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Clarification of status of student-trainees of educational / technical institutes recognized by Central / State Government - The Employees Provident Funds and Miscellaneous Provisions Act, 1952

Clarification of status of student-trainees of educational/ technical institutes recognized by Central / State Government or any authority constituted by them, vis-a-vis the Employees Provident Funds & Miscellaneous Provisions Act, it is made clear that employer employee relationship does not exist between the industry and student-trainee, who is on industrial on the job training as an integral component of a recognized course of an educational! technical institute recognized by the Central! State Government or any other authority constituted by the Central!State Government. Therefore, the payment of stipend, if any, provided by the industry to such student trainees do not attract the provisions of the Employee Provident Funds & Miscellaneous Provisions Act, 1952. However for the students getting placement in companies and appointed as employees of establishment, Employee Provident Funds & Miscellaneous Provisions Act, 1952 will be applicable on such employees even during on the job training/induction/other training taken after becoming employee.

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