Reducing risk when taking on an apprentice by Pathway Group
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This document discusses the benefits and proper employment of apprentices. It notes that most businesses find apprentices improve quality and recommend them. However, employers must commit to training. Using an apprenticeship agreement rather than contract prevents additional legal risks. A contract could require continued training even if redundant and make dismissal for misconduct difficult. It may also result in larger compensation payments. The document advises setting up a compliant apprenticeship agreement to gain the benefits of apprentices without increased legal risks.
Reducing risk when taking on an apprentice by Pathway Group
- 2. Apprenticeships’ popularity are growing • A survey by the Department for Business, Innovation and Skills found that 72% of businesses said an apprentice improved their product or service quality. • 81% said they would recommend them to others.
- 3. Taking on an apprentice is a commitment Employers commit to: a new member of staff their training and development • Depending on which basis you employ the apprentice, this can affect their rights.
- 4. Taking on an apprentice is a commitment In short, when employing an apprentice, employers need to avoid setting up a contract by default conferring additional rights on their trainees.
- 5. So what’s the best way to employ an apprentice? • Apprenticeship agreements were established in the Apprenticeships, Skills, Children and Learning Act 2009. • An arrangement, agreement or contract cannot be an apprenticeship agreement unless it meets specific requirements.
- 6. So what’s the best way to employ an apprentice? • For example, it must be in writing and must state it is entered into in connection with a qualifying apprenticeship. • This approach is the simplest and most effective way to employ an apprentice.
- 7. What do I need to avoid when employing an apprentice? • Often employers will try to use their standard contracts and change the job title or heading to “apprentice”. • This meets the requirement for the agreement to be in writing, but fails to include all the required clauses, unintentionally creating an apprenticeship contract.
- 8. What’s the problem with an apprenticeship contract? The key difference between an apprenticeship contract and an apprenticeship agreement is that the contract puts the ‘training’ at the centre of contract and places the onus on the employer to deliver that training.
- 9. What’s the problem with an apprenticeship contract? • Apprentices who are employed under an apprenticeship agreement can be treated like ordinary employees and the normal unfair dismissal rules apply. • Apprentices who have apprenticeship contracts have additional rights.
- 10. What’s the problem with an apprenticeship contract? • If the apprentice breaches the contract, this does not necessarily mean the employer can stop the training. • They can only be dismissed fairly for misconduct if they are effectively unteachable.
- 11. What’s the problem with an apprenticeship contract? • An apprenticeship contract cannot be terminated because of redundancy unless the employer’s business closes or fundamentally changes. • It cannot simply be that the need for apprentices in the business has reduced, as with ordinary employees.
- 12. What’s the problem with an apprenticeship contract? If ‘unfairly’ dismissed, it is likely the apprentice will be awarded more compensation to reflect the loss of earnings under the apprenticeship contract plus the loss of potential future earnings.
- 13. By ensuring you set up an apprenticeship agreement correctly, you can enjoy the many benefits of employing an apprentice without the risks. Tweet @SafarazAli Connect with Safaraz Ali Twitter: @pathwaygroup LinkedIn: The Pathway Group (Workforce Solutions)