As per case facts, graduate engineer trainees, appointed as apprentices by HPCL, sought permanent absorption as Grade "A" officers after completing their one-year training, arguing HPCL failed to frame an ... absorption policy as mandated by the Apprentices Act, 1961, unlike other public sector undertakings. They also challenged the automatic termination of their apprenticeship contract. The question arose whether apprentices have a legal right to permanent employment or absorption after completing their training under the Apprentices Act, 1961, especially when the employer's contract explicitly states no such obligation. Finally, the court held that the Apprentices Act does not mandate automatic absorption or create a legal right to permanent employment for apprentices. The contract terms and the employer's policy, which provides only for preference in recruitment and not guaranteed absorption, were upheld, finding no merit in the petition for mandatory absorption.