Employer is not liable to pay contribution for trainee
sachin agarwal
(Querist) 05 February 2017
This query is : Resolved
When a trainee is imparted for the purpose of training only for upgrading his skill and not to do any work for the gains of the employer and by the employer any amount paid to him attracting him to attend coaching classes cannot be treated as wages for the purpose of provident fund contribution under the definition's of the act, 1952 and an amount paid to a trainee is incentive and not wages for the purpose of PF contribution and if the purpose of that amount to pay to the trainee is only to attract the trainee for upgrading his skill.
In the absence of payment of wages to a person employed by an employer, the relationship of an employer- employee would not come into existence for the purpose of provident fund contribution.
It is clear that only when an amount is paid to an employee and same is qualified as wages under section 2(4) of the act, 1952 would attract the PF contribution and not otherwise.
In a one hand the labour laws, shall not apply to any apprenticed and in other hand, it trainee undergoing apprentice under the apprentice act, 1961 or under the standing orders of such establishment shall be a trainee and not a worker to be covered under the act, 1952. Although it is very clear under the law that as per section 2(f) of the act, 1952 that any person engaged as an apprentice, or trainee not being an apprentice under the apprentice act, 1961 or under the standing order of the establishment, is an employee to be covered under the act, 1952 for the contribution of provident fund.
P. Venu
(Expert) 06 February 2017
What is your query?
Guest
(Expert) 06 February 2017
Thanks for the information posted by you, as there seems no query by you on any specific problem of an apprentice trainee with stipend or an employee trainee/ worker with salary/ wages.
Guest
(Expert) 07 February 2017
Usha ji,
Thanks for agreeing with me.
