S. Krishnamoorthy Started The Discussion:Friends,
This is purely hypothetical. In many ITES/BPO companies, "trainees" are inducted for a specific period. They are given theoretical and practical training during this period. They are also paid "stipend" or "training allowance" for the days of training.
No other benefits are extended to them. In companies where approved "Standing Orders" are in force, these "trainees" are not included as "employees". In the absence of any employer-employee relationship, can ESI subscription be recovered from them? If they object to the recovery can the company refrain from recovering the subscription? The Supreme Court in one of its judgement on the applicability of EPF for trainees, has very clearly given its verdict that the "trainees" are NOT employees and hence the Act would not be applicable to the trainees.
I seek the views of experts.
If you have any insight on this, or if you are looking for information on the same topic, please engage with this member to help add value to this discussion.
Disclaimer: This network and the advice provided in good faith by our members only facilitates as a direction towards the actions necessary. The advice should be validated by proper consultation with a certified professional. The network or the members providing advice cannot be held liable for any consequences, under any circumstances.