I wonder what employers need to know when taking on an apprentice?

Apprenticeships can be an effective way for employers to recruit and train up talented individuals for their organisation. However, the rules governing apprenticeships are regularly updated, and employers who breach these rules risk the Government taking action to recover funding the employer has received through the apprenticeship levy or Government co-investment.

This article looks at some of the most significant developments in apprenticeships and what employers need to know when taking on apprentices.

What is an approved English apprenticeship?

An approved English apprenticeship is an employment arrangement governed by the Apprenticeship, Skills, Children and Learning Act 2009, where the apprentice does work in an occupation for which an approved apprenticeship standard has been published. As of August 2020, all new apprenticeships entered into in England must be on an apprenticeship standard, and all current approved standards can be found on the Institute for Apprenticeships and Technical Education website. The apprenticeship must take place under an approved English apprenticeship agreement, and must meet additional criteria such as:

• a practical period of at least 12 months;
• at least 20% of the apprentice’s normal working hours are spent in off-the-job training;
• an end point assessment to evaluate if the apprentice has achieved the approved apprenticeship standard.

What is a contract of apprenticeship?

A contract of apprenticeship is the oldest form of apprenticeship agreement. It has few formal requirements and is governed by the common law. An apprentice engaged on a contract of apprenticeship will have enhanced rights which make them more difficult and costly to dismiss, such as the right to:

• not be dismissed for misconduct unless it is so extreme as to render the apprentice wholly unteachable;
• not be made redundant unless there is a closure or fundamental change of the business;
• receive enhanced damages for early termination of their contract, which may include pay for the remainder of their apprenticeship as well as payment for the loss of opportunity for not being able to complete their qualification.

If the contract between the employer and the apprentice does not meet the requirements of an approved English apprenticeship agreement, the employer may have inadvertently created a contract of apprenticeship, which will give the apprentice these enhanced rights.

What must be included in an approved English apprenticeship agreement?

Regulations published by the Secretary of State for Education set out the criteria that must be included in an approved English apprenticeship agreement. The agreement must include:

• the apprentice’s details (name, place of work);
• the apprenticeship standard and level;
• the start and end date of the apprenticeship (these dates include the end-point assessment);
• the start and end date of the practical period (this is the part of the apprenticeship where evidenced learning is delivered; this does not include the end point assessment);
• the duration of the practical period; and
• the amount of time the apprentice will spend in off-the-job training.

It must be ensured that the employer and the apprentice sign the approved English apprenticeship agreement on or before day one of the apprenticeship. Failing to have a valid, signed agreement by day one of the apprenticeship may result in an old-fashioned contract of apprenticeship being created giving the apprentice enhanced rights as mentioned above.

How long are apprenticeships?

The length of an apprenticeship varies and can be anywhere from one to five years. Approved English apprenticeships generally consist of a practical period and an end point assessment. The practical period must be at least 12 months and is the period over which the apprentice is expected to attend work and complete off-the-job training. The length of the apprenticeship as a whole includes both the practical period and the end point assessment.

What rights do apprentices have?

Apprentices engaged under an approved English apprenticeship agreement generally have the same rights as most of an employer’s other employees, including:

• sick pay;
• paid annual leave; and
• paid family leave.

Employers should also offer apprentices the same benefits as other employees working at similar grades or in similar roles.

Off-the-job training

All apprentices must complete a certain amount of off-the-job training as part of their apprenticeship. Off-the-job training must be carried out during the apprentice’s normal working hours and may include:

• lectures, in person or online;
• simulation exercises;
• shadowing and mentoring; and
• time spent working on assignments.

As of 1^st August 2022, the minimum off-the-job training for a full-time apprentice working 30 hours a week is 20% or an average of six hours per week. This minimum applies even where the apprentice is contracted to work more than 30 hours per week.

Employers should note however, that 20% off-the-job training is only the minimum set by the Government which all apprenticeships must meet to be eligible for Government funding. In practice, some approved apprenticeship standards may require more than the minimum hours, and some individual apprentices may require additional training to achieve the required standard.

How much do I need to pay an apprenticeship?

As of April 2024, the minimum wage for an apprentice is £6.40 per hour. Apprentices who are over 19 and have completed the first year of their apprenticeship are then entitled to be paid the national minimum wage for their age.

The minimum wage rates usually increase in April each year.

How do I get funding for the apprenticeship?

Employers may be able to receive help from the Government to fund an apprenticeship. If an employer pays the apprenticeship levy, they will be able to access funds from the levy to pay for the apprenticeship course. If an employer does not pay the levy, they will pay 5% of the course costs and the Government will pay the training 95% up to the funding band maximum.

Apprenticeships can be a valuable resource for employers looking to expand and upskill their workforce. However, failing to comply with the Apprenticeship Funding Rules or not engaging an apprentice on a compliant apprenticeship agreement can be very costly for employers. If you are considering taking on an apprentice, we would recommend that you contact our Employment Team today by emailing employment@warnergoodman.co.uk or call 023 8071 7717 to draft a compliant English apprenticeship agreement.