Department for Promotion of Industry and Internal Trade (DPIIT) vide its notification number G.S.R. 127(E) dated 19th February 2019 has increased the maximum turnover for a firm to be considered as a start-up to Rs. 100 crore from earlier criteria of maximum turnover of Rs. 25 crore.
The Apprentices Act, 1961 makes it obligatory for employers to engage apprentices in “designated trades” and “optional trades” for all employers who have a workforce of 40 employees or above (sum of total regular and contract employees), across the manufacturing, services, trading sectors, etc.
For establishments having workforce of 6 to 40 employees, engagement of apprentices is optional. However, establishments with 5 employees or less are not permitted to engage apprentices. The Apprentices Act, 1961 does have any provision for “Start-ups”. As per sub rule (3) of Rule 7-B the Apprenticeship Rules, 1992, each establishment shall engage apprentices in a band of 2.5% to 10% of the total strength of the establishment including contractual staff.
The Government has no plan to increase or reduce the percentage of apprenticeship in establishments, at present.
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