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

Kiran Engineering in Pune wishes to pay its apprentice Sunil on a piece-rate basis, linking his earnings to the number of components finished, and to enrol him in the plant's output bonus scheme. Under the central Apprentices Act, 1961, what is the position?

It is not permitted. The Act says an apprentice cannot be paid on piece work and cannot be required to take part in any output bonus or other incentive scheme. A contract clause or the apprentice's consent does not override this restriction.

  1. APermitted if the contract of apprenticeship states it
  2. BPermitted only for apprentices in the final year of training
  3. CNot permitted, as an apprentice cannot be paid on piece work or be required to take part in an output bonus or incentive schemeCorrect
  4. DPermitted if the apprentice gives written consent

Explanation

Section 13(2) provides that an apprentice shall not be paid on the basis of piece work nor be required to take part in any output bonus or other incentive scheme. Neither a contract term nor consent changes this, so the option allowing it by contract is wrong.

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