As organizations continue to expand their talent pipelines through internships, traineeships, and apprenticeship programs, it becomes critical to understand the legal and compliance expectations associated with each category—especially in a state like Maharashtra with clearly defined labour frameworks.
This guide simplifies the distinctions between trainees, apprentices, interns, statutory benefit applicability, record-keeping requirements, and the process of creating legally valid Standing Orders for your establishment.
1. Stipend Rules for Interns, Trainees & Apprentices in Maharashtra
Interns / Trainees (Non-Apprentices Act)
In India, the terms intern and trainee are used widely but are not uniformly defined in labour law. This means:
- There is no fixed government-prescribed stipend for interns or trainees in Maharashtra.
- Employers may determine their own stipend amounts, as long as they do not violate minimum wage norms when the intern/trainee performs work similar to regular employees.
- If the role mirrors productive work, authorities may treat the intern/trainee as an “employee,” making wage-based laws applicable.
Intern stipends are therefore typically governed by company policy, industry standards, and risk of misclassification.
Apprentices under the Apprentices Act, 1961
For apprentices formally engaged through a registered contract, stipend rules are clearly structured:
- 1st Year: 70% of semi-skilled minimum wages
- 2nd Year: 80% of semi-skilled minimum wages
- 3rd Year: 90% of semi-skilled minimum wages
- Shorter daily training (4 hours): 50% of the above rates
These percentages are calculated based on Maharashtra’s minimum wages for semi-skilled labour in the relevant scheduled employment category.
This creates consistency in training compensation and ensures apprentices receive a defined financial benefit during their learning period.
2. Trainee vs Apprentice: What’s the Difference?
Understanding these definitions is essential for proper compliance:
Apprentice
- Governed by the Apprentices Act, 1961
- Must have a registered apprenticeship contract
- Training content, duration, and stipend are standardized
- Designed for structured skill development in designated trades
Trainee / Intern
- Not governed by a single central labour law
- Used for students, freshers, or short-term learning programs
- May or may not be connected to an academic curriculum
- Legal treatment depends on nature of work and control exercised
In simple terms:
Apprentice = legally defined training role
Trainee/Intern = company-defined developmental role
3. Do Interns, Trainees & Apprentices Get Statutory Benefits?
Whether statutory benefits apply depends entirely on how the individual is classified and the nature of their engagement.
Apprentices under the Apprentices Act
- EPF: Not applicable
- ESIC: Not applicable
- Bonus: Not applicable
- Leave: Organization-defined; basic health and safety rules apply
- Professional Tax: May vary based on state practice and stipend amount
Interns / Trainees (Company-defined)
If they are treated like employees or perform productive work:
- EPF: Likely applicable if wage criteria are met
- ESIC: Applicability depends on wage ceiling and job nature
- Bonus: May apply if the role qualifies as “employee”
- Leave: Governed by Shops & Establishments or Factories Act if treated as workers
- Professional Tax: Applies based on monthly earnings and local rules
The key factor is actual duties, not job title.
4. Returns & Records Employers Must Maintain
Depending on classification, the following may be required:
For Apprentices
- Stipend registers
- Attendance and progress records
- Periodic returns to apprenticeship authorities
- Registered apprenticeship contracts
For Interns/Trainees
- Basic employment records
- Attendance, stipend/wage records
- PF/ESIC/PT returns where applicable
- Records as per Shops & Establishments / Factories Act
Clear documentation protects employers from disputes and ensures regulatory compliance.
5. Standing Orders: What They Are & How They Become Legally Valid
Standing Orders define the service conditions for employees in industrial establishments. In Maharashtra, organizations with the required workforce size must either:
- Adopt Model Standing Orders (applicable by default), or
- Obtain Certified Standing Orders tailored to their organization.
How Standing Orders Are Formulated
- Drafting
The employer prepares Standing Orders covering employee classification, conduct rules, leave, discipline, termination, etc. - Submission
The draft is submitted to the designated Certifying Officer (Labour Commissioner or appointed authority). - Employee or Union Review
The draft is shared with employees or their unions for objections or suggestions. - Hearing & Certification
The Certifying Officer finalizes the Standing Orders and issues the certified document. - Legal Effect
Certified Standing Orders become legally binding and must be displayed and followed strictly.
They govern all terms of employment and override inconsistent company policies.
6. Practical Guidance for Employers
To stay compliant and avoid misclassification risks:
- Clearly differentiate apprentices, trainees, and interns in contracts and policies.
- Align apprentice stipends strictly to Maharashtra’s statutory formula.
- Define intern/trainee stipends based on learning objectives and avoid assigning full-fledged employee roles.
- Assess statutory benefit applicability role-wise, not title-wise.
- Ensure Standing Orders reflect your employee categories and are properly certified.
Conclusion
Interns, trainees, and apprentices play a significant role in talent development, but each category carries different legal implications. Understanding stipend structures, statutory benefit applicability, and the formation of valid Standing Orders helps organizations build compliant, future-ready training programs while protecting both learners and the employer.