Apprentices Act

The Apprentices Act, 1961 is an Indian law that regulates apprenticeship training and lays down the framework for engaging and training apprentices across different industries.

An Act Apprentice is a person engaged under a formal contract of apprenticeship to receive practical and theoretical training in a particular trade or field. The Act sets out the requirements around eligibility, training, stipend, employer responsibilities, and the legal status of apprentices.

What is Apprentice Act? Definition and Legal Meaning

The Apprentices Act, 1961 provides the legal framework for apprenticeship training in India. An Act Apprentice is a person undergoing apprenticeship training under a contract of apprenticeship in a designated trade or optional trade covered by the Act.

The contract defines the apprenticeship arrangement, including the trade or subject, duration of training, stipend, and other applicable conditions.

Statutory Definition under the Apprentices Act, 1961

The Act defines an apprentice as a person undergoing apprenticeship training under a contract of apprenticeship.

In practical terms, an apprentice under the Act must:

• Meet the prescribed eligibility requirements.
• Enter into a contract of apprenticeship.
• Be engaged for training in a designated or optional trade, occupation, or subject covered by the apprenticeship framework.
• Complete the training according to the applicable requirements.

Act Apprentice vs General Trainee: Key Distinction

An Act Apprentice and a general trainee may both learn through practical work, but their legal arrangements are different.

Act Apprentice	General Company Trainee
Engaged under a contract of apprenticeship	Engaged under the company’s own trainee arrangement
Governed by the Apprentices Act and applicable rules	Governed by the terms of the company’s arrangement and applicable laws
Receives the applicable apprenticeship stipend	Payment depends on the terms of the trainee arrangement
Follows a defined apprenticeship training structure	Training structure depends on the employer

The distinction matters for HR teams because the legal status comes from the apprenticeship contract and applicable requirements, not simply from the person’s designation.

What is the Apprentices Act 1961?

The Apprentices Act, 1961 was enacted to regulate apprenticeship training and provide a structured way for people to develop practical skills in an industry.

The Act covers areas such as:

• Apprenticeship contracts
• Eligibility and qualifications
• Training requirements
• Stipend payment
• Working hours, leave, and holidays
• Health, safety, and welfare
• Assessment and certification
• Employer responsibilities
• The legal status of apprentices

The Act is administered under the Ministry of Skill Development and Entrepreneurship, with DGT and the Boards of Apprenticeship Training playing roles for different categories of apprentices.

Purpose and Objectives

The purpose of the Apprentices Act is to help people gain practical skills through structured training in an industry.

Apprenticeship combines workplace experience with the theoretical or basic instruction required for the relevant trade or field. This gives candidates an opportunity to develop practical skills while following a defined training framework.

For employers, apprenticeship also provides a formal way to train people for specific skills and roles instead of relying only on informal workplace training.

Key Amendments: 1973, 1986, 2014, and 2019

The Apprentices Act has been amended over the years to expand its scope and make apprenticeship training more relevant to changing industry requirements.

The major amendments include:

• 1973: Expanded the scope of apprenticeship training beyond the original framework.
• 1986: Introduced coverage for graduate and technician apprentices.
• 2014: Made major changes to the apprenticeship framework, including the introduction of optional trades and greater flexibility for employers.
• 2019: Further changes to the Apprenticeship Rules revised requirements relating to engagement, training, and stipends.

These reforms gradually expanded apprenticeship beyond traditional industrial trades to include graduates, diploma holders, vocational candidates, and a wider range of occupations.

Who is an Apprentice Under the Act?

An apprentice is a person undergoing apprenticeship training for a specific industry, trade, occupation, or subject under a contract of apprenticeship.

The person must meet the eligibility requirements for the relevant category and be registered through the prescribed apprenticeship process.

The apprenticeship contract generally records details such as:

• The trade or subject
• Duration of training
• Stipend
• Terms and conditions of the apprenticeship

The general minimum age for an apprentice is 14 years, while the minimum age is 18 years for hazardous trades or occupations.

The candidate must also be linked to a designated or optional trade covered by the apprenticeship framework. Other eligibility requirements, including educational qualifications and age limits, can vary depending on the category and trade.

Types of Apprentices Under the Act

The Apprentices Act recognizes five categories of apprentices:

Trade Apprentices

Trade apprentices undergo training in designated trades. Depending on the trade, candidates may need to have passed Class 8, 10, or 12 or hold an ITI qualification.

The training combines practical workplace experience with the basic training and related instruction prescribed for the trade.

Graduate and Technician Apprentices

Graduate apprentices are candidates who hold the required degree qualification. Engineering graduates are among those who may be eligible for graduate apprenticeship in the relevant field.

Technician apprentices generally hold a diploma or equivalent qualification. Their apprenticeship combines technical education with practical experience at the workplace.

