Threshold of Mandatory Apprenticeship Programme decreased for SMEs |
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Reform ID | P029 | |
Reform Description | Requirement of Mandatory Apprenticeship Programme for SMEs brought down to 10% of Total Workforce
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 | |
Beneficiaries | All Businesses | |
Jurisdiction/Location | Punjab | |
Department | Labour & Human Resource Department , Punjab | |
Date of Implementation | ||
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 programmes 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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