Apprenticeship Act 2018

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APPRENTICESHIP ACT, 2018. 
 
 
 
 
 
 
 
CONTENTS  
 
1.  Short title, extent and commencement. 
 
2.  Definitions.  
 
3.  Apprenticeship contract. 
 
4.  Termination of apprenticeship contract. 
 
5.  Apprenticeship committees. 
 
6.  Apprenticeship fund. 
 
7.  Obligations of employers. 
 
8.  Obligations of apprentices. 
 
9.  Counseling and placement service. 
 
10.  Advice and guidance to employers. 
 
11.  Powers of entry, inspection etc. 
 
12.  Delegation of powers. 
 
13.  Penalties and procedure. 
 
14.  Power to exempt. 
 
15.  Saving. 
 

 
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16.  Act to override other laws. 
 
17.  Power to make rules. 
 
18.  Repeal. 
 
  
 
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APPRENTICESHIP ACT, 2018. 
 
ACT NO. I OF 2018 
[29th December, 2017] 
 
An Act to make provisions for promoting, developing and regulating systematic apprenticeship 
programmes in the establishments for securing certain minimum standards of skill 
 
WHEREAS it is expedient to make provisions for promoting, developing and regulating 
systematic apprenticeship programmes in the establishments and for securing certain minimum standards 
of skill and for matters connected therewith or incidental thereto; 
 
It is hereby enacted as under: 
 
1. Short title, extent and commencement.___(1) This Act may be called the Apprenticeship Act, 
2018. 
 
(2) It extends to such areas in the Federation as are not included in any province. 
 
(3) It shall come into force at once. 
 
2. Definitions. In this Act, unless there is anything repugnant in the subject or context,— 
 
(a)  “apprentice” means a person who is undergoing into a trade, graduate or technician 
apprenticeship training, hold a technical vocational qualification, diploma or a 
degree from a recognized institution, in pursuance of a contract of apprenticeship 
including those in informal sector but shall not be treated as worker or any class of 
workers other than trainee; 
 
(b)  “apprenticeship” means a system of training which combines practical training in 
an establishment and theoretical training in a registered institute in pursuance of a  
contract of apprenticeship; 
 
(c)  “apprenticeship fund” means the fund established under section 6;  
 
(d)  “authority” means the National Vocational and Technical Training Commission 
established under the National Vocational and Technical Training Commiss ion 
Act, 2011 (XV of2011 ); 
 
(e)  “Board” means a Trade Testing Board or Board of Technical Education or any other 
body set up by the Federal Government for conducting assessment, testing and 
certification in respect of apprentices; 
 
(f)  “competent authority” means such officer not below the rank of BPS -20 of  the 
Federal Government as the authority may, by notification in official Gazette, 
appoint robe a competent authority for the purposes of this Act; 
 
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(g)  “designated trade” means any trade or occupatio n or any subject, field in 
engineering, technology, service, vocation or management; 
 
(h)  “employer” means any person who employs another person in an establishment, 
including an employer who has an ultimate control over the affairs of an 
establishment or is responsible to its owner for those affairs; 
 
(i)  “establishment” means an industrial, commercial, business, mining, exploration, 
services or any other organization including those in informal sector as the 
competent authority may, by notification in the official Gazette, specify; 
 
(j)  “informal apprenticeship” means an informal system of training in which 
apprentices or workers are being trained and gaining skills for a designated trade at 
an establishment; 
 
(k)  “National Vocational Qualification Framework” or “NVQF” means the National 
Vocational Qualification Framework set up by the authority to determine, define 
and manage technical and vocational qualifications including those for 
apprenticeship; 
 
(1)  “prescribed” means prescribed by rules; 
 
(m)  “rules” means rules made under this Act; and 
 
(n)  “stipend” means a monthly emolument paid by an employer to apprentices during 
entire period of training at a rate of minimum of fifty percent of  minimum wages 
prescribed by the Federal Government. 
 
3. Apprenticeship contract. ___(1) No person shall be engaged as an apprentice to undergo 
apprenticeship in a designated trade unless such person enters into an apprenticeship contract with the 
employer as may be prescribed by the authority. 
 
(2) Every appren ticeship contract entered into under sub -section (1) shall be sent by employer 
within prescribed period to the competent authority for registration. 
 
(3) The competent authority shall not register an apprenticeship contract unless it is satisfied that 
the person described as an apprentice in contract possesses prescribed minimum eligibility requirement. 
 
4. Termination of apprenticeship contract.___(1) The apprenticeship contract shall terminate on 
completion of the period of apprenticeship. 
 
(2) Either party to the apprenticeship contract may in writing inform the other party for termination 
of the contract during its pendency. Such application shall be sent by post to the other party of the contract. 
If both parties agreed, the contract shall be terminated accordingly. 
 
