Sections 6-8 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.
Sections 6 to 8 answer three practical questions. How long does training last (section 6)? When and how can a contract of apprenticeship end (section 7)? How many apprentices must or may an employer engage (section 8)? In each case the Act leaves much of the detail to the rules.
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 period of training is specified in the contract and, for every class of apprentice, is "such as may be prescribed". The contract ends on expiry of the period, or earlier by an order in writing of the Apprenticeship Adviser on an application by either party. If the employer is at fault, it pays compensation as may be prescribed; if the apprentice is at fault, the apprentice or guardian refunds the cost of training as determined by the Apprenticeship Adviser.
Section 6: period of apprenticeship training
The period "shall be specified in the contract of apprenticeship" and is then set out by class. Every clause ends with the same words, "such as may be prescribed".
| Clause | Who | Period |
|---|---|---|
| (a) | Trade apprentices who, after institutional training in a school or other institution recognised by the National Council, have passed the trade tests or examinations conducted by that Council or an institution it recognises | Such as may be prescribed |
| (aa) | Trade apprentices who, after institutional training in a school or institution affiliated to or recognised by a Board or State Council of Technical Education or another authority, or courses approved under a scheme the Central Government may specify by notification, have passed the tests conducted by that Board, Council or authority or by another authorised agency | Such as may be prescribed |
| (b) | Other trade apprentices | Such as may be prescribed |
| (c) | Graduate or technician apprentices and technician (vocational) apprentices | Such as may be prescribed |
The Act prints no number of months or years. The period is in rule 7 of the Apprenticeship Rules, 1992 and in Schedules I and I-B; our article on Rules 7 and 8 of the Apprenticeship Rules, 1992 explains it.
Clause (aa) is marked as substituted by Act 29 of 2014. Against the Gazette copy of the Apprentices (Amendment) Act, 2014, the consolidated copy is in error in two places: it prints "or course approved under any scheme" where the Gazette has "or courses approved under any scheme", and "or any agency authorised by the Central Government" where the Gazette has "or by any other agency authorised by the Central Government". The Gazette also changes clause (a) by replacing "determined by that Council" with "prescribed", and the copy shows "prescribed". In clause (c), the copy prints "technician (vocational) apprentices] and the period of apprenticeship training shall be such as may be prescribed"; the "and" does not fit the sentence.
Section 7: termination of the contract
| Sub-section | What it says |
|---|---|
| (1) | The contract terminates on the expiry of the period of apprenticeship training. |
| (2) | Either party may apply to the Apprenticeship Adviser for termination, and must send a copy of the application by post to the other party. |
| (3) | After considering the application and any objections filed by the other party, the Adviser may terminate the contract by order in writing, if satisfied that the parties or any of them have failed to carry out the terms and conditions and it is desirable in their interests to terminate. |
| (4) | Notwithstanding anything in any other provision of the Act, where the Adviser has terminated a contract before expiry and a new contract is being entered into with an employer, the Adviser may, if satisfied that the earlier contract could not be completed because of any lapse on the part of the previous employer, permit the period already undergone to be included in the period with the new employer. (Marked as inserted by Act 4 of 1997.) |
| Proviso | Where a contract is terminated (a) for the employer's failure to carry out the terms, the employer pays the apprentice compensation as may be prescribed; (b) for such failure by the apprentice, the apprentice or guardian refunds to the employer, as cost of training, such amount as may be determined by the Apprenticeship Adviser. |
Termination is therefore not at the employer's own will. The route is an application to the Adviser, a copy to the other side, a chance for the other party to object, and a written order. Our labour law compliance team can help you prepare a termination file that records the failures relied on.
Compensation and refund
Compensation under the proviso is "as may be prescribed". Rule 8 fills it. As printed in the copy of the Rules consulted (latest amendment marked: 20 January 2017), rule 8 makes an employer liable to pay compensation equivalent to the apprentice's three months' last drawn stipend where the contract is terminated through the employer's failure. Check the current Rules before relying on that figure. The refund by the apprentice is not fixed by any rule in the sources: it is left to the Apprenticeship Adviser, who determines the amount.
Section 7 has printing slips. The proviso is printed after sub-section (4) even though sub-section (3) ends with a colon, which suggests that the proviso belongs to sub-section (3). The copy also prints "a employer", "if he satisfied" and "as may prescribed". We read the section as printed and do not correct it silently.
Section 8: number of apprentices
Section 8 was substituted by Act 29 of 2014 and its wording matches the Gazette copy of the 2014 amending Act.
- Sub-section (1). The Central Government shall prescribe the number of apprentices to be engaged by the employer for designated trade and optional trade.
- Sub-section (2). Several employers may join together, either themselves or through an agency approved by the Apprenticeship Adviser, according to the guidelines issued from time to time by the Central Government, for the purpose of providing apprenticeship training to the apprentices under them.
The numbers are in rule 7B. As printed in the copy of the Rules consulted (latest amendment marked: 20 January 2017), rule 7B refers to employers with six or more workers, says engagement is not obligatory for an establishment with workers not exceeding forty, and sets a band of 2.5 per cent. to 10 per cent. of total strength within a financial year, with monthly limits of not less than 2 per cent. and not more than 15 per cent. These are figures from a dated copy, not the current limits; see our article on Rules 5 and 7B of the Apprenticeship Rules, 1992. The guidelines mentioned in section 8(2) are not in the sources, so nothing is said about them.
An example
Horizon Packaging Ltd and two nearby firms each want only a few apprentices. Reading section 8(2), they consider joining together through an agency approved by the Apprenticeship Adviser. Separately, one of Horizon's apprentices, Salma, repeatedly stays away from training. Horizon applies to the Adviser under section 7(2), posts a copy to Salma, and waits for her objections. If the Adviser finds that she failed to carry out the terms and orders termination, the proviso says Salma or her guardian refunds the cost of training in the amount the Adviser determines. If the failure had been Horizon's, it would owe compensation under rule 8.
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 termination files and head-count planning?
Termination, compensation and apprentice numbers all turn on records kept from day one. Our labour law compliance service can help you set up the application, notice and head-count records these sections call for.
Key takeaways
- Section 6 sets no period in the Act itself; each class is "such as may be prescribed" and the period is specified in the contract.
- The contract ends on expiry or by a written order of the Apprenticeship Adviser after an application and a hearing of objections.
- Compensation by a defaulting employer is as prescribed; refund by a defaulting apprentice is as determined by the Adviser.
- Section 7(4) lets the Adviser count earlier training with the new employer where the earlier employer was at fault.
- Section 8 leaves numbers to the rules and allows employers to join together.
Read next
- Section 9: practical and basic training of apprentices
- Rules 7 and 8: period of training, extension and compensation
- Rules 5 and 7B: reservation and number of apprentices
- Section 5: novation, optional trade and apprentices from other States
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.