Apprentices Act, 1961
5. NOVATION
OF CONTRACT OF APPRENTICESHIP. -
Where an
employer with whom a contract of apprenticeship has been entered into, is for
any reason unable to fulfill his obligations under the contract and with the
approval of the Apprenticeship Adviser it is agreed between the employer, the
apprentice or his guardian and any other employer that the apprentice shall be
engaged as an apprentice under the other employer for the unexpired portion of
the period of apprenticeship training, the agreement, on registration with the
Apprenticeship Adviser, shall be deemed to be the contract of apprenticeship
between the apprentice or his guardian and the other employer, and on and from
the date of such registration, the contract of apprenticeship with the first
employer shall terminate and no obligation under that contract shall be
enforceable at the instance of any party to the contract against the other party
thereto.