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A Perspective on NEEM (National Employment Enhancement Mission)

Posted by: ericmikio on 2 May 2019 in Compliance, HR, Human Capital Management, Payroll, Talent Management, Thought Leadership

Volume – 37 of Coffee Break Compliance Guide from Anandan Subramaniam

Considering the availability of enormous potential manpower, the Government of India, in 2013 has taken an initiative to improve the skills, suitable to various industry segments. One among such inventive is NEEM (National Employment Enhancement Mission) – a Program governed by AICTE (All India Council for Technical Education).

Objective: To develop a competent workforce through “On the Job Training”. Besides it is a “Learn and Earn” scheme. Through this scheme, trainees get the opportunity to get exposed to the real working atmosphere and challenges during performance. While it is a chance to work with advanced machines and equipment in manufacturing facilities, it is latest techniques and solutions in service industries.

Who can be a NEEM Trainee?

  • Any individual, in the age group of 16 to 40 years
  • Any individual either be pursuing his or her Post Graduation/ graduation/ Diploma in any technical or non-technical stream or may have discontinued studies after Class 10th
  • The individual should be medically fit as per the norms of the industry, where he/she is going to be engaged for On the Job Training
  • Duration of the training is – minimum 3 months and maximum 36 months

Who is a NEEM Facilitator?

  • Any Society/Trust/Company registered under Section 25 of Companies Act, 1956 / Section 8 of Company Act, 2013
  • Who is in the business of training for at least five years
  • Shall have turnover and capacity to place students in registered companies or registered industries for the purpose of providing training under the objective of NEEM
  • NEEM Facilitator shall register with AICTE, to be become an approved Facilitator

Employer’s duty in engaging NEEM Trainees

  • Suitable MoU needs to be signed between the NEEM Facilitator & employer
  • The Trainees can be engaged only in areas where they get trained through supervision.
  • Daily attendance is mandatory. Monthly progress report is to be uploaded on AICTE Portal.
  • AADHAR details are mandatory, except for North-eastern region and J&K
  • Employers may offer, transportation, canteen or any other facility to such Trainees, which is not mandatory
  • Employer needs to cover such trainees under Employee Compensation Policy, hence there is no requirement to cover under ESI
  • As per the rules of AICTE, PF does not attract the Stipend paid to the NEEM trainees, but the EPFO, quoting the provisions of the Act, states that they cannot be excluded.
  • Working hours, Leave, Holidays can be prescribed to such trainees, as per the Organization policy
  • A Trainee cannot usually be engaged beyond such working hours, without approval of designated supervisory authority
  • Statutory Bonus and Gratuity are not applicable to such Trainees

Stipend and Certification:

  • NEEM Facilitator shall pay all enrolled NEEM trainees a remuneration/stipend which shall be at par with the prescribed minimum wages for unskilled category
  • A system generated certificate will be issued by the council which can be downloaded from the AICTE Portal

Industries where the NEEM trainees can be engaged

(1). Automobile & Auto component (2) Chemicals & Pharmaceuticals (3) Electronics & Hardware (4) Textiles & Garments (5) Leather & Leather Goods (6) Gem &nd Jewelry (7) Building & Construction (8) Food Processing (9) Handlooms & Handicrafts (10) Real Estate, Building, Hardware & Home furnishings (11) ITS or Software Services and ITeS BPO Services (12) Tourism Hospitality & Travel Trade (13) Transportation, Logistics/Warehousing & Packaging (14) Organized Retail (15) Media, Entertainment, Broadcasting, Content Creation & Animation (16) Healthcare Services (17) Banking/Insurance & Finance (18) Education /Skill Development Services (19) FMCG, Consumer Durables Goods (20)Telecom & Telecom Infrastructure (21) Multi-Skill Manufacturing (22) Any Other

Advantages for Employers of engaging NEEM Trainee

  • The contract is only between the Facilitator and the Trainee
  • Absenteeism will be controlled as, such trainees are under control of the Facilitator
  • Any trainings, awareness programs, safety & security measures are taken care by the Facilitator
  • Being a learner, Trainees shall focus on getting oriented on the job and contribute to the industry
  • Productivity and Quality will set to increase with trained resources in the industry
  • Engagement of NEEM trainee does not guarantee employment contract with the Company / Industry where NEEM trainee is placed for training.
  • Either party viz., NEEM Trainee or NEEM facilitator can terminate the contract by giving notice of 30 days in advance
  • Contract of trainee would auto-expire on the expiry of period of training as mentioned in the contract
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TAGS: Education Employment NEEM OJT On-the-job Training Skills

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