Technician (Vocational) Apprentices

Technician (vocational) apprentices are candidates who have completed the prescribed vocational qualification.

Their apprenticeship allows them to apply their vocational knowledge in a practical work environment and build skills relevant to their field.

Optional Trade Apprentices

Optional trade apprentices are trained in trades or subjects identified under the optional trade framework.

This category was introduced through the post-2014 reforms and gives employers greater flexibility to create apprenticeship opportunities for roles that aren’t covered by the designated-trade list.

Designated Trades vs Optional Trades

What are Designated Trades?

A designated trade is a trade notified by the Central Government under the Apprentices Act.

These trades have a prescribed curriculum, training structure, and duration. The relevant apprenticeship authorities establish the training and assessment framework for these trades.

There are more than 260 designated trades in the apprenticeship framework, covering a range of technical and industrial occupations.

What are Optional Trades?

An optional trade is a trade or subject identified by an establishment for apprenticeship training where the role does not fall within the designated-trade list.

The optional trade framework gives employers more flexibility to develop training around industry-specific roles and skills.

An employer still needs to follow the prescribed process for registering the optional trade and apprenticeship. Depending on the category, this may involve the applicable apprenticeship portal and authority, such as NATS.

How Do Employers Choose Trades?

The choice depends on the role for which the employer wants to train an apprentice.

• Designated trade: Use this route when the role matches a trade notified under the Apprentices Act.
• Optional trade: Use this route when the role isn’t covered by the designated list, and the employer meets the requirements for an optional trade.
• Training plan: The selected trade or subject should match the actual training the apprentice will receive.

An organization can use both designated and optional trades for different roles.

What is Apprenticeship Training?

Apprenticeship training is a course of training provided under a contract of apprenticeship. It combines theoretical or basic instruction with practical training at the workplace.

Components of Training

Apprenticeship training generally consists of:

• Basic training: Provides the foundational knowledge and skills required for the relevant trade or subject.
• On-the-job training (OJT): Gives the apprentice practical experience at the workplace.

For designated trades, the training follows the syllabus and standards prescribed by the relevant authorities, including NCVT or SCVT where applicable.

Duration of Training

The duration of apprenticeship depends on the trade, qualification, and category of apprentice.

Training can range from six months to three years, depending on the requirements of the particular apprenticeship.

The exact duration should be specified in the apprenticeship arrangement and checked against the requirements applicable to the selected trade or category.

Applicability of the Apprentices Act

The Apprentices Act applies to industries and areas covered by the Act and notified by the Central Government. It also applies to special apprenticeship schemes notified by the Central Government.

This means the Act does not automatically apply to every establishment. The establishment, industry, trade, or apprenticeship scheme must fall within the scope of the applicable provisions.

Establishments Covered

Apprenticeship training can cover establishments in sectors such as:

• Manufacturing
• Mining
• Services
• Information technology
• Other notified industries and occupations

The authority responsible for apprenticeship can also vary by category. DGT handles applicable trade apprenticeship functions, while BOAT/BOPT are involved in graduate, technician, and technician (vocational) apprenticeships.

Exemptions and Thresholds

The Apprenticeship Rules prescribe workforce thresholds and engagement requirements for establishments.

Establishments with four or more workers are eligible to engage apprentices. However, engagement is not mandatory for establishments with fewer than 30 workers. Employers should check the applicable apprenticeship requirements for their establishment and workforce.

Employers should check the applicable rules and notifications for their establishment when determining whether apprenticeship engagement is mandatory and how many apprentices they need to engage.

Eligibility Criteria for Apprentices

The eligibility requirements depend on the apprenticeship category and trade. A candidate may need to meet the following conditions:

• Educational qualification: Requirements can range from Class 8, 10, or 12 to ITI, diploma, or degree qualifications, depending on the trade and category.
• Age: The general minimum age is 14 years, while hazardous trades require the candidate to be at least 18 years old.
• Upper age limit: Where an upper age limit applies, it depends on the relevant apprenticeship category and rules.
• Physical fitness: Candidates must meet the applicable physical fitness standards.
• Identity and registration: Candidates need to complete the prescribed registration process and provide the required documents, including Aadhaar, where applicable.
• Apprenticeship contract: The candidate must enter into the prescribed contract of apprenticeship.

For example, a trade apprentice may need an ITI qualification in the relevant trade, while a graduate apprentice generally needs the relevant degree, and a technician apprentice generally needs the relevant diploma.

Apprentice Act in Railway: Meaning and Application

An Act Apprentice in Indian Railways is generally an ITI-qualified candidate engaged under the Apprentices Act for training in a Railway workshop, production unit, or other eligible Railway establishment.

Railway apprenticeship gives candidates practical exposure to technical and trade-related work in a real Railway environment.