 
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(3) If a party is aggrieved of  such termination it shall submit its grievance to the authority and 
decision of the authority thereon shall be final: 
 
Provided that where a contract is terminated in case of failure on the part of the___ 
 
(a)  employer to carry out the te rms and conditions of the contract, the employer shall 
pay to the apprentice an amount equal to double the amount of  stipend for the 
remaining period; 
 
(b)  apprentice, he shall refund to the employer cost of training which shall not exceed 
the amount of three months stipend paid, however, this condition shall be waived 
of by the competent authority on genuine grounds or unavoidable circumstances 
which compel an apprentice to terminate the apprenticeship contract. 
 
5. Apprenticeship committees. The authority may, by notification in official Gazette, constitute 
such apprenticeship committees under the chairmanship of an employer with forty percent representation 
from employers, forty percent from the Federal Government and twenty percent from elected workers to 
monitor and advise the competent authority on matters relating to apprenticeship as may be prescribed. 
 
6. Apprenticeship fund.___(1) The authority may establish a fund to be called the apprenticeship 
fund for carrying out its functions. The apprenticeship fund may also be used for___ 
 
(a)  promotion of apprenticeship training; 
 
(b)  reimbursement of partial cost of training not exceeding fifty percent to employers 
as may be prescribed; and 
 
(c)  welfare schemes for apprentices. 
 
(2) The Federal Government shall provide funds and annual grants, for the purposes of  this Act, 
to the authority which shall be deposited in the apprenticeship fund. 
 
(3) All receipts of the authority relating to this Act in any form whatsoever including the fees etc., 
deposited under this Act shall be credited to the apprenticeship fund. 
 
(4) The mechanism for operation of the apprenticeship fund shall be prescribed by the authority 
on the advice of apprenticeship committee with prior approval of the Federal Government. 
 
7. Obligations of employers. Subject to other provisions of this Act and rules made thereunder, 
an employer shall—  
 
(a)  be bound to ensure proper compliance with the provisions of this Act and the rules 
made thereunder in his establishment; 
 
(b)  introduce and operate an apprenticeship programme in his establishment within 
such time as may be prescribed; 
 
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(c)  train apprentices in a proportion of minimum five percent or more of the total 
number of persons employed on an average, in his establishment, or in such other 
proportion as the competent authority may, by order in writing, determine in respect 
of his establishment: 
 
Provided that, if an employer chooses not to train apprentices in proportion 
as required under this Act, he shall pay training contribution to apprenticeship fund 
which shall be in proportion to training cost he would have otherwise incurred in 
meeting his liability or he may get required number of persons trained from any 
other establishment at his cost; 
 
(d)  be responsible to ensure that an apprentice receives within the normal working 
hours related theoretical instructions to the extent as may be specified by the 
authority; 
 
(e)  bear the cost of  training of  apprentices during his apprenticeship within the 
industry, excluding the cost of training at an institute, which shall be borne by the 
authority; 
 
(f)  not, without the approval in writing of the competent authority, engage any person 
as an apprentice who has been an apprentice with another employer and has left his 
apprenticeship or been terminated by such other employer on disciplinary grounds; 
and 
 
(g)  be responsible to notify well in time an apprenticeship opportunity including  job 
openings in his establishment on designated websites of the authority  in-a manner 
as the competent authority may specify. 
 
8. Obligations of apprentices. ___(l) Subject to other provisions of this  Act and the rules made 
thereunder, an apprentice shall___ 
 
(a)  learn his trade conscientiously and diligently and shall endeavor to qualify himself 
as a skilled worker on the completion of his apprenticeship; 
 
(b)  attend the practical training and related theoretical instructions according to the 
programme laid down by the employer; 
 
(c)  carry out all lawful orders of  the employe r or his representative relating to his 
apprenticeship and shall fulfill his obligations under the contract of apprenticeship: 
 
(d)  submit himself to any assessment, test or examination held from time to time for 
assessing the progress of his training; 
 
 
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(e)  in case any grievance against his employer arising out of his apprenticeship, 
approach the competent authority for redressal of the grievance. If the same is not 
redressed, shall abide by decision of the competent authority; and 
 
(f)  not, except with prior approval in writing of the competent authority, leave his 
apprenticeship after completion of his probationary period as may be prescribed. 
 
(2) Without prejudice to anything contained in any other law for the time being in force, if  any 
apprentice fails to carry out terms of  the apprenticeship contract or, during the period of his training, 
voluntarily quits such apprenticeship or there are continued adverse reports regarding the progress of his 
training or he is terminated for misconduct which include insubordination and breach of the rules shall be 
liable to the payment of such refund of expenses and compensation as may be prescribed which shall not 
be more than three stipends paid to him during, period of training. 
 
(3) An apprentice shall be bound to obtain and get renewed on periodical basis his registration to 
be recognized as skilled worker or technician or professional in a designated trade in which he has 
successfully completed apprenticeship training in a manner as may be prescribed. 
 
9. Counseling and placement service. The authority shall___ 
 
(a)  establish facilities for career counseling and placement of the apprentices at such 
places and in such manner as may be prescribed; 
 
(b)  publish periodical newsletters, information bulletins i n print and electronic media 
including authority's website on career counseling and placement services 
including information on but not limited to new and emerging trades, market skills, 
trends and employment opportunities; and 
 
(c)  publish an annual report on progress of apprenticeship training programme. 
 
