This National Apprenticeship Week, the spotlight is on apprenticeships and showcasing how it can be a fantastic way to bring fresh talent into your business.

This will prompt many business owners to consider taking on an apprentice. Apprenticeships can be a huge benefit to a business, but they also come with specific legal requirements. In this blog, we’ll break down what you need to consider from an employment law perspective when hiring an apprentice.

Understanding what an apprentice is

An apprentice is an employee who combines practical on-the-job training with study to gain a recognised qualification. Unlike standard employees, apprentices have additional legal protections, and their employment is typically linked to the successful completion of their training.

Choosing the right apprenticeship agreement

There are two main types of apprenticeship agreements:

a)    Apprenticeship Agreement (under the Apprenticeships, Skills, Children and Learning Act 2009) – This is the most common type and must be in place for an apprentice to be considered an employee. It should outline the training programme and confirm that the apprentice will work towards a recognised qualification; and

b)    Traditional Contract of Apprenticeship – This is an older form of agreement that offers greater protection to the apprentice, making it harder to dismiss them before the end of the contract. For most businesses, an Apprenticeship Agreement is the preferred option as it provides more flexibility.

National minimum wage and working hours

Apprentices must be paid at least the National Minimum Wage for apprentices, which applies if they are under 19 or in the first year of their apprenticeship. After the first year, they must be paid at least the minimum wage for their age group. Current rates are updated annually, so always check the latest figures.

Apprentices typically work at least 30 hours per week, but this can be reduced in certain circumstances. They are also entitled to rest breaks and holiday pay like any other employee.

Employment rights and protections

Apprentices have similar employment rights to regular employees, including:

a)    Protection against unfair dismissal (after two years of service, or immediately in cases of discrimination or whistleblowing);

b)    Protection against discrimination under the Equality Act 2010;

c)    Statutory sick pay, maternity/paternity leave, and other employment benefits.

It’s crucial to ensure that apprentices are treated fairly and that any dismissal is handled correctly to avoid potential claims.

Training and off-the-job learning

Apprenticeships require at least 20% of an apprentice’s working hours to be spent on off-the-job training. This can be delivered by a registered training provider, often in partnership with an employer. Employers must ensure they support apprentices in completing this requirement.

Funding and grants

The government offers financial incentives to businesses that hire apprentices. Depending on the size of your business and the apprentice’s age, you may receive funding to cover some or all of the training costs. Small employers (fewer than 50 employees) may have the apprentice’s training fully funded if they are under 19.

Larger employers with an annual payroll of over £3 million must pay the Apprenticeship Levy, which can be used to fund apprenticeship training.

Ending an apprenticeship

If an apprentice is employed under an Apprenticeship Agreement, they can be dismissed like any other employee, provided it is fair and lawful. However, if they are on a Traditional Contract of Apprenticeship, dismissal can be more difficult, and compensation for wrongful dismissal may be higher.

Key takeaways for employers

• Use an Apprenticeship Agreement rather than a traditional contract.
• Ensure you are paying at least the Apprentice Minimum Wage where applicable.
• Be aware of the 20% off-the-job training requirement.
• Understand your funding options and grants.
• Ensure apprentices are treated fairly and that any dismissal is handled lawfully.

Hiring an apprentice can be an excellent way to grow your workforce and support skill development in your industry. By understanding the legal requirements, you can ensure a smooth and compliant apprenticeship process for both you and your apprentice.

If you need advice on drafting an Apprenticeship Agreement or understanding your legal obligations, feel free to get in touch with Sarah Naylor on 01302 320621 or at sarah.naylor@switalskis.com.