|Eliminate Requirement of Mandatory Apprenticeship Program from 20% of Employees to 10%, for SMEs|
|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.
|Jurisdiction/ Location||Khyber Pukhtunkhwa|
|Department||Khyber Pakhtunkhwa Technical Education and Vocational Training Authority|
|Date of Implementation||3-08-2022|
|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.|
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