Understanding the Concept of Apprenticeship under the EPF Scheme and Apprentices Act Concept of Apprentice According to Para 2(f) (iv) of the Employees' Provident Fund Scheme, an apprentice means a person who, according to the certified standing orders applicable to the factory or establishment, is an apprentice, or who is declared to be an apprentice by the authority specified in this behalf by the Appropriate Government. Therefore, in the absence of certified standing orders, no person can be recognized as an apprentice, unless the competent authority notified for this purpose by the appropriate Government declares that person as an apprentice. a. Any person engaged in an establishment as an apprentice in accordance with Apprentices Act, 1961 or under standing orders of the establishment are to be treated as “excluded employees” as per Para 2(f)(iv) of the EPF Scheme 1952. b. Whereas there may be another type of ‘apprentices’ who according to the certified standing orders of the factory/establishment are declared as such but are the persons appointed by the employer to be trained normally for eventual appointment as regular employee on completion of the stipulated apprenticeship period. These persons are though "employees" of the establishment as they are engaged in or in connection with the work of the establishment but are "excluded" for purpose of membership under MANUAL FOR INSPECTOR cum FACILITATOR 66 the Act so long as they continue to be "apprentice". They should be made a member of the Fund immediately upon ceasing to be such apprentice. c. An apprentice undergoes training in a designated trade under the Apprentices Act, 1961 or under standing orders of the establishment. It is also to be examined that the apprentice is engaged by the establishment for the designated trade only and not for other work/trades. d. Further, number of apprentices engaged should be within the limit (percentage of total employment) as prescribed by relevant provisions under Apprentices Act, 1961 and The Apprenticeship Rules 1992. e. The Apprenticeship Rules 1992 (Rule 7-B) provides for the number of apprentices to be engaged by the establishments. Rule 7-B (l) of the Apprenticeship Rules mentions that the employers having four or more workers shall only be eligible to engage apprentices and engagement of apprentices by establishment having thirty or more number of workers shall be obligatory. Further, the Rule 7-B (3) of the Rules mentions that within a financial year each establishment shall engage apprentices in a band of 2.5 percent to l5 percent of the total strength of the establishment including contractual staff.