As businesses and industries become more competitive, investing in the future is essential. The apprenticeship program aids the student get On-the-Job Training along with theoretical knowledge and skill certification from National Skill Development Corporation (NSDC).
Technology and automation are gradually increasing and businesses are facing difficulty in hiring skilled workforce. Apprenticeship program (NAPS) is a valuable tool for businesses to build a skilled workforce.
Apprentices have the ability to learn, develop their skills and earn skill certificate while getting on-the-job experience and classroom training, achieving a head start for their careers labeled as experienced professionals.
Industry Benefits of Employing Apprentices
Build A Pipeline Of Skilled Manpower
Apprenticeship develop a robust workforce through proactive planning and execution of on-the-job and classroom training.
Flexi Entry Or Exit
Apprentices can be engaged in business at any point and can be discontinued; (providing a one-month notice period).
Apprentice Can Work In Core Area
Earlier apprentices were not allowed to work in core area but as per the Amendments in the Apprenticeship Act 1961 they can work in the core area which benefits the industry for hiring apprentices.
Reduce Attrition
Apprentices can be hired for maximum 36 months. As Apprentices have the eagerness to learn and complete the course in which they are enrolled. The industry is at ease as the attrition ratio is much lesser than other employees/contractual labour.
Control Expenditure On The Recruitment Process
It is not mandatory for the industry to engage their apprentices as employees, but after the course completion these trainees get skilled and well-versed in their work responsibility and the industry tends to deploy the apprentices on roll as training new employees would consume time.
No Statutory Compliances/Labour Law Applicable
As per the Apprenticeship Act 1961, no statutory compliance like PF, ESIC or Bonus is applicable. As the apprentice is termed as a TRAINEE and not a WORK-MAN, no labour laws are applicable for them.
Need Base Skill Training
By investing time and effort into improving apprentice’s knowledge and capabilities, they can become valuable assets to the industry while increasing their own self-worth and confidence. Thus, impacting more efficient and effective workers capable of handling new challenges with ease.
CSR Benefit
As per the amendments, any expenses like stipend, training and service charges paid to TPA over and above 2.5% up to 15% (25% in Maharashtra & Karnataka) can be enclosed as a part of CSR.
Complying with the amendments of the Apprentices Act 1961 and rules made thereunder, organizations having 30+ employees should engage apprentices as a part of compliance. Yashaswi Group, India’s 1st leading Third Party Aggregator for implementing apprenticeship program assists organizations in developing, implementing, monitoring and evaluating the same.