what is neem scheme?

What is NEEM Scheme?

NEEM Scheme, also known as National Employability Enhancement Scheme, is a pioneering initiative taken jointly by AICTE and Government of India. The Scheme aims at producing skilled labors and counters the problem of the skilled labor shortage in India. It provides for on the job training to the candidates. NEEM Scheme also has some great incentives for the participating industries. Industries becoming part of the NEEM Scheme enjoy liability free workforce. They can train the manpower as per their requirements and also have an option of absorbing them full time if need be.

AICTE exercising its power of under subsection 1 of Section 23, Read with section 10 of the AICTE act of 1987, (52 of 1987), has made certain regulations offering practical on the job training to students pursuing graduation and diploma. NEEM scheme is a part of this effort.

The scheme offers some really good incentives for the Industries too. Firstly, the labor or the workforce provided under NEEM Scheme is regulated by an agent. Hence the Industry does not have to worry about any legal liabilities. Secondly, the trainees are more disciplined and have a tendency to learn the skills faster. The Industry has the option of letting the trained labor go or they can absorb them full time. This creates a win-win situation for both the parties. Trainees get to learn the latest skills and get paid a stipend, the Industries get hassle-free skilled manpower.

Details of NEEM Scheme

Governing Agency: AICTE & Government of India

Objective as per official declaration: The objective of National Employability Enhancement Mission (NEEM) is to offer on the job practical training to enhance the employability of a person either pursuing his or her PostGraduation/graduation/diploma in any technical or non-technical stream or has discontinued
studies after Class 10th to enhance his/her employability.

The scheme clearly mentions that it aims to provide the underprivileged and under skilled youth of India with proper skill development avenue. What could be more beneficial for them than to get the latest skills that too without any expenditure? its one of the finest skills development scheme that the government has come up with.

NEEM Agent: Also known as NEEM Facilitator in official terminology.

The official document as issued by the government of India says the following about the NEEM Agent (known as neem facilitator )

ELIGIBILITY OF A NEEM FACILITATOR

Any Society/Trust/Company registered under Section 25 of Companies Act, 1956 / Section 8 of Company Act, 2013 or Relevant Act as amended from time to time /Bodies of Central Government/ Bodies of State Government / Government Institutes and Universities shall be eligible to apply for registration as NEEM Facilitator.

This basically shows how flexible yet responsible the governing bodies are when it comes to increasing the scales of operations.

NEEM Facilitator shall be in the business of training for at least five years or the parent company under which a Section 25 Company /Section 8 of Company Act, 2013 or Relevant Act as amended from time to time, is formed to meet the objective of NEEM shall be in the business of training for at least five years.

NEEM Facilitator 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 as per following:

  • Turnover  25Cr  above: 5000 Trainee capacity per year
  • 15 -25 Crore: 3000 Trainees
  • 5-15 Crore: 1000 Trainee
  • The NEEM Facilitator shall submit an affidavit as per proforma given in Appendix I for registration with AICTE in addition to the submission of online data for the purpose of such
    registration.
  • The Society/Trust/Company registered under Section 25 of Companies Act, 1956/ Section 8 of Company Act, 2013 or Relevant Act as amended from time to time /Bodies of Central Government/ Bodies of State Government seeking registration as NEEM Facilitator shall submit an affidavit in the proforma appended to these Regulations stating that the information submitted by it in the application for registration is correct and if any information submitted by the applicant found incorrect in future, the NEEM Facilitator so registered on the basis of such the information shall be liable for revocation or withdrawal of its registration and also penal and civil action.
  • If any member of Society/Trust/Company registered under Section 25 of Companies Act, 1956/ Section 8 of Company Act, 2013 or as amended from time to time, or Society/Trust/Company registered under Section 25 of Companies Act, 1956/ Section 8 of Company Act, 2013 or as amended from time to time is facing an inquiry including a vigilance inquiry or if there is any criminal investigation/prosecution by police or CBI, then such Society/Trust/Company registered under Section 25 of Companies Act, 1956/ Section 8 of Company Act, 2013 or as amended from time to time, shall not be eligible to apply and seek registration and approval as NEEM Facilitator under these Regulations.

So it is clear that only serious and responsible people are allowed to handle this scheme.

Now let us see what it takes to become a NEEM Trainee

ELIGIBILITY OF A TRAINEE UNDER NEEM

A person registered under this NEEM Regulation is called a Trainee under NEEM.

So we know that NEEM trainee in the official language is deemed to be a Trainee under NEEM.

Age Criterion :
A person seeking training under NEEM shall be at least 16 years of age and not more than 40
years of age as on the date of registration

Education :
A person seeking training under NEEM may 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 Satisfies standards of physical fitness as prescribed by NEEM Facilitator.

Broadly speaking anyone falling between the given age criterion is eligible to be a trainee under NEEM.

Other Points to be considered and be aware of.

NORMS OF CONTRACT FOR IMPARTING TRAINING UNDER NEEM

  • A contract shall be signed between NEEM Facilitator and the NEEM Trainee to capture all terms & conditions which would govern the relationship.
  • The NEEM training shall be deemed to have started from the date of joining of the NEEM Trainee as mentioned in the contract letter as per proforma given in Appendix II.
  • The NEEM contract shall not be either an offer of employment or a guarantee of employment.
  • Any remuneration/stipend paid to a trainee is a consolidated amount not subject to any other
    deduction of payment as applicable in a regular employment.

PERIOD OF TRAINING

  • NEEM training shall be in a registered company/Industry as registered with the NEEM Facilitator.
  • NEEM training shall be for a minimum of 3 months and a maximum of 36 months and the training must be NSQF compliant.
  • The duration of NEEM training shall be determined by the nature of Industry or trade where aNEEM trainee would be engaged in such training and shall be at the sole discretion of NEEM
  • Termination of contract as per the laid down rules. The contract of the training shall expire on the completion of training as mentioned in the contract letter signed between the NEEM trainee and NEEM Facilitator. Either party can terminate the contract by notifying in writing to the other party by giving a notice thirty days in advance. NEEM Facilitator can terminate the Training contract with the NEEM trainee on account of any unlawful behavior on the part of the NEEM trainee or on account of repeated flouting of company/Industry policies or for continuous irregularity in attending to the scheduled training as notified for the NEEM trainee.NEEM trainee can terminate the contract entered into with the NEEM Facilitator where the NEEM Facilitator fails to honor any of the terms of the contract by giving a written notice 30 days in advance to the NEEM Facilitator. The selection of a NEEM trainee does not constitute an employment contract with NEEMA facilitator or the company/Industry where the NEEM trainee is placed for training under the contract.
  • There is more information that still needs to be imparted and explained through our blog. Stay tuned for more reliable information coming from us. The blog article has taken inputs from the gazette publication by the government of India on NEEM Scheme.