Requirement of Mandatory Apprenticeship Program for SMEs brought down to 10% of Total Workforce | ||
Reform ID | B134 | |
Reform Description | Before: It was mandatory for all businesses to employ 20% of the workforce as apprentices which meant extra cost to businesses for unskilled employees.
After: Now, for the SMEs, mandatory apprenticeship threshold has been reduced to 10% of the workforce. |
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Sector | All Sectors | |
BeneficiariesAutomotive Owners | All Businesses | |
Jurisdiction/ Location | Balochistan | |
Department | Technical Education and Vocational Training Authority, Govt of Balochistan | |
Date of Implementation | 02-01-2018 | |
Details | Difficulty | The Factories Act, 1934 required that every business had to employ and train apprentices; and the threshold was set to be 20% of total employment. This was a challenge for SMEs because of their limited resources. SMEs had to bear expenses of un-skilled apprentices who had little to contribute to the efficiency or productivity of business. |
Analysis | The requirement for apprenticeship at a rate of 20% of total employees was an unnecessary burden for SMEs which required reconsideration. | |
Solution | To facilitate SMEs, the threshold of apprenticeship programs under the law has now been reduced from 20% to 10%. This will reduce the financial burden of SMEs and provide them space to hire skilled employees. | |
Evidence |
Evidence |
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