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

Under the Apprentices Act, 1961 (central provisions), an employer, Lotus Foods Ltd, fails to carry out the terms of a contract and the Apprenticeship Adviser terminates it on the apprentice's application. What follows?

The employer must pay the apprentice such compensation as may be prescribed. Under the proviso to Section 7(3), refund of training cost arises only when termination is for the apprentice's failure, not the employer's.

  1. AThe apprentice or guardian must refund the cost of training to the employer
  2. BThe employer must pay the apprentice such compensation as may be prescribedCorrect
  3. CNo payment arises, as termination ends all obligations
  4. DThe employer pays a penalty fixed by the Apprenticeship Adviser to the Government

Explanation

The proviso to Section 7(3) says that where termination is for the employer's failure to carry out the contract terms, the employer shall pay the apprentice such compensation as may be prescribed. Refund of training cost applies only where the failure is the apprentice's.

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