National Apprenticeship Week – A glance at the Apprenticeship Agreement

Friday 15 March 2013

For those of you who do not already know, this week is National Apprenticeship Week. This year is the sixth annual event and each year it increases in popularity .

Apprenticeships: You’re Fired!

Subject to compliance with specified conditions, new legislation now allows employers to engage in contracts of service with apprentices, rather than contracts of apprenticeship.  This has a significant impact for employers thinking of taking on an apprentice.

Although on the surface many apprentices may be satisfied with a more generous age related rate of pay under the new contract of service regime, it seems they will be losing out on the protection and heavy burdens associated with dismissing apprentices under the old common law regime.

The Old Law

Under the old law, if contracts of apprenticeship were terminated early, it meant potentially severe penalties for:

• breach of contract;
• compensation for loss of wages;
• compensation for loss of training opportunity;
• compensation for loss of status on termination.

The New Law

However the introduction of the Apprenticeships, Skills, Children and Learning Act 2009  provides an employer with the opportunity to take apprentices on under special apprenticeship agreements . These agreements dilute the special status and rights of apprentices to that of ordinary employees with a greater emphasis on performance rather than the traditional focus on training.

The changes will balance out the issues concerning unruly or badly behaved apprentices and the possibilities of removing them from an apprenticeship scheme without the issue of potentially crippling claims.

If you are thinking of taking an apprentice on, it is essential the contracts are drafted correctly to ensure the requirements of the legislation are met, including the basic terms of employment required under s.1 of the Employment Rights Act 1996  plus a statement as to the trade and skill for which the apprentice is to be trained, to make it a contract of service and to avoid getting caught by the old common law regime.

The government’s aim is to make apprenticeships seem more attractive to employers and young people, investing £1.4 billion in funds for training and incentives.  A change in legislation is just another small step in a bid to make apprenticeships more accessible within the UK.