Section 22 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 22 deals with what happens after apprenticeship training ends. Every employer must formulate its own policy for recruiting an apprentice who has completed training in its establishment. Where the contract of apprenticeship contains a condition that the apprentice will serve the employer after training, the employer must offer suitable employment and the apprentice must serve, for the period and on the remuneration specified in the contract, which the Apprenticeship Adviser may revise if unreasonable.
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.
Every employer must formulate its own policy for recruiting an apprentice who has completed the period of apprenticeship training in the establishment. If the contract contains a condition to serve the employer after training, the employer must offer suitable employment and the apprentice must serve for the period and on the remuneration specified in the contract. If the period or remuneration is not reasonable in the Adviser's opinion, the Apprenticeship Adviser may revise it.
Sub-section by sub-section
| Sub-section | What it says |
|---|---|
| (1) | Every employer shall formulate its own policy for recruiting any apprentice who has completed the period of apprenticeship training in his establishment. |
| (2) | Notwithstanding sub-section (1), where there is a condition in a contract of apprenticeship that the apprentice shall, after the successful completion of the training, serve the employer, the employer shall on completion be bound to offer suitable employment to the apprentice, and the apprentice shall be bound to serve the employer in that capacity for such period and on such remuneration as may be specified in the contract. |
| Proviso | Where the period or remuneration is not, in the opinion of the Apprenticeship Adviser, reasonable, he may revise it so as to make it reasonable, and the revised period or remuneration is deemed to be the period or remuneration agreed between the apprentice and the employer. |
Sub-section (1): the employer's own policy
Sub-section (1) is marked as substituted by Act 29 of 2014. We checked it against the Gazette copy of the Apprentices (Amendment) Act, 2014, and the wording is the same. It places a duty on every employer to have a recruitment policy for apprentices who complete training in its establishment. The Act does not say what the policy must contain, and it does not say that the employer must hire anyone merely because the training is complete. The word "own" means the content is for the employer to decide, within the law. No rule in the sources fills in the policy, so no form or content is stated here. For help in drafting, our employment and labour law advisory team can assist.
A practical policy would say how vacancies are advertised to completed apprentices, how the performance record and the test result are weighed, and who decides. Those are suggestions, not requirements of the section.
Sub-section (2): the service condition
Sub-section (2) opens with "Notwithstanding anything in sub-section (1)". It applies only where the contract of apprenticeship itself contains a condition that the apprentice will, after successful completion of the training, serve the employer. Two obligations arise at once.
- The employer is bound, on completion, to offer suitable employment to the apprentice.
- The apprentice is bound to serve the employer in that capacity for such period and on such remuneration as may be specified in the contract.
Three points follow from the words. The condition must be in the contract, so an oral promise outside the contract does not trigger the sub-section. The trigger is "successful completion" of the training. And the offered employment must be "suitable", a word the section does not define. The period and the remuneration are fixed by the contract, not by the Act, which prints no figure. The contract is made under section 4; see our article on section 4 (contract of apprenticeship and registration).
Drafting such a condition is a contract-drafting task. For general reading on contract wording, see our posts on employment contract draft key clauses and on stamp duty on an employment agreement. Section 22 itself says nothing about stamp duty.
The proviso: the Adviser can revise
The proviso is the safety valve. If the Apprenticeship Adviser forms the opinion that the period or the remuneration in the contract is not reasonable, the Adviser may revise it to make it reasonable. The revised period or remuneration is deemed to be what the apprentice and employer agreed. The proviso gives the Adviser the power; it does not say who may apply, how the Adviser forms the opinion, or what time limit applies. The copy prints "shall be deemed to the period of remuneration agreed to", which reads as a slip for "deemed to be the period or remuneration agreed to"; we quote it as printed and do not correct it silently.
Reading section 22 with other sections
- Section 4 requires the contract and its registration; a service condition forms part of the contract that is sent to the Adviser.
- Section 13 deals with the stipend during training. The remuneration after training under section 22(2) is a different payment, "as may be specified in the contract".
- Section 20 sends disputes arising out of the contract to the Apprenticeship Adviser. A disagreement over the service condition is a dispute "arising out of the contract". See our article on sections 19-20.
The four Labour Codes are in force from 21 November 2025; check the current position before relying on any other labour law.
An example
Harbor Logistics signs a contract with Tanvi under which she will, after successful completion of her apprenticeship, serve Harbor for four years at a stated monthly remuneration. She completes the training. Under section 22(2) Harbor is bound to offer her suitable employment, and she is bound to serve in that capacity for the contract period. Tanvi thinks four years is too long for the pay. She asks the Apprenticeship Adviser to look at it; if the Adviser considers the period or remuneration not reasonable, the Adviser may revise it, and the revised terms are deemed to be what she and Harbor agreed. A colleague, Dev, whose contract has no service condition, falls under sub-section (1): Harbor must have a recruitment policy, but section 22(2) does not bind either side.
Need help with post-apprenticeship employment terms?
A service condition that is clear, reasonable and consistent with the contract is far less likely to be revised or disputed. Our employment and labour law advisory service can help you draft the condition and the recruitment policy.
Key takeaways
- Every employer must formulate its own policy for recruiting apprentices who have completed training in its establishment.
- Where the contract has a service condition, the employer must offer suitable employment and the apprentice must serve for the period and remuneration specified.
- The Apprenticeship Adviser may revise an unreasonable period or remuneration.
- The Act prints no figure for the period or the remuneration.
- The proviso's wording has a slip ("deemed to the period of remuneration") that we quote as printed.
Read next
- Section 21: test, certificate and conclusion of training
- Section 4: contract of apprenticeship and registration
- Sections 19-20: records, returns and settlement of disputes
- Employment agreement: key clauses, non-compete, IP assignment and compliance
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.