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.
Clauses (h) to (r) of section 2 complete the definitions of the Apprentices Act, 1961. They separate the public sector from the private sector, define the three classes of apprentice, and explain "optional trade", "portal-site", "prescribed", "Regional Board" and "worker". If you need help applying them to your intake, our employment and labour law advisory team can assist. The earlier clauses, (a) to (g), are in our first 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.
The Act has three classes of apprentice: the trade apprentice, the graduate or technician apprentice, and the technician (vocational) apprentice. The first undergoes training in a designated trade; the second holds or is training for a degree or diploma; the third holds or is training for a vocational certificate involving two years of study. An optional trade is one the employer determines. A worker does not include an apprentice.
The clauses at a glance
| Clause | Term | Meaning as printed (in short) |
|---|---|---|
| (h) | establishment in private sector | An establishment which is not an establishment in public sector |
| (i) | establishment in public sector | One owned, controlled or managed by the Government or a department, a Government company, a corporation (including a co-operative society) established by or under a Central, Provincial or State Act, or a local authority |
| (j) | graduate or technician apprentice | An apprentice who holds, or is undergoing training to hold, a degree or diploma in engineering or non-engineering or technology or equivalent qualification granted by an institution recognised by the Government, and who undergoes apprenticeship training in any designated trade |
| (k) | industry | Any industry or business in which any trade, occupation, subject field or vocational course may be specified as a designated trade or optional trade or both |
| (l) | National Council | The National Council for Training in Vocational Trades, as printed, re-named the National Council for Vocational Training |
| (ll) | optional trade | Any trade, occupation, subject field in engineering or non-engineering or technology or any vocational course as may be determined by the employer |
| (lll) | portal-site | A website of the Central Government for exchange of information under the Act |
| (m) | prescribed | Prescribed by the rules made under the Act |
| (mm) | Regional Board | A board of Apprenticeship Training registered under the Societies Registration Act, 1860 (21 of 1860), at Bombay, Calcutta, Madras or Kanpur |
| (n) | State | Includes a Union Territory |
| (o) | State Council | A State Council for Training in Vocational Trades established by the State Government |
| (p) | State Government | In relation to a Union Territory, the Administrator |
| (pp) | technician (vocational) apprentice | See below |
| (q) | trade apprentice | An apprentice who undergoes apprenticeship training in any designated trade |
| (r) | worker | See below |
The three classes of apprentice
The Act treats the classes differently in later sections, so the definitions matter.
- Trade apprentice (clause (q)): an apprentice who undergoes apprenticeship training in any designated trade. No educational qualification is stated in the definition itself.
- Graduate or technician apprentice (clause (j)): an apprentice who holds, or is undergoing training in order that he may hold, a degree or diploma in engineering or non-engineering or technology or equivalent qualification granted by any institution recognised by the Government, and who undergoes apprenticeship training in any designated trade.
- Technician (vocational) apprentice (clause (pp)): an apprentice who holds, or is undergoing training in order that he may hold, a certificate in a vocational course involving two years of study after the completion of the secondary stage of school education recognised by the All-India Council, and who undergoes apprenticeship training in a designated trade.
Clauses (j), (k), (pp), (q) and (r) are marked in the copy as substituted by Act 29 of 2014. We checked clauses (j), (k), (ll), (lll), (pp), (q) and (r) against the Gazette copy of the Apprentices (Amendment) Act, 2014 and the wording is the same. If you are engaging someone, ask first which of the three classes the person falls in, because the period of training, the stipend arrangements and the certificate follow from the class.
Optional trade and portal-site
An optional trade is a trade, occupation, subject field or vocational course "as may be determined by the employer for the purposes of this Act". It is the counterpart of the designated trade, which the Central Government specifies. Section 5A deals with its regulation; see our article on novation, optional trade and apprentices from other States.
A portal-site is a website of the Central Government for exchange of information under the Act. The Act says "portal-site" and this series uses the same word. The copy of clause (lll) ends with an extra apostrophe and semicolon after the closing bracket, which is a printing slip.
Public sector, private sector and the other bodies
Clause (i) lists four heads of the public sector: the Government or a department; a Government company "as defined in Section 617 of the Companies Act, 1956 (1 of 1956)"; a corporation (including a co-operative society) established by or under a Central, Provincial or State Act; and a local authority. Clause (mm) refers to the Societies Registration Act, 1860 (21 of 1860). These references are quoted as printed; check the current law for the corresponding provisions.
Clause (mm) lists Bombay, Calcutta, Madras and Kanpur exactly as the copy prints them. Clause (l) says the National Council was established by a resolution of the Government of India in the Ministry of Labour dated 21 August 1956 and re-named by a resolution dated 30 September 1981, as the copy prints.
"Worker" and why it excludes apprentices
Clause (r) says a worker means any person working in the premises of the employer, who is employed for wages in any kind of work either directly or through any agency including a contractor and who gets his wages directly or indirectly from the employer, but shall not include an apprentice referred to in clause (aa). Two points stand out. The definition reaches people engaged through a contractor, a topic our site covers in a general post on the Contract Labour Regulation Act, 1970 and principal employer obligations. And it carves out the apprentice. Section 9 of the Act uses "workers" for headcount purposes, so this carve-out matters when you count.
The copy prints doubled opening and closing quotation marks around "worker" and leaves the closing bracket open; both are layout slips. Several other square brackets in clauses (j), (pp) and (q) are also opened and never closed.
The four Labour Codes are in force from 21 November 2025; check the current position before relying on any other labour law.
An example
Kiran Tech Services employs 40 people in its premises, 10 of them through a contractor, and also has 6 apprentices. Reading clause (r), the HR lead counts the 10 contract staff as "workers" because they work in the premises, are employed for wages through an agency including a contractor, and are paid indirectly from the employer. She does not count the 6 apprentices, because clause (r) excludes an apprentice referred to in clause (aa). Whether that count is used for a particular duty depends on the section concerned.
Need help with classifying apprentices and counting workers?
Choosing the right class of apprentice and counting workers correctly affects the contract, the training and the records you keep. Our employment and labour law advisory team can review your engagement plan before you sign contracts.
Key takeaways
- There are three classes: trade apprentice, graduate or technician apprentice and technician (vocational) apprentice.
- A designated trade is specified by the Central Government; an optional trade is determined by the employer.
- A portal-site is a website of the Central Government for exchange of information under the Act.
- A worker includes persons engaged through a contractor but not an apprentice referred to in clause (aa).
- "State" includes a Union Territory and "prescribed" means prescribed by rules under the Act.
Read next
- Section 2: apprentice, designated trade, employer and establishment
- Sections 3, 3-A and 3-B: qualifications and reservation of training places
- Section 18: apprentices are trainees and not workers
- 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.