NAPS

(National Apprenticeship Promotion Scheme)

NAPS-INTRODUCTION

(National Apprenticeship Promotion Scheme)

National Apprenticeship Promotion Scheme (NAPS) launched in August 2016 with extended financial benefits by the Govt. of India for apprenticeship (Sharing of 25% of the prescribed stipend, subject to a maximum of INR 1,500 per month, per apprentice to the industry).

To strengthen the skill development mission, the Ministry of Skills Development and Entrepreneurship launched the National Apprenticeship Promotion Scheme (NAPS).  The National Policy for Skill Development Emphasizes apprenticeship as a key strategy for developing a skilled workforce.

Apprenticeship – Opportunities

(Reason for NAPS implementation) through Third Party Apprentice Aggregator)

(Approved by Ministry of Skill Development & Entrepreneurship)

  • India is a young nation with high population, but not industry ready, hence Low employability.
  • Demand for industry ready skilled manpower.
  • Bridge between Supply & Demand.
  • Reforms to make it industry friendly.
  • Intent to regime from regulatory to self-regulatory.
  • Financial support.

BENEFITS TO EMPLOYER

  • Financial support from the Government through Apprenticeship.
  • Sharing of 25% of the prescribed stipend, subject to a maximum of INR 1,500 per month per apprentice.
  • Industry can design and run apprenticeships in customized courses.
  • Increases availability of industry ready skilled manpower well versed with culture of the company.
  • Productivity in optimized permanent manpower.
  • Legal hassle free system for manpower engagement.
  • Relief in Statutory compliances & competitive edge on labour cost.
  • 2.5%-15% of total workforce (including contractual) can be apprentices.
  • Lowers long term cost and relaxes Statutory and regulatory hassles.
  • Candidates 8th pass and above can join as an apprentice for minimum 1 year.
  • Flexible workforce to deliver production targets.
  • Social Impact Put apprentice skills into practice helping them to gain confidence in a working environment leading to higher productivity.
  • Nation building through skilling.

Apprenticeship Potential in India remains Untapped

THE LAW

Definition of worker under the Apprenticeship Act (Para 18 of Apprentices Act 1961)

Apprentices are trainees and not workers

Every Apprentice undergoing apprenticeship training in designated/optional trade in an establishment shall be a trainee and not a worker

Establishments falling under Apprenticeship Mandate

Now 15% of the total workforce can be deployed under the NAPS program.

Trainee Timings for Apprentices

Night Shift & Over Time for Apprentices under both Optional/Designated Trade.

Weekly hours of work dealt under Rule 7A (8) read with Rule 12(3) of the Apprenticeship Rules 2015.

For Graduates or class 10th/12th class pass out /Diploma Holders – the working hours will be the same as normal hours of work in the department in the establishment which they work.

Hence for a BPO kind of set up this covers night shifts.

The restriction on night shifts under rule 12(2) is essentially for boys/girls between 14 & 18 years of age- guidelines under issue accordingly.

Over Time allowed under section 15(2) of Act with approval of apprenticeship advisors – the restrictions are essentially for boys/girls between 14 & 18 years of age- guidelines under issue accordingly.

IMPLEMENTING GOVERNMENT AGENCIES

NSDC

Implementing Agency in Apprenticeship Programme for Optional Trades
Managing the portal

DGT / RDAT

Implementing Agency in Apprenticeship Programme for Designated Trades

ROLE OF TPAs

Integral role as a Third Party Aggregator (TPA)
Identify courses needed by Industry under the Apprenticeship programme
Help Industry to match demand/supply in coordination with the SSCs

Roles & Responsibilities of Sector Skill Councils

Advocacy of Apprenticeship in respective sectors
Capacity building and supporting industry in curricula development
CEOs notified as Joint Apprenticeship Advisors (JAAs) for monitoring apprenticeship in Optional Trades

New Structure for Apprenticeship Implementation (where Central Govt. is Appropriate Authority)

BOOM to Optional Trades

Pathways for Youth to Become Industry Ready

The Case Study

Apprenticeship Benefits to Airbus (UK)

Airbus runs a successful apprenticeship program; which feeds in significantly to their management team.

  • >30 years, Airbus-UK has trained over 4,000 apprentices.
  • Initially spending time on coaching, guiding and tutoring the apprentices paid off later big-time.
  • Apprentices helped the business to become more productive and competitive.
  • Apprenticeship program focused on skills strategy, talent retention and development.
  • Airbus took 620 employees on early career programs of which over 400 are apprentices in training.
  • 70% of senior managers at Airbus started their career as apprentices.

Apprenticeship Programme ensures that Airbus, the world’s leading aircraft manufacturer, hires and retains the world’s best skilled workforce.

Apprentices become a steady stream of loyal employees and they help improve the productivity of the business.

Strong Business Case for Apprenticeship!

  • High ROI with a short payback period.
  • Candidates start contributing productively after a couple of months of training.
  • Apprentices are not employees, no obligation to hire them.
  • Knows company culture when you hire them subsequently as an employee.
  • Less attrition.
  • Reduces Cost of recruitment & induction.
  • High level of dedication and loyalty among apprentices.
  • For an apprentice –gets an exposure into shop floor training-
  • Earn while you learn concept

A Win-Win Opportunity!

Utilization of CSR Funds on Apprenticeship Training

As per circular from Ministry of Corporate Affairs dated 12th Feb, 2016 – Industries / Establishments are permitted to utilize their Corporate Social Responsibility (CSR) funds for Apprenticeship Training which include expenditure on Basic Training and Stipend payable to apprentices, under Apprentices Act, 1961 (amended in 2014) as under

Industries / Establishments having employee strength above 30 – it is obligatory for them to engage apprentices minimum 2.5% and maximum 15%, hence any expenditure on Apprenticeship Training over & above of 2.5% i.e. minimum mandate as per Apprentices Act, can be booked under CSR funding

For Industries / Establishments having employee strength between 4 – 29, it is not obligatory to engage apprentices, however, they are permitted to engage apprentices minimum 2.5% and maximum 15%, hence any expenditure on Apprenticeship Training can be booked under CSR funding

Industries / Establishments having employee strength of 3 or less – they are not permitted to engage apprentices, hence no expenditure on Apprenticeship Training can be booked under CSR funding

NB:- As per the Companies Act, 2013, a company with a net worth of Rs 500 crore or more, or a turnover of Rs 1,000 crore or more, or a net profit of Rs 5 crore or more in a fiscal year is required to spend 2 percent of its average net profit in the preceding three years tow­ards CSR.

Document Checklist for Registration under NAPS

Link to Online Portal : http://www.apprenticeshipindia.org