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

Mahesh Auto Pvt Ltd engages an apprentice and proposes to pay him per unit of components finished, plus an output bonus to motivate him. Under the central text of the Apprentices Act, 1961, what is the position?

This is not permitted. Section 13(2) says 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 consent nor paying the minimum stipend cures the prohibition.

  1. APermitted if the stipend is not below the minimum rate
  2. BPermitted only with the apprentice's written consent
  3. CNot permitted, as an apprentice cannot be paid on piece-work basis or be required to join any output bonus or incentive schemeCorrect
  4. DPermitted for the first year only

Explanation

Section 13(2) bars payment of an apprentice on piece-work and bars requiring participation in output bonus or other incentive schemes. Consent or a minimum stipend does not remove this bar.

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