Hiring an apprentice can be tremendously valuable for your business or organisation. Running an apprenticeship programme allows you to train an employee from the ground up, teaching them a trade while they gain a qualification. It can give you access to new ideas and fresh perspectives, help to build a talent pipeline, and solidify your reputation as a great employer of young people.
However, apprenticeships are governed by strict legal and regulatory requirements. In this post, we will answer some of the most common questions and demystify some of the key requirements so that you know exactly what you have to do if you are considering hiring an apprentice.
How long does an apprenticeship need to be?
Apprenticeships are of varying lengths and can last as long as four, five, or six years. However, all apprenticeships must be of at least the minimum length of 12 months.
How much must apprentices be paid?
Apprentices aged 16-18, or aged 19+ and in the first year of their apprenticeship, must be paid at least the legal minimum wage of £6.40 per hour. Apprentices aged 19+ and in the second or subsequent years of their apprenticeship must be paid at least the National Living Wage for their age group.
Employers offering apprenticeships can often access government funding which may cover up to 95% of the total cost of hiring and training an apprentice. In addition, you may be able to get up to £1000 to support additional costs related to the apprenticeship including salary, travel costs, and uniforms.
What employment rights do apprentices have?
Apprentices have all the same employment rights as other employees. This includes the right to a safe working environment, freedom from harassment and discrimination, a contract of employment (we cover this in more detail below), a minimum of 20 days of paid annual leave per year plus statutory bank holidays, and statutory sick pay if they are unwell.
What is off-the-job training?
An apprenticeship is a training scheme that combines on-the-job and off-the-job training. Off-the-job training refers to anything that takes place away from your place of business, most importantly classroom-based learning. Most apprentices will spend around one day per week at college, university, a training centre, or similar.
As an employer, you must support this by enabling your apprentice to undertake this training during their contracted working hours. If essential training takes place outside of their core hours, you will need to give them time off in lieu or pay them overtime accordingly.
Do apprentices need a contract of employment?
Yes. Apprentices are considered employees and must have a contract of employment just like any other employee. For apprentices, this takes the form of something called an Apprenticeship Agreement which outlines the terms and conditions of their employment.
In addition, you and the apprentice will need to cosign an apprenticeship training plan along with the training provider. This outlines the responsibilities and expectations of all parties and agrees the course content as well as confirming the apprentice’s eligibility to take part in the programme.
What about taxes?
Apprentices must pay taxes on all income earned over the individual Personal Allowance threshold (£12,570 at the time of writing.) As their employer, you will need to enrol them in the same Pay-As-You-Earn (PAYE) scheme as your other employees.
What if you need to let an apprentice go?
In rare circumstances, you may need to part ways with an apprentice before the end of their apprenticeship. This can be a necessary redundancy, or because of conduct or performance problems.
According to Peninsula Group, it is possible to make an apprentice redundant (to eliminate their position because it is no longer required) in England and Wales. Apprentices who have less than 6 months or 25% of their apprenticeship remaining can receive government funding support for up to 12 weeks, allowing them to continue their training until they find another job. It is also sometimes possible to make an apprentice redundant and then take them on again under a different apprenticeship agreement in the same company.
Redundancy is stressful for any employee, and for an apprentice, it can have a serious impact on their ability to complete their training. We recommend only taking on an apprentice if you are as sure as it is possible that you can commit to keeping them on for the entire duration of their apprenticeship.
If you think you may need to let an apprentice go due to conduct or performance issues, you will need to follow the same disciplinary procedures as you would for any other employee. This may include informal and formal warnings, performance improvement plans, or additional mandatory training.
According to Law Hive, grounds for dismissal of an apprentice may include gross/serious misconduct, consistent poor conduct such as repeated lateness, and failing to meet the standards required for the role. You must comply with statutory notice periods except in cases of gross misconduct (which typically means actions such as theft, fraud, physical violence, bullying or harassment, serious insubordination, breaches of confidentiality, or coming to work incapacitated due to drugs or alcohol.)
What other responsibilities do you have to your apprentice?
As their employer, you are responsible for ensuring that your apprentice learns the appropriate skills to enable them to eventually do their chosen job independently. This will mean receiving training from more experienced staff as well as having plenty of hands-on opportunities to learn on the job.
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