Setting Up of Business, Industrial and Labour Laws · The Apprentices Act, 1961

Obligations of Employers and Apprentices under the Apprentices Act, 1961

Updated 11 October 2026 · Fact-checked

Under the Apprentices Act, 1961, the employer must train the apprentice properly (section 11), engage the prescribed number of apprentices (section 8) and pay at least the stipend in the contract (section 13). The apprentice must learn diligently, attend classes and obey lawful orders (section 12).

Understand Obligations of Employers and Apprentices

An apprentice is a trainee, not a regular worker. The Act creates a training relationship, set out in a contract of apprenticeship. Because the aim is training, the Act places duties on both sides.

The employer's duties are in section 11. The employer must give training in the trade as per the Act and rules. If the employer is not qualified in the trade, a person with the prescribed qualifications must be placed in charge of the training. The employer must also provide adequate instructional staff, with prescribed qualifications, for practical and theoretical training and facilities for the trade test. Finally, the employer must carry out its own obligations under the contract of apprenticeship.

The apprentice's duties are in section 12. A trade apprentice must learn the trade conscientiously and diligently and try to become a skilled craftsman before the training period ends. He must attend practical and instructional classes regularly, carry out all lawful orders of the employer and superiors in the establishment, and carry out his obligations under the contract. Graduate, technician and technician (vocational) apprentices have similar duties, and they must also maintain such records of their work as may be prescribed.

Two more sections complete the picture. Section 8 deals with how many apprentices an employer engages. The Central Government prescribes the number for designated and optional trades, and several employers may join together, directly or through an agency approved by the Apprenticeship Adviser, to provide training. Section 13 deals with stipend: the employer pays a stipend not less than the prescribed minimum rate, or the rate paid on 1 January 1970 to that category, whichever is higher, as specified in the contract. An apprentice cannot be paid on piece work or made to join an output bonus or incentive scheme.

Note that some States have amended these sections. Maharashtra and Rajasthan have their own rules on numbers and stipend. Answer on the central text unless the question names a State.

Key rules to remember

Employer's obligations (section 11): Train in the trade + qualified person in charge + adequate instructional staff and trade-test facilities + honour the contract; Clause (bb) on instructional staff was inserted in 1997. Remember four duties: (a), (b), (bb), (c).
Trade apprentice's obligations (section 12(1)): Learn diligently + attend classes regularly + obey lawful orders + honour the contract; Orders must be lawful. The apprentice need not obey unlawful orders.
Graduate/technician apprentice (section 12(2)): Same four duties + maintain prescribed records of work; The record-keeping duty is the extra point in clause (d).
Number of apprentices (section 8): Central Government prescribes the number for designated and optional trades; employers may pool training; Pooling is either by themselves or through an agency approved by the Apprenticeship Adviser, per Central Government guidelines.
Stipend (section 13(1)): Stipend ≥ higher of (prescribed minimum rate, rate paid on 1 January 1970 to that category); The stipend is as specified in the contract, paid at prescribed intervals and conditions.
Stipend restriction (section 13(2)): No piece-rate payment; no output bonus or incentive scheme; Stipend is for training, not for output.

How to solve Obligations of Employers and Apprentices questions

Most questions ask you to list duties, test a fact situation, or explain stipend and numbers. Use one structure for all.

1Identify whose obligation is tested: employer (section 11), apprentice (section 12), number (section 8) or stipend (section 13).
2State the provision in plain words and cite the section.
3Check the apprentice's category: trade apprentice or graduate/technician/technician (vocational). The record-keeping duty applies only to the latter.
4Apply each limb of the section to the facts one by one. For stipend, check the rate and any piece-work or incentive element.
5Check whether a State amendment is mentioned in the question. If not, use the central text.
6Close with a clear conclusion: breach or no breach, and who is in default.

Quickest way: Four-and-four recall

When to use it: Use for short-note or list questions where time is tight.

Write the section number, then the heading.
Employer: Train, Qualified in-charge, Staff and trade-test facilities, Contract.
Apprentice: Learn, Attend, Obey lawful orders, Contract.
Add the extras: records for graduate and technician apprentices; stipend not below the higher rate; no piece work.
Give a one-line conclusion tied to the facts.

