Clarification of status of student-trainees of educational/ technical institutes recognised by Central State Government or any authority constituted by them, vis-a-vis the Employees Provident Funds & Miscellaneous Provisions Act, 1952-

1. A reference was received in which a clarification on the status of student- trainee vis-a-vis the provision of the Employee Provident Funds & Miscellaneous Provisions Act, 1952 was sought from Head Office.
2.  It is a matter of common observation that now-a-days most technical- professional educational institutes impart industrial training/ practical on the job training to their students as an integral component of academic curriculum. During such training period, student-trainees are exposed to modern technical development and hands-on training of working on sophisticated equipment/ instruments etc. Stipend may also be provided to such student- trainees, sometime. After such industrial! on the job training, the student-trainee goes back to his respective institution for completion of the academic course.
3. In such cases, it is made clear that employer employee relationship does not exist between the industry and student-trainee, who is on industrial on the job training as an integral component of a recognized course of an educational! technical institute recognized by the Central! State Government or any other authority constituted by the Central!State Government. Therefore, the payment of stipend, if any, provided by the industry to such student-trainees do not attract the provisions of the Employee Provident Funds & Miscellaneous Provisions Act, 1952. However for the students getting placement in companies and appointed as employees of establishment, Employee Provident Funds & Miscellaneous Provisions Act, 1952 will be applicable on such employees even during on the job training/induction/other training taken after becoming employee.