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How to claim your internship stipend under the Apprentices Act

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Tired of working for 'exposure'? Learn how to use the Apprentices Act and UGC/AICTE rules to claim your unpaid stipend and fight unfair internship practices in India.

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11 min read
#unpaid internship laws india#Apprentices Act 1961 stipend#minimum stipend for interns india 2026#UGC internship guidelines#AICTE internship policy#labour laws for students india#claim unpaid stipend#startup internship exploitation

The Hook

You have spent the last three months working 10-hour days for a "fast-growing startup," doing everything from coding their backend to making coffee. Your offer letter promised a ₹10,000 monthly stipend, but every time you ask about it, the founder talks about "hustle culture" and how the "exposure" you are getting is worth more than any salary. Now, they are ghosting your emails and refusing to give you a completion certificate unless you work an extra month for free. This is not just a bad first job; it is a violation of your legal rights. In India, an internship is not a license for a company to get free labour. Whether you are an engineering student or a liberal arts major, the law has specific protections to ensure you do not get exploited under the guise of learning.

What the law actually says

India does not have a single "Internship Act," but your rights are protected under a patchwork of labour laws and educational regulations. The most powerful tool in your kit is the Apprentices Act, 1961. Under Section 13 of this Act, every apprentice (which includes many categories of interns) is entitled to a minimum stipend. The government sets these rates periodically; for instance, as per the 2019 amendment to the Apprenticeship Rules, the minimum stipend for graduate apprentices is ₹9,000 per month, and for diploma holders, it is ₹8,000. If a company is registered under the National Apprenticeship Promotion Scheme (NAPS), they are legally bound to pay you through the portal.

Then there is the Code on Wages, 2019 (which subsumes the Minimum Wages Act). While companies often argue that interns are not "workers," the reality is different if you are performing the core duties of a regular employee. If you are not learning but simply filling a vacancy that would otherwise require a paid staff member, the courts can classify you as a worker entitled to minimum wages. The Supreme Court in Bangalore Water Supply & Sewerage Board v. A. Rajappa (1978) established a wide definition of "industry" and "workman," which has been used to protect trainees from exploitation.

For students, the UGC (Redressal of Grievances of Students) Regulations, 2023 and the AICTE Internship Policy are crucial. The AICTE mandates that all technical students must undergo internships, and while it "urges" companies to pay, it also provides a grievance mechanism if a company violates the terms of the internship agreement. If your college forced you into an unpaid role or the company is withholding your certificate illegally, these bodies can intervene. Furthermore, Article 23 of the Constitution of India prohibits "begar" (forced labour without payment). If you are being forced to work without the promised pay, it is a constitutional violation.

Step-by-step playbook

1. The Evidence Audit

Before you confront your boss, gather your digital paper trail. You need proof that a contract existed and that you fulfilled your end of the bargain.

  • What to collect: Your offer letter (even an email or WhatsApp confirmation counts), your attendance logs, copies of the work you submitted, and any communication where the stipend amount was mentioned.
  • Timeline: 1 day.
  • If it fails: If you have no written proof, start an email thread now. Send a "Summary of my work this month" email and ask for a timeline on the stipend. Their reply (or lack thereof) is evidence.

2. Verify the Company’s Status

Check if the company is registered on the National Apprenticeship Training Scheme (NATS) portal or the NAPS portal. If they are, they are under the direct supervision of the Ministry of Skill Development and Entrepreneurship. You can also File an RTI online to the Regional Directorate of Skill Development and Entrepreneurship (RDSDE) to ask if the company has filed its mandatory apprenticeship returns.

  • What to do: Search for the company’s GSTIN or name on the portals.
  • Timeline: 2 hours.

3. The "Professional" Nudge

Send a formal email to the HR and your supervisor. Do not be aggressive yet; be "confused."

  • Script: "I am writing to follow up on the stipend for the period of [Date] to [Date]. As per my offer letter dated [Date], the amount of ₹[Amount] was due on [Due Date]. Could you please update me on the status of the transfer?"
  • Timeline: Wait 3 working days for a response.

4. The Formal Grievance (University Route)

If you are a student and the internship was part of your curriculum, your college is legally responsible for your welfare.

  • What to do: File a formal complaint with your college’s Student Grievance Redressal Committee (SGRC) under the UGC 2023 Regulations. If the college doesn't act, escalate it to the UGC e-Samadhaan portal.
  • Timeline: 15 days for the SGRC to respond.
  • What to bring: Your internship agreement and proof of non-payment.

5. Escalation to the Labour Commissioner

If the professional nudge fails and you are no longer a student (or the college won't help), you can approach the Office of the Labour Commissioner in your district.

  • What to do: File a complaint for "non-payment of dues." You don't necessarily need a lawyer for this. The Labour Inspector has the power to summon the employer.
  • Expected Timeline: 30–90 days for a hearing.
  • If it fails: You can file a claim under the Payment of Wages Act (Section 15) if you can prove you were treated as a de facto employee.

6. The Legal Notice

If the amount is significant (e.g., 3 months of unpaid stipend), hire a lawyer to send a formal legal notice. This often scares startups into paying because they don't want the hassle of a civil suit or a BNS filing for cheating under Section 318 of the Bharatiya Nyaya Sanhita, 2023.

  • Timeline: 15 days for them to reply to the notice.
  • Note: If the refusal to pay is accompanied by any form of harassment, refer to the POSH at workplace and college playbook for additional protection.

If the company is a complete fraud and you suspect they have done this to dozens of students, you may need to escalate further. How to file an FIR (and what to do if police refuse) provides the steps to report criminal breach of trust. Always remember to Browse all civic-action playbooks for more ways to hold institutions accountable.

Where it usually breaks

Even with the law on your side, the "system" has plenty of cracks that companies use to dodge payments. Here is how to navigate the most common roadblocks:

1. The "Learning Agreement" Trap Many startups avoid the word "Contract" or "Apprenticeship." They make you sign a "Volunteer Agreement" or a "Learning MOU" that explicitly says you won't be paid.

  • The Workaround: Labels don't change the law. If you are performing tasks that contribute to the company's revenue (coding, sales, data entry), you are a "worker" or "apprentice" by function. If they refuse to pay based on a "volunteer" clause, remind them via email that under the Apprentices Act, 1961, any person undergoing training in a designated trade is entitled to a stipend, regardless of what the internal document is called.

2. The "TPO Gaslighting" Your college Training and Placement Office (TPO) might tell you to "keep quiet" because complaining might ruin the college’s relationship with the recruiter.

  • The Workaround: Don't rely solely on the TPO. If the company is registered under the National Apprenticeship Training Scheme (NATS), you can bypass the college and complain directly on the NATS portal. If your college is part of the problem, file a formal grievance under the UGC (Redressal of Grievances of Students) Regulations, 2023. Colleges are legally bound to have a Student Grievance Redressal Committee (SGRC).

3. The "Portal is Down" Excuse Companies often claim they tried to process your stipend but the NAPS/NATS portal was "glitching."

  • The Workaround: Stipend payment is the company's responsibility, not the portal's. If the portal is down, they are legally allowed to pay you via NEFT/IMPS and claim reimbursement from the government later. Ask for a screenshot of the "error" and tell them you will include it in your report to the Regional Directorate of Skill Development and Entrepreneurship (RDSDE). Usually, the "glitch" disappears once you mention the regulator.

4. The Ghosting Startup The founder stops picking up calls and blocks you on LinkedIn.

  • The Workaround: Send a formal Demand Notice via Registered Post AD (Acknowledgement Due) to their registered office address (find this on the MCA 21 portal). Physical mail carries more legal weight than a WhatsApp message and proves they received your demand.

Templates & scripts

Copy, fill in the [highlighted] bits, and send.

1. The "Firm but Polite" Email (First Warning)

Subject: Regarding pending stipend for [Month, Year] – [Your Name]

Dear [Manager's Name],

I am writing to follow up on my internship stipend for the period of [Start Date] to [End Date]. As per my offer letter dated [Date], a monthly stipend of ₹[Amount] was agreed upon.

To date, I have not received the payment for [Number of months]. As an intern/apprentice, I am entitled to this stipend under the Apprentices Act, 1961 (Section 13).

I have completed all assigned tasks, including [mention 1-2 major tasks]. Please let me know the status of the transfer by [Date, usually 3 days away]. I would prefer to resolve this internally before seeking assistance from the [NATS/NAPS/Labour Commissioner] portal.

Best regards, [Your Name] [Phone Number]

2. Formal Demand Notice (For Registered Post)

To, The Director/HR Manager, [Company Name], [Registered Address]

Subject: Legal Notice for non-payment of stipend and withholding of certificate.

Sir/Madam,

I served as an intern at [Company Name] from [Date] to [Date]. Despite fulfilling my duties, the company has failed to pay the total stipend amounting to ₹[Total Amount].

This is a violation of the Apprentices Act, 1961 and the Code on Wages, 2019. Furthermore, withholding my completion certificate is a violation of the AICTE Internship Policy [if technical] / UGC Regulations.

Take notice that if the outstanding amount of ₹[Amount] is not credited to my account [Account Details] within 7 days of receipt of this notice, I shall be constrained to initiate formal proceedings before the Regional Labour Commissioner and the Apprenticeship Advisor under Section 30 of the Apprentices Act, which carries penalties for the employer.

[Your Signature] [Date]

3. Script for calling the Helpline (1800-11-22-55 - NATS or local Labour Dept)

"Hello, my name is [Name]. I am a student at [College Name]. I completed a [Number] month internship at [Company Name] in [City]. They are refusing to pay my promised stipend of ₹[Amount] and are ghosting my emails. I want to know the procedure to file a formal complaint against their establishment ID for violation of the Apprentices Act."

Frequently Asked Questions

1. Can I claim a stipend if I don't have a formal signed contract?

Yes. In India, an "agreement" can be established through an offer email, a WhatsApp chat, or even your attendance records and work submissions. If you can prove you worked and they promised pay, the law (Section 13 of the Apprentices Act) applies. Keep screenshots of everything.

2. What if the company says they are a "bootstrapped startup" and have no money?

Financial struggle is not a legal excuse for "begar" (forced labour). Under **Article 23 of the Constitution**, you cannot be made to work without pay. If they are registered as a company, they are liable. If they are on NAPS, the government even subsidises 25% of your stipend (up to ₹1,500), so they have even less of an excuse.

3. Can they withhold my internship certificate if I complain?

No. If you have completed the duration and the work, the certificate is your right. Under **Section 11 of the Apprentices Act**, the employer is obligated to provide training and certification. If they withhold it as "punishment," you can report them to your University’s Grievance Cell or the RDSDE.

4. Is there a fee to file a complaint with the Labour Commissioner?

Filing a complaint with the **Regional Labour Commissioner (Central or State)** is generally free for workers and interns. You don't necessarily need a lawyer for the initial filing; you can submit a written complaint on plain paper or via the **Samadhan portal** (samadhan.labour.gov.in).

5. Does the law protect "virtual" or "work-from-home" interns?

Yes. The **Apprentices Act** and the **Code on Wages** do not differentiate between physical and virtual workplaces. As long as the company is based in India and you are performing tasks for them, the same rules for minimum stipend and working hours apply.

6. How long does it take to get the money after complaining?

Once you file a complaint with the **Apprenticeship Advisor** or Labour Commissioner, they usually issue a notice to the company within 15–30 days. Most companies pay up the moment they receive a government notice to avoid being blacklisted from future government tenders or recruitment portals.

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How to claim unpaid internship stipend in India · HowToHelp