(1) The contract of apprenticeship shall terminate on the expiry of the period of apprenticeship training.
     (2) Either party to a contract of apprenticeship may make an application to the Apprenticeship Adviser for the termination of the contract, and when such application is made, shall send by post a copy thereof to the other party to the contract.
     (3) After considering the contents of the application and the objections, if any, filed by the other party, the Apprenticeship Adviser may, by order in writing, terminate the contract if he is satisfied that the parties to the contract or any of them have or has failed to carry out the terms and conditions of the contract and that it is desirable in the interests of the parties or any of them to terminate the same:
     Provided that where a contract is terminated--
         (a) for failure on the part of the employer to carry out the terms and conditions of the contract, the employer shall pay to the apprentice such compensation as may be prescribed;
         (b) for such failure on the part of the apprentice, the apprentice or his guardian shall refund to the employer as cost of training such amount as may be determined by the Apprenticeship Adviser.
     ¹[(4) Notwithstanding anything contained in any other provision of this Act, where a contract of apprenticeship has been terminated by the Apprenticeship Adviser before the expiry of the period of apprenticeship training and a new contract of apprenticeship is being entered into with a new employer, the Apprenticeship Adviser may, if he is satisfied that the contract of apprenticeship with the previous employer could not be completed because of any lapse on the part of the previous employer, permit the period of apprenticeship training already undergone by the apprentice with his previous employer to be included in the period of apprenticeship training to be undertaken with the new employer.]
                                                    STATE AMENDMENT
    Maharashtra.
    In section 7 of the principal Act, in sub-section (3), for the existing proviso, the following proviso shall be substituted, namely:--
    Provided that, where a contract is terminated--
    (a) for failure on the part of the employer to carry out the terms and conditions of the contract, the employer shall pay to the apprentice one month's stipend for which he is entitled as a compensation;
    (b) for such failure on the part of the apprentice, the apprentice or his guardian shall refund to the employer as cost of training one month's stipend for which he is entitled.--.
    [Vide Maharashtra Act 17 of 2018, s. 3].
    Rajasthan
     Amendment of section 7, Central Act No. 52 of 1961.--For the existing proviso to sub-section (3) of section 7 of the principal Act, the following shall be substituted, namely:--
    Provided that where a contract is terminated-
        (a) for failure on the part of the employer to carry out the terms and conditions of the contract, the employer shall pay to the apprentice such compensation as may be determined by the State Apprenticeship Adviser;-
        (b) for such failure on the part of the apprentice, the apprentice shall refund to the employer as cost of training, such amount as may be determined by the State Apprenticeship Adviser.-
    [Vide Rajasthan Act 2 of 2015, s. 3]