From Contracts to Compliance - Best Ways to Manage Interns and Trainees

Apprentice, intern, trainee, no matter what you call them, they are one of the most mismanaged groups at the workplace. Maybe it’s because they are not exactly employees, so many companies are not sure how to manage them. Senior HR Consultant, Dr. Sev Anand shared a guide on how the HR can properly manage trainees at workplace.

How to engage trainees

First things first, we have to understand what “trainee” means. Trainee is defined as “an individual engaged by an organisation or an individual for the purpose of guiding and preparing them to assume a specific job role and responsibilities.”

Under a mentor, trainees undergo On The Job Training to learn specific and generic work skills as well as adjusting to work cultures. They also learn about work and organisational values.

The legal compliance in the appointment of trainees

As with any other hiring process, we must first know the basic legal requirement in Malaysia so we can draft contracts that will ensure both parties are safe and secure. In Malaysia, there are three things to consider when you draft a contract for trainees.

1. Age of hiring

The Children and Young Persons Act 1966 says that any individual below 18 years old is defined as “Young Person”. They are prohibited from being hired in the private sector as “employees”.

But organisations can hire them as “Trainees” instead, so you must take note that since they are below the requirement age, they are not legally bound to be SOCSO contributor. This means they are also not bound for any SOCSO claim if they are involved in accidents. Also, trainees are not entitled for any minimum benefits as outlined in the Employment Act 1955.

2. Payment in lieu of training

If companies offer allowances instead of salary, anyone engaged under the term “trainee” will be excluded from the scope of Employment Act 1955, SOCSO contributions and other statutory deductions.

There are companies who hire individuals as “management trainees” but offer them a fixed basic salary. As such, they are actually defined as “employees” legally but not technically as they are undergoing a period of job training.

3. Welfare and protection

As an HR practitioner, you must prepare for any pitfalls or impact that may affect the organisation since trainees are not under the protection of SOCSO. Such unwanted burden and attention must be avoided by taking the right measures.

How to draft contracts for trainees

You must draft a proper and detailed training or apprentice contract that states the important details about these aspects:

a. Scope of training

Here is where you state the nature of their training, the details of role and tasks to be learned, training location, the training schedule and who will be their mentor, and identifying assessment tools to measure and record feedback from mentor and trainee.

b. Scope of coverage

Considering their welfare and protection, you can develop certain privileges as part of benefits for trainees. It is important to purchase PA (Personal Accident) and Insurance policy inclusive of medical card that covers them during their training period. The PA scheme will assist HR department to help trainees who are affected by work-related accidents.

c. Scope of conduct

Trainees should also have their own code of conduct which includes attendance requirement, attire and general appearance at workplace, ethical and professional behaviour.

d. Scope of compliance

Trainees must be informed in writing detailed information about any compliance and adherence to rules and regulations at workplace. The scope includes safety compliance, quality standard compliance, disciplinary compliance and compliance to general guidelines set at workplace.

Recommended suggestions

As HR practitioners, there are some terms and actions you must avoid, here are some tips to guide you in managing trainees:

1. Develop Training Contract which must not have any elements of Employment Contract. Here are the terms you should avoid

   1. Training Schedule: Do not state working hours

   2. Scope of Training: Avoid stating it as Job Description

   3. Training Privileges: Do not state Benefits and Entitlement

   4. Trainee Code of Conduct: Avoid stating Rules and Regulations

2. Issue Training Voucher as proof of payment instead of pay slip as pay slip are given for payment made as wages.

   1. Develop Trainee ID tag: Avoid issuing staff ID tag

   2. Conduct Trainee Orientation program: For trainees to be familiarise with the organisation’s culture and values

   3. Develop Trainees’ pocket guide book for easy user guide reference on the do’s and don’ts of trainee during their training period.

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