Apprenticeship Contracts and Agreements
Apprenticeship agreements have special legal status. Learn about the differences between apprenticeship contracts and employment contracts.
Apprenticeships combine work with study toward a qualification. The legal framework depends on which type of agreement is used.
Types of Apprenticeship Agreement
Apprenticeship Agreement (Modern)
Most apprenticeships since 2012 use an apprenticeship agreement under the Apprenticeships, Skills, Children and Learning Act 2009.
Key features:
- Apprentice is treated as an employee
- Has all normal employment rights
- Fixed-term or open-ended
- Can be terminated following normal employment law
Contract of Apprenticeship (Traditional)
Rarely used today, but offers greater protection:
- Requires completion of apprenticeship
- Very difficult to terminate early
- High compensation if terminated (potential damages for lost career)
- Still exists for some trades
Minimum Requirements
Apprenticeship agreements must include:
- Parties - employer and apprentice names
- Duration - minimum 12 months
- Training - qualification being studied
- Standard - apprenticeship standard or framework
- Hours - including time for training (minimum 30 hours/week usually)
- Pay - at least the apprentice minimum wage
Apprentice Minimum Wage
| Situation | Rate (April 2024) |
|---|---|
| Apprentice under 19 | £6.40/hour |
| Apprentice 19+ in first year | £6.40/hour |
| Apprentice 19+ after first year | Age-appropriate NMW |
After the first year of the apprenticeship, if the apprentice is 19 or older, they must be paid at least the National Minimum Wage for their age.
Employment Rights
Apprentices under an apprenticeship agreement have the same rights as employees:
- Holiday - 5.6 weeks minimum
- Sick pay - SSP if eligible
- Rest breaks - same as other workers
- Unfair dismissal - after 2 years' service
- Redundancy pay - after 2 years' service
- Discrimination protection - from day one
Training Requirements
Employers must:
- Allow off-the-job training (minimum 20% of working hours)
- Pay for training time
- Support achievement of the qualification
- Provide a suitable mentor
- Allow time for assessments
Termination
Apprenticeship Agreