Apex Court rules trainees are not employees
Apex Court rules trainees are not employees
By HRIOL News Service
NEW DELHI, Feb 23, 2006 : THE
Karnataka High Court held that persons who were selected as trainees were not
covered by Employees Provident Fund & Misc. Provisions Act, 1952 as they cannot
be called as "employees" as defined under Section 2(f) of the Act. The PF commissioner
is in appeal before the Supreme Court.
The respondent had selected 45 persons as apprentices. It was clearly indicated
in the order that the training in the factory does not entitle any trainee to
claim right of appointment after completion of training period. It was also
stipulated that if any trainee leaves the factory within one year, he was required
to refund the amount received by him as stipend. The PF commissioner held that
they were employees within the meaning of the Act.
The Supreme Court held that , the trainees were paid stipend during the period
of training. They had no right to employment, nor any obligation to accept any
employment, if offered by the employer. Therefore, the trainees were 'apprentices'
engaged under the 'Standing Orders' of the establishment. That being the position,
it cannot be said that the concerned 45 trainees were employee in terms of Section
2(f) of the Act. In other words, an apprentice engaged under the Apprentices
Act or under the Standing Orders is excluded from the definition of an 'employee'
as per Section 2(f) of the Act.
So the appeal fails.
(See
2006-HRIOL-03-SC-PF
in 'Laws 4 U')
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