What section 16 does
Makes the employer liable for prescribed compensation where injury arises out of and in the course of training.
Connected instrument: Schedule V/VI
Finin2min practical reading
- Identify the apprentice category, trade, establishment jurisdiction and applicable portal before applying the provision.
- Separate statutory apprenticeship from internships, probation, traineeships and ordinary employment.
- Do not treat scheme reimbursement as a substitute for the employer’s underlying statutory obligations.
- Preserve the contract, approvals, portal trail and training evidence as one auditable file.
Employer control and evidence pack
- Executed/registered contract and portal acknowledgement
- Training plan, attendance/work diary and supervisor records
- Stipend bank/DBT evidence where relevant
- Adviser approval, correspondence or order where the section requires it
Statutory text extract
Extracted from the bundled official/consolidated source. For sections amended in 2026, the current overlay above controls over older consolidated wording.
16. Employer’s liability for compensation for injury.—If personal injury is caused to an apprentice by accident arising out of and in the course of his training as an apprentice, his employer shall be liable to pay compensation which shall be determined and paid, so far as may be, in accordance with the provisions of the Workmen’s Compensation Act, 1923 (8 of 1923), subject to the modifications specified in the Schedule.
Compliance consequence
Failure should be tested against sections 30, 31 and 31A as in force from 22 June 2026, alongside contract termination/compensation consequences and any portal or scheme action.