India Employer Forum

Compliance

Apprenticeship Laws Are More Employer Friendly Now

  • By: India Employer Forum
  • Date: 17 February 2021

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Due to the unpleasant rise in educational illiteracy, people have taken to apprenticeship as a way to meet their needs. Apprentices are persons who usually have to work under skilled employers for low wages. Many apprentices are maltreated and cheated in India today, while others are abused or malnourished by their employers, whom they most often than not refer to as their master. The government has passed new apprenticeship laws to help the skilling of Indian youths come without trials and suffering. The government has informed that changes would be made to the Apprenticeship Rules (1961). The government plans to improve the skilled workforce in India and make sure that it serves as a means where apprentices can be duly compensated.

One of the recent apprenticeship laws seeks to increase apprenticeship acceptance in establishments, wherein, minimum stipends had been doubled to between Rs 5,000 and Rs 9,000 per month. The new apprenticeship law also places a minimum on the number of apprentice companies can employ. With this regulation, companies are mandated to employ a minimum; thereby, cutting out the practice of hiring an insignificant number of apprentices.

To ensure that the employers are not overworked, the ministry of skill development and entrepreneurship has ensured that industries would be exempted from apprenticeship paperwork. India is in need of more skilled manpower; hence, the need for organizations to absorb more apprentices.

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Importance of apprenticeship laws

The well-being of her citizens is the ultimate concern of a government. A country cannot exist without key features such as population and ample protection. Consequently, the government of India, through the apprenticeship laws, has introduced and improved on apprenticeship for reasons beneath.

Promotion of the entire country’s GDP: Apprentices in India assist the country’s export power, which is an essential factor for its economic development. They produce goods and services on a large scale to earn a large amount of foreign exchange from export to combat the import due requirement. Hence, import substitution and export promotion ensure economic independence and societal development.

Induces backward and forward linkages: Apprenticeship in India can serve as an economic boost by the maximization of the innovation of the apprentices. The country has so many apprentices that would push individual companies to develop vastly on their apprentices to stand out in the labor market. These competitions usually bring the best out in apprentices. In the long run, it ends up leading to several connections that will help the people and India’s economy.

Inducement of the improvement of various centres: Apprentices act as catalytic agents for change, which results in a series of reactions. Once an establishment is initiated, the process of industrialisation is set in motion. This unit will create demand for various types of units required by it, and there will be so many other units that require the output of this unit. This leads to the complete development of a sector due to an increase in demand and the setting up of more units.

For a commendable standard of living in India: Improvement in the standard of living of the individuals is a feature of the country’s economic development. Apprentices contribute a great deal to the economy through the provision of employment and wages. Adopting the latest innovations in producing a wide variety of goods and services is good for the economy. As such, this enables the government to increase the minimum wages for employed apprentices, which results in the improvement of the standard of living of people in India.

Digital advancement: Apprentices are always on the lookout for feasible measures and ways to profit from ideas and innovations. Skilling of Indian youths is important if apprenticeship establishments and the country as a whole desire to be widely innovative. Since the world has gone digital, an entrepreneur’s promotion of the digital economy is paramount. With India being a leading force in the realm of tech, it could use the hands and brains of a lot of skilled youths.

Reduction of unemployment: The development of businesses would generate employment opportunities for the individuals, introduce innovative strategies, and bring in new products and services for the individuals’ welfare.

The government is working tirelessly towards the alleviation of unemployment. In various fields, there has been the introduction of advanced techniques, methods, and procedures, which have nurtured the lives of individuals. It has simultaneously reduced unemployment in the country too.

Apprenticeship establishments are economic boosters: Through their exceptional contributions of new goods and services, some white-collar workers break away from the practice. They move on to form establishments, recruit apprentices and directly sustain their financial freedom by decreasing dependence on traditional and outdated systems and technologies. This results in an enhanced quality of life, better determination, more competition, and economic freedom. 

Development of citizens: The contribution of apprenticeship towards the personal growth of the individual is for the individual’s personal development. This is a generation where the enhancement of the skills and abilities of the individual is essential. When individuals are engaged in employment opportunities, when they work with innovative techniques and methods, then their personal developments skyrockets.

On the other hand, this leads to the development of skills, proficiency, and expertise within them.  The primary factor involved in an apprenticeship in India for the Indian youth is the generation of new ideas and the move to put them into practice in an appropriate manner.

As it has been stated that entrepreneurs continuously look for innovative strategies and methods that may enhance productivity and profitability. Taking ideas, suggestions, and guidance from other professionals in a similar field has contributed towards growth and fulfillment. The skilling of Indians is paramount to the government. That is why the government has stated that youths should access the apprenticeship training portal to get more information.

References:

  • Government notifies changes in apprenticeship rules | Bloomberg | September 30, 2019
  • Changes in apprenticeship rules 2019 – what you should know | Forum content team | October 17, 2019

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