With apprenticeships being back in the news again recently and the growth of degree apprenticeships, it is perhaps surprising how few employers ensure they put the correct contracts in place for their apprentices. This can have major consequences for employers if the apprenticeship isn’t working out.
Apprenticeships in the UK can be structured under two different legal frameworks (see below). While both allow individuals to train and gain qualifications while working, they differ significantly in their legal protections and obligations for both employers and apprentices.
Contract of Apprenticeship
A traditional contract of apprenticeship is the older form of apprenticeship contract. It prioritises the apprentice’s training and development over their role as a worker. This means there is greater legal protection for the apprentice, making it harder for an employer to dismiss them. Because of this, there is potential for higher compensation claims because if an employer wrongfully dismisses an apprentice before the end of training, this could be a breach of contract and the apprentice could claim loss of earnings for the whole length of the apprenticeship, which can be costly for the employer.
Apprenticeship Agreement
An apprenticeship agreement treats apprentices more like regular employees while still providing structured training. This means dismissal of the apprentice is easier for reasons such as poor performance or redundancy. The apprentice benefits from entitlement to employment protections like minimum wage, working time regulations and statutory benefits. To be a valid apprenticeship agreement, it must meet specific conditions, including reference to an approved apprenticeship framework or standard.
On a separate but related note, degree apprenticeships are becoming increasingly popular, combining University study with work-based training. These are treated differently to the above two scenarios.
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