10. Advice and guidance to employ ers. Subject to the provisions of this Act and the rules, the 
competent authority shall offer to the employers all possible technical advice and guidance in all matters 
relating to the apprenticeship programme run by the employers in their establishments in accordance with 
the provisions of this Act and the rules. 
 
11. Powers of entry, inspection etc.___(1) Subject to any rules made in this behalf, the competent 
authority shall evolve and implement an effective monitoring and evaluation system and may___ 
 
(a)  with such assistants, if any, as it thinks fit, enter, inspect and examine an 
establishment or part thereof at any reasonable time; 
 
(b)  examine any apprentice employed therein or require the production of any register, 
record or other documents maintained in pursuance of this Act and take on the spot 
or otherwise statement of any person which it may consider necessary for carrying 
out the purposes of this Act· 
 
 
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(c)  make such examination and inquiry as it may deem fit in order to ascertain whether 
the provisions of this Act and the rules are being observed in the establishment; and 
 
(d)  exercise such other powers as may be prescribed. 
 
(2) Notwithstanding anything c ontained in sub -section (1), no person shall be compelled under 
this section to answer any question or make any statement,  which may tend directly or indirectly to 
incriminate him. 
 
12. Delegation of powers. Subject to any rules made in this behalf, the competent authority may, 
by order in writing, direct that any power conferred upon it by or under this Act shall be exercisable also 
by such officer subordinate to it and subject to such conditions as may be specified in the order. 
 
13. Penalties and procedure.___(1) If any employer___ 
 
 
(a)  fails to engage the number of apprentices he is required to engage under this Act; 
or 
 
(b)  fails to carry out the terms and conditions of a contract of apprenticeship; or 
 
(c)  refuses or neglects to furnish any information required to be furnished by him; or 
 
(d)  furnishes or causes to be furnished any information which is not believed to be true; 
or 
 
(e)  refuses or neglects to afford the competent authority or an officer authorized by it, 
any reasonable facility for making an entry, inspection, examination or inquiry 
authorized by or under this Act and the rules; or 
 
(f)  engages an apprentice otherwise than in accordance with the provisions of this Act 
and the rules; or 
 
(g)  otherwise contravenes any provisions of this Act and the rules, 
 
he shall be liable to a penalty which may extend up to twice the amount required to be paid as minimum 
stipend for the period of non-compliance to the minimum number of apprentices as required to be trained 
under this Act. The amount of any fine shall be deposited in the apprenticeship fund. 
 
(2) The authority may determine and decide the penalty under this Act:  
 
Provided that an aggrieved person may file an appeal to the authority through  apprenticeship 
committee within thirty days of imposition of a penalty under this  Act. The decision of the authority 
thereon shall be final. 
 
 
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14. Power to exempt.  The Federal Government may, on advice of  the authority, in consultation 
with apprenticeship c ommittee and by notification in the official Gazette, exempt conditionally, any 
establishment or class of establishments from all or any of the provisions of this Act for not more than one 
year, in case of natural calamity. 
 
15. Saving. Nothing in this Act applies to an establishment which has not been in existence at least 
for a period-of two years. 
 
16. Act to override other laws.  The provisions of this Act shall have overriding effect 
notwithstanding anything to contrary contained in any other law for the time being in force. 
 
17. Power to make rules.___(1) The authority shall, with approval of the Federal Government and 
in consultation with apprenticeship committee, make rules for carrying out the purposes of this Act. 
 
(2) In particular and without pr ejudice to the generality of  foregoing powers, such rules may 
provide for all or any of the following matters, namely:— 
 
(a)  method and conditions of engagement, selection and the period of probation of 
apprentice; 
 
(b)  conditions and terms of a contract of apprenticeship; 
 
(c)  method and procedure governing settlement of disputes between an apprentice and 
his employer; 
 
(d)  working hours, leave and holidays for apprentices; 
 
(e)  system, condition and procedure for formalizing informal apprenticeships 
including recognition of prior learning of informal sector apprentices; 
 
(f)  conditions of employment of apprentices after training; 
 
(g)  procedure for registration or licensing apprentices and its renewal;  
 
(h)  procedure of discipline, welfare, supervision and control of apprentices;  
 
(i)  forms of records to be maintained by the employers pertaining to the  training of 
apprentices; 
 
(j)  assessment procedure, periodical tests, final examination and grant of certificates 
on successful completion of training; 
 
(k)  composition, constitution and functions of, and filling of  vacancies in, the 
apprenticeship committee and procedure to be followed by such committee in 
discharge of its functions; 
 
 
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(l)  training of female and disabled persons;  
 
(m)  code of conduct and ethics; 
 
(n)  environment, health and safety; and 
 
(o)  welfare schemes for apprentices including but not limited to health insurance, group 
insurance etc. during the entire period of training. 
 
18. Repeal. The Apprenticeship Ordinance, 1962 (LVI of 1962) is hereby repealed to the extent 
of such areas in the Federation as are not included in any province. 
 
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