Section 2 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 2 of the Apprentices Act, 1961 defines the words the rest of the Act relies on. This article covers clauses (a) to (g): All India Council, apprentice, apprenticeship training, Apprenticeship Adviser, Apprenticeship Council, appropriate Government, Board or State Council of Technical Education, designated trade, employer and establishment. If you need these terms applied to your own business, our employment and labour law advisory team can help. The remaining clauses are in our second article on section 2.
This article is based on the consolidated text of the Act consulted (amended up to Act 29 of 2014). Later amendments should be checked before you rely on it.
An apprentice is a person undergoing apprenticeship training in pursuance of a contract of apprenticeship. A designated trade is a trade, occupation, subject field or vocational course that the Central Government specifies by notification after consulting the Central Apprenticeship Council. An employer is any person who employs one or more persons in an establishment for remuneration. Which Government is the appropriate Government depends on the kind of establishment.
The clauses in order
| Clause | Term | Meaning as printed (in short) |
|---|---|---|
| (a) | All India Council | The All India Council of Technical Education established by a resolution of the Government of India in the former Ministry of Education, No. F. 16-10/44-E-III, dated 30 November 1945 |
| (aa) | apprentice | A person who is undergoing apprenticeship training in pursuance of a contract of apprenticeship |
| (aaa) | apprenticeship training | A course of training in any industry or establishment, undergone in pursuance of a contract of apprenticeship and under prescribed terms and conditions, which may differ for different categories of apprentices |
| (b) | Apprenticeship Adviser | The Central Apprenticeship Adviser appointed under section 26(1) or the State Apprenticeship Adviser appointed under section 26(2) |
| (c) | Apprenticeship Council | The Central or State Apprenticeship Council established under section 24(1) |
| (d) | appropriate Government | See below |
| (dd) | Board or State Council of Technical Education | The Board or State Council of Technical Education established by the State Government |
| (e) | designated trade | See below |
| (f) | employer | See below |
| (g) | establishment | See below |
Apprentice and apprenticeship training
Clause (aa) defines an apprentice by two things: the person is undergoing apprenticeship training, and the training is under a contract of apprenticeship. Without the contract, the person is not an apprentice under this Act. The contract itself is dealt with in section 4; see our article on the contract of apprenticeship and registration.
Clause (aaa) defines apprenticeship training as a course of training in any industry or establishment, under prescribed terms and conditions. "Prescribed" means prescribed by the rules made under the Act (clause (m)). The terms can differ for different categories of apprentices, which is why the Act later treats trade apprentices, graduate or technician apprentices and technician (vocational) apprentices separately.
Appropriate Government: who decides
Clause (d) tells you whether the Central Government or the State Government is the "appropriate Government". In relation to the following, it is the Central Government:
- the Central Apprenticeship Council;
- the Regional Boards;
- the practical training of graduate or technician apprentices or of technician (vocational) apprentices;
- any establishment of any railway, major port, mine or oilfield;
- any establishment which is operating business or trade from different locations situated in four or more States;
- any establishment owned, controlled or managed by the Central Government or a department of it, by a company in which not less than fifty-one per cent of the share capital is held by the Central Government (or partly by that Government and partly by one or more State Governments), or by a corporation, including a co-operative society, established by or under a Central Act which is owned, controlled or managed by the Central Government.
In relation to a State Apprenticeship Council, and any establishment other than those listed above, it is the State Government.
The item about four or more States (clause (d)(1)(bb)) is marked in the copy as inserted by Act 29 of 2014. We checked it against the Gazette copy of the Apprentices (Amendment) Act, 2014, and the wording matches. A multi-State business therefore needs to count the States in which it operates from different locations, not only its registered office. Which Government's notifications you must follow is therefore a question to settle early.
Designated trade
Clause (e) says a designated trade means any trade or occupation or any subject field in engineering or non-engineering or technology or any vocational course which the Central Government, after consultation with the Central Apprenticeship Council, may specify as a designated trade for the purposes of the Act, by notification in the Official Gazette. The Gazette copy of the 2014 amending Act has the same wording.
Two things follow. First, an employer cannot decide on its own that a role is a designated trade; the Central Government specifies it. Second, the consolidated copy prints no notification of designated trades, and none is covered here. (For comparison, "optional trade" in clause (ll) is the one the employer determines; that is explained in our other article on section 2.)
Employer and establishment
Clause (f): an employer is any person who employs one or more other persons to do any work in an establishment for remuneration, and includes any person entrusted with the supervision and control of employees in such establishment. The threshold is one employee, not a number of workers; and the definition reaches the person entrusted with supervision and control.
Clause (g): an establishment includes any place where any industry is carried on. Where an establishment consists of different departments or has branches, whether in the same place or at different places, all such departments or branches are treated as part of the establishment. The words "as part of the establishments" are printed in the plural in the copy. We quote them as printed.
Printing points to notice
- Clause (a) ends with ";)]" in the copy, and a footnote says the original clause (a) was renumbered (aa) and a new clause (a) inserted by Act 27 of 1973.
- In clause (d)(1)(c)(ii), the copy prints "on partly by that Government" where the sense is "or partly".
- In clause (e), a square bracket closes after "non-engineering" and the sentence carries on. The footnote there says "Ins. by Act 29 of 2014", while the Gazette copy of the amending Act says clauses (e), (j) and (k) are substituted.
- Clause (aa) shows asterisks where words were omitted by Act 27 of 1973. We do not say what they were.
An example
Bluegrass Foods Ltd has branches in several cities and one registered office. Its HR head, Imran, reads clause (g) and treats every branch as part of one establishment. He then reads clause (d)(1)(bb) and asks whether the company operates from different locations in four or more States. If so, the text names the Central Government as the appropriate Government in relation to that establishment. If not, and no other limb of clause (d)(1) applies, clause (d)(2)(b) points to the State Government.
The four Labour Codes are in force from 21 November 2025; check the current position before relying on any other labour law.
Need help with applying these definitions to your business?
Working out whether you are an employer, what your establishment covers and which Government is the appropriate Government is the first step in apprentice compliance. Our employment and labour law advisory team can walk through your structure and trades with you.
Key takeaways
- An apprentice exists only where there is a contract of apprenticeship.
- A designated trade is specified by the Central Government by notification, after consulting the Central Apprenticeship Council.
- An employer is any person who employs one or more persons in an establishment for remuneration, including a person entrusted with supervision and control.
- All departments and branches count as part of one establishment.
- The appropriate Government is the Central Government for the listed bodies and establishments, including those operating from four or more States; otherwise the State Government.
Read next
- Section 2: trade apprentice, graduate apprentice, optional trade and worker
- Section 1: short title, extent, commencement and application
- Section 4: contract of apprenticeship and registration
- Labour law compliance checklist for employers
Disclaimer: Based on a consolidated text of the Apprentices Act, 1961 amended up to Act 29 of 2014, on the Gazette of India copy of the Apprentices (Amendment) Act, 2014, and on a consolidated copy of the Apprenticeship Rules, 1992 in which the latest amendment marked is dated 20 January 2017, as consulted on 2 October 2026. Stipend rates and other figures are as printed in those texts and may have been revised; later amendments and the position under the Labour Codes in force from 21 November 2025 should be checked. This article is general information, not legal advice; check the official text before acting.