Common mistakes in Obligations of Employers and Apprentices

Treating section 11 as having only three duties.
Clause (bb) is inserted between (b) and (c) and is easy to miss.
Fix: Remember four duties: training, qualified person in charge, adequate instructional staff and trade-test facilities, and the contract.
Saying the apprentice must obey all orders.
Students shorten the rule.
Fix: Write 'all lawful orders'. Section 12 uses that word.
Allowing stipend on piece-rate or an incentive scheme.
Students treat the apprentice like an employee.
Fix: Quote section 13(2): no piece work, no output bonus or incentive scheme.
Stating the stipend as just the minimum wage.
Mixing with the Rajasthan amendment or wage laws.
Fix: Central rule: not less than the higher of the prescribed minimum rate and the rate paid on 1 January 1970 to that category.
Saying the employer fixes the number of apprentices freely.
Section 8 is skipped.
Fix: The Central Government prescribes the number for designated and optional trades; employers may pool training.
Missing the extra duty of graduate and technician apprentices.
Students read only section 12(1).
Fix: Add that section 12(2) requires maintaining prescribed records of work.

Worked examples

Example 1

Sunrise Engineering Ltd., Pune, engages trade apprentices but has no one qualified in the trade to supervise them and provides no instructors. Advise whether it has complied with the Apprentices Act, 1961.

Show the solution

Provision: section 11 lists the employer's obligations.
Under section 11(b), if the employer is not qualified in the trade, a person with the prescribed qualifications must be placed in charge of training.
Under section 11(bb), the employer must provide adequate instructional staff with prescribed qualifications for practical and theoretical training and facilities for trade test.
Facts: Sunrise has neither a qualified person in charge nor instructors.

Answer: Sunrise has not complied. It breaches section 11(b) and section 11(bb) and so fails its obligation to train the apprentices as the Act requires.

Example 2

Ravi, a trade apprentice at Kaveri Textiles Ltd., is paid ₹8,000 per month under a contract. The company now says he will be paid on piece rate and given an output bonus. Ravi also skips practical classes. Discuss the position of both parties.

Show the solution

Employer: section 13(1) requires a stipend as specified in the contract, not below the prescribed minimum rate or the 1 January 1970 rate, whichever is higher.
Section 13(2) says an apprentice cannot be paid on piece work or required to join an output bonus or incentive scheme.
So the company's proposal is not allowed.
Apprentice: section 12(1)(b) requires him to attend practical and instructional classes regularly. Skipping them breaches his obligation.
Section 12(1)(a) also requires him to learn diligently.

Answer: Kaveri Textiles cannot shift Ravi to piece-rate pay or an output bonus, because of section 13(2). Ravi is in breach of section 12(1) by not attending practical classes regularly. Each party must perform its own obligations.

Exam tips

Cite section numbers 8, 11, 12 and 13. ICSI answers reward the provision first.
In list questions, write each obligation as a separate bullet so the examiner can count them.
Use the phrase 'lawful orders' and 'piece work' exactly as in the Act.
Mention State amendments briefly only as a note, after the central rule.
In case questions, end with a clear verdict naming who is in breach.

Practice questions from The Apprentices Act, 1961

Obligations of Employers and Apprentices: frequently asked questions

What are the obligations of employers under the Apprentices Act, 1961?

Section 11 requires the employer to train the apprentice as per the Act and rules. It must place a qualified person in charge if it is not qualified itself, and provide adequate instructional staff and trade-test facilities. It must also perform its obligations under the contract.

What are the duties of an apprentice under section 12?

A trade apprentice must learn diligently, attend practical and instructional classes regularly, obey lawful orders of the employer and superiors, and carry out the contract. Graduate and technician apprentices have similar duties and must also keep prescribed records of their work.

How is the stipend decided under section 13?

The stipend is specified in the contract of apprenticeship. It must be not less than the prescribed minimum rate or the rate paid by the employer on 1 January 1970 to that category, whichever is higher. Piece-work payment and incentive schemes are not allowed.

Who decides the number of apprentices an employer must engage?

Under section 8, the Central Government prescribes the number for designated and optional trades. Employers may also join together, directly or through an agency approved by the Apprenticeship Adviser, to give training. Some States, such as Maharashtra and Rajasthan, have their own amendments.