Mr. Kirti,

You are absolutely right and this is what i have mentioned in my reply. I have mentioned about trainees under Apprentice Act and trainees under standing order of the company.

Trainees appointed under Apprentice Act are not covered by EPF & ESIC whereas trainees appointed under standing order of the company are covered by EPF & ESIC.




P.C. Joshi (service)     24 December 2013

Dear Learned members,


Please also let me have your view  whether a management trainee and or an apprentice is covered under Minimum Wages Act and the employer is required to pay them a minimum wages as per their skill.


Thanks & regards


P.C. Joshi

Sudhir Kumar, Advocate (Advocate)     31 December 2013

trainee not covered under EPF & ESI

Sudhir Kumar, Advocate (Advocate)     31 December 2013

section 2(i) of the Minimum wages Act

(i) “employee” means any person who is employed for hire or reward to do any work skilled or unskilled manual or clerical in a scheduled employment in respect of which minimum rates of wages have been fixed; and includes an out-worker to whom any articles or materials are given out by another person to be made up cleaned washed altered ornamented finished repaired adapted or otherwise processed for sale for the purposes of the trade or business of that other person where the process is to be carried out either in the home of the out-worker or in some other premises not being premises under the control and management of that other person; and also includes an employee declared to be an employee by the appropriate government; but does not include any member of the Armed Forces of the Union.

Sunil kumar t r (Law Officer)     09 February 2015

As per minimum wages act 1948, minimum wages are applicable when there exists employer - employee relationship.

As per sec(18) apprentice act 1961, Apprentice are trainees but not employees.

As per supreme court order - Appeal (civil) 978 of 2000, the trainees were ’apprentices’ engaged under the ’Industrial Standing Orders’ of the establishment.

Therefore it can be safely concluded that, when a trainee is appointed under industrial standing orders of the establishment, a 'trainee is a apprentice'. Hence, the trainee is governed by Apprentice Act 1961.

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