Avinash Kumar Sharma (Sr. Manager HR) 09 October 2011

Status of trainees

Dear All,

My organisation used to hire freshers having professional degrees as Trainees, enroll them on regular roll. They don't deduct their PF and only pay lump sum amount as stipend. Some of them are confirmed after one year and some after two years. Is this a legal process.

Thanks & Regards,

Avinash Kumar Sharma

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5 Replies

adv. rajeev ( rajoo ) (practicing advocate) 09 October 2011

There is no wrong in it.

Avinash Kumar Sharma (Sr. Manager HR) 09 October 2011

Sir,

Can you tell me the provisions under which such employees are employed.

Thanks & Regards,

Avinash Kumar Sharma

Nandagopal G (Senior Manager - Human Resources)) 10 October 2011

Dear Avinash,

1. If the trainee is drawing more than Rs.6500/- p.m, then he is a Excluded Employee under EPF Act. Therefore no need to contribute.

2. If the Organisation has Certified Standing Order and trainees are defined under CSO, then no need to contribute PF.

Thanks & Best Regards

G.Nandagopal

Sudhir Kumar, Advocate (Advocate) 18 November 2011

Trainee is not employee. Even if he draws any amount. No PF liability is there. This practice of your company is perfect as per Apprentice Act. Even some Govt deptts are also following this.