Railway Trades and Training Centers

The trades available depend on the requirements of the particular Railway establishment and its apprenticeship notification.

Common trades include:

• Fitter
• Electrician
• Welder
• Machinist
• Carpenter
• Turner
• Painter
• Mechanic-related trades

Training takes place through Railway workshops and training centers, where apprentices gain practical experience along with the required trade instruction.

Recruitment for apprenticeship training is generally carried out through the relevant Railway zones, production units, and establishments.

Stipend and Absorption Prospects

Railway Act Apprentices receive at least the prescribed minimum stipend: ₹9,600 a month for ITI (National or State Certificate) holders since 11 September 2025.

Completing a Railway apprenticeship does not guarantee permanent employment with Indian Railways.

Eligible Course Completed Act Apprentices may receive recruitment benefits where the applicable Railway recruitment rules provide for them. However, regular employment requires the candidate to meet the requirements of the relevant recruitment process.

Employer Obligations and Compliance

Employers engaging apprentices have responsibilities from the point of registration through the completion of training.

Engagement Ratio Requirements

The applicable Apprenticeship Rules prescribe the number of apprentices an establishment needs to engage based on its workforce.

The framework provides for an engagement range of 2.5% to 15% of the workforce, depending on the establishment and applicable requirements. A specified portion of the engagement requirement also applies to fresher apprentices.

Employers should calculate the applicable requirement using the current rules for their establishment.

Stipend Payment Obligations

Employers must pay apprentices the prescribed stipend during the apprenticeship.

The stipend rates are prescribed by the Government and can vary based on the apprenticeship category and qualification. The applicable rates may be linked to the minimum wage for semi-skilled workers.

Under the National Apprenticeship Promotion Scheme (NAPS), eligible employers can receive government reimbursement towards the stipend. The reimbursement is 25% of the stipend, subject to a maximum of ₹1,500 per apprentice per month, under the applicable scheme conditions.

Registration and Reporting

Employers need to register the apprenticeship contract through the prescribed apprenticeship portal.

The apprenticeship contract must be registered through the prescribed portal within seven days. Employers must also maintain the required records and complete the applicable reporting and compliance requirements.

Non-compliance can attract penalties under Section 30 of the Apprentices Act.

Is an Apprentice a Worker under Indian Law?

No. An apprentice is treated as a trainee and not as a worker under Section 18 of the Apprentices Act.

The section also states that labor laws generally do not apply to apprentices, subject to specific exceptions provided under the Act.

These exceptions include specified provisions of:

• The Factories Act, 1948
• The Mines Act, 1952
• These Acts have since been replaced: the Factories Act and the Mines Act by the Occupational Safety, Health and Working Conditions Code, 2020, and the Employees’ Compensation Act by the Code on Social Security, 2020, both in force from 21 November 2025.
  

  Labor Law Provisions that Apply

  Although apprentices are treated as trainees rather than workers, the Act provides specific protections relating to health, safety, welfare, and compensation.

  For example, applicable safety provisions under the Factories Act and Mines Act continue to apply in the circumstances specified by the Apprentices Act. An apprentice can also be entitled to compensation for injuries sustained during training under the applicable provisions.

  PF and ESI provisions generally do not apply to Act Apprentices in the same manner as they apply to regular employees. Similarly, gratuity provisions, now in the Code on Social Security, 2020 (which replaced the Payment of Gratuity Act), do not generally apply to an apprentice covered by the Apprentices Act.

  The distinction is important for HR teams because an apprentice should be managed according to the apprenticeship framework rather than treated as a regular employee.

  Frequently Asked Questions (FAQs)

  1. What is the difference between Act Apprentice and company trainee?

  An Act Apprentice is engaged under a contract of apprenticeship governed by the Apprentices Act and applicable rules. A company trainee may be engaged under an employer’s own training arrangement and may not fall within the statutory apprenticeship framework.

  2. Can an Act Apprentice be terminated before training completion?

  Yes, but termination has to follow the applicable provisions of the Apprentices Act. Section 7 deals with the period of apprenticeship and termination of the contract in specified circumstances.

  3. Is stipend taxable for apprentices?

  The tax treatment of apprenticeship stipend depends on the applicable provisions of the Income Tax Act. Apprentices should check the tax treatment applicable to their individual circumstances rather than assume that every stipend is automatically exempt or taxable.

  4. What certificate does an Act Apprentice receive?

  An apprentice who successfully completes the required training and assessment can receive the applicable apprenticeship certificate. Eligible trade apprentices can receive the National Apprenticeship Certificate (NAC) through the prescribed certification process.

  5. Does completing a Railway Act Apprenticeship guarantee a Railway job?

  No. Completing an apprenticeship does not automatically result in permanent Railway employment. Candidates may receive recruitment benefits where the applicable Railway rules provide them, but they still need to meet the requirements of the relevant recruitment process.