National Apprenticeship Training Scheme (NATS)

Overview:
• National Apprenticeship Training Scheme is one of the flagship programmes
of Government of India for Skilling Indian Youth in Trade disciplines. The
National Apprenticeship Training Scheme under the provisions of the
Apprentices Act, 1961 amended in 1973; offers Graduate, Diploma students
and Vocational certificate holders; a practical, hands-on On-the-Job-Training
(OJT) based skilling opportunities with duration up to 1 year.
• The National Apprenticeship Training Scheme (NATS) is a one-year program
designed to equip technically qualified youth with practical knowledge and
skills required in their field of work.
• Apprentice hiring under NATS is a mandatory compliance requirement.
Key Highlights:
• Quota of Apprentices: Employers can engage apprentices within following
band width 2.5% to 10% of total manpower strength. Quota of additional 5%
allowed on approval basis.
• Age: Age should be more than 14 years and maximum age allowed is 35 years.
• Out of total stipend amount paid to apprentice, 50% (up to ₹4,500 per month
for degree apprentices and ₹4,000 per month for diploma apprentices) is
reimbursed by the Government via Direct Benefit Transfer (DBT) to
employee’s account as financial assistance to the industries. The DBT amount
is calculated based on the present days of the employee.
• The scheme provides a one-year lead time to observe the apprentices'
performance before considering regular employment.
• No obligation to provide permanent employment to apprentices.
• Eligible candidates for NATS include diploma and graduate (engineering and
non-engineering) holders.
• NATS reimbursements are received on a monthly basis.
• Under NATS, Labour laws like Provident Fund (PF) and Employees' State
Insurance (ESIC), Professional Tax (PT) benefits are optional for apprentice

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 employees. Companies have the discretion to offer either PF, ESIC, or both to
their apprentice employees.
• After 1st year, NATS training period can be extended for 2 years further. In this
case Government DBT is not applicable for extended period, however labour
law exemption continuous.
• Monthly trainings conducted under NATS are crucial for employee skill
development.
• Apprentices are issued a Certificate of Proficiency by the Government of India
upon completing the training period and passing an online assessment
conducted by the Ministry of Education.
• Stipend paid to apprentice candidates is covered under the CSR Act (if
applicable), reducing CSR expenditure.
Process: The following processes are involved in implementing apprenticeship
• Establishment Registration: Register your organisation on the government
portal (one-time process).
• Candidate Registration: Register apprentices upon joining the organisation
(ongoing process). A contract can be generated within one month of the date of
joining.
• Termination Process: Terminate the contract in case an employee leaves the
organisation (ongoing process). Timely termination is crucial to ensure that the
available quota is not exceeded.
• Monthly Training: Provide monthly training sessions to apprentices as part of
their skill development program.
• Salary Proof Submission for DBT: Submit salary proof for Direct Benefit
Transfer (DBT) to ensure seamless fund disbursement.
Journey of an Apprentice Candidate:
Apprenticeship Contract:
• For new employees joining the apprenticeship program, the apprenticeship
contract starts from the date of joining.
• The apprenticeship contract between the apprentice employee and the company
is valid for 1 year.
• If an employee drops out anytime within the contract period, a termination
process is initiated by the agency.

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Joining and Completion:
Upon successful completion of the 1-year apprenticeship program, the company has
three options to continue with the apprentice.
Options for Apprentices upon Completion:
1. Absorption: The company can absorb the apprentice into a company role.
2. Extension: NATS training can be extended for further 2 years.
3. Contract Transfer: The company can transfer the apprentice to a contract role.
4. Relieve: The company can relieve the apprentice from their job.
Other Details:
• Only candidates who have completed their education within the last 5 years
from the date of joining are eligible for enrolment under NATS.
• Certification Process after Apprenticeship Completion: After successfully
completing 1 year under apprenticeship, employees must undergo an
assessment conducted by the Ministry of Skill Development and
Entrepreneurship (MSDE) to receive a certification.
• Assessment Fee: The assessment fee, ranging from ₹1000 to ₹1500, can be
borne by either the employee or the employer.
• Conduct & Discipline: The conduct and behaviour of apprentices can be
governed by applying rules and regulations used for regular employees.
Stipend of an apprentice can be stopped for unsatisfactory performance.
Apprenticeship training can be terminated in serious cases of misbehaviour,
habitual absenteeism etc. For effective control over behaviour and performance
of apprentices it is possible to amend contract of apprenticeship.
• Apprentices are abiding by the all other terms & conditions by the employer as
per the company policy.
• Leaves & Holidays: Apprentices are entitled to all leaves and holidays as
applicable to other employees or as per company’s policy.
• In case ESIC exemption is opted, for apprentice candidate Workman
Compensation (WC) or Group Mediclaim (GMC) policy is mandatory. If an
apprentice meets with an accident during apprenticeship training, an employer
is liable to pay compensation according to workmen's compensation act or as
per mediclaim/ accidental policy.
Stipend Transfer and DBT Process:
• Employer Responsibility: Stipend transfers must be made directly from the
employer to the employee's bank account.

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 • Post-Transfer Requirements: After transferring the stipend, employer should
submit the stipend payment confirmation to the agency.
• DBT Processing: Upon receiving the required documents, the agency will
initiate the DBT process. The government typically releases DBT funds within
7-10 working days of completing the necessary procedures.
Employers have two options for releasing stipend amounts to employees:
Option 1: Full Stipend Release
• Employer releases the full stipend amount to the employee.
• The government's share is received by the employee as an additional amount.
• The additional amount is deducted from the employee's salary in the next
payroll cycle.
• Agency maintains all stipend details on monthly basis and will be shared to
company on time-to-time basis.
This option ensures higher employee satisfaction, as they receive the full payment
upfront.
Option 2: Partial Stipend Release
• Employer releases a partial stipend amount, deducting the government's share.
• The government's share is received by the employee within 7-10 days of
completing the DBT process.
Training Details:
On Job Training (OJT):
• Also known as Related Instructions (RI), these are instructions/training
imparted on a day-to-day basis to candidates about their core job by respective
department heads/team leads.
• The primary objective of OJT is to impart the necessary skills and knowledge
required for a candidate to effectively execute their job role. This hands-on
training enables candidates to develop the competencies and expertise needed
to perform their duties efficiently and effectively.
Supporting Organizations through Apprenticeship Implementation:
At Geega Corpsol, we aim to support companies in growing through employee
development. Our solution focuses on NATS implementation with seamless
execution of process, compliance and administration.

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We take full responsibility for handling all aspects of apprenticeship management,
including:
• Compliance
• Liaoning with government
• End-to-end administration
Our streamlined process minimizes the employer's workload, limiting their
involvement to sharing monthly attendance records only. We take care of the rest,
ensuring a hassle-free experience for our employer partners.

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