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Apprentices Act

Section:7, Rule 8 :Termination of Apprentices Contract

Obligation : To obtain permission in writing from the Apprenticeship Adviser prior to terminating the contract of an apprentice before it expires and pay Compensation to the apprentice if necessary

Type:Preventive Compliance Frequency: Monthly

Action to be taken:
Where it is necessary to terminate
the contract of apprenticeship before it expires, make an application in writing to the Apprenticeship Adviser and obtain his written permission. A copy of the application should be sent to the other party to the contract by post. If the reason of termination is due to the failure of the employer to carry out his obligations, pay Compensation equal to 3 months Stipend to the apprentice as per Rule 8.

Audit Requirement:
Have no Apprenticeship Contracts been terminated without the permission of the Apprenticeship Adviser ?

Supporting Documents:
Details of Termination of all Apprentices Contracts and copies of the Order from the Apprenticeship Adviser.

Related Triggers:
Apprentices - Termination of Apprentices Contract
Closure Of An Undertaking/Establishment

Related Keywords:
Appointment Letter/Contract of Employment
Apprentices
Dismissal, Discharge, Termination
Employee Leaving The Company

Related Sections:
Apprentices Act, 1961
Chapter:Chapter II: Apprentices and Their Training| 7:Termination of apprenticeship contract.:
(1) The contract of apprenticeship shall terminate on the expiry of the period of apprenticeship training.

(2) Either party to a contract of apprenticeship may make an application to the Apprenticeship Adviser for the termination of the contract, and when such application is made, shall send by post a copy thereof to the other party to the contract.

(3) After considering the contents of the application and the objections, if any, filed by the other party, the Apprenticeship Adviser may, by order in writing, terminate the contract if he is satisfied that the parties to the contract or any of them have or has failed to carry out the terms and conditions of the contract and that it is desirable in the interests of the parties or any of them to terminate the same:
Provided that where a contract is terminated-
(a) for failure on the part of the employer to carry out the terms and conditions of the contract, the employer shall pay to the apprentice such compensation as may be prescribed;
(b) for such failure on the part of the apprentice, the apprentice or his guardian shall refund to the employer as cost of training such amount as may be determined by the Apprenticeship Adviser.

(4) Notwithstanding anything contained in any other provision of this Act, where a contract of apprenticeship has been terminated by the Apprenticeship Adviser for the expiry of the period of apprenticeship training and a new contract of apprenticeship is being entered into with a new employer, the Apprenticeship Adviser may, if he is satisfied that the contract of apprenticeship
with the previous employer could not be completed because of any lapse on the part of the previous employer, permit the period of apprenticeship training already undergone by the apprentice with his previous employer to be included in the period of apprenticeship training to be undertaken with the new employer. Apprenticeship Rules, 1992
8:Compensation for termination of apprenticeship:
Where the contract of apprenticeship is terminated through failure on the part of any employer in carrying out the terms and conditions thereof, such employer shall be liable to pay the apprentice compensation of an amount equivalent to his three months last drawn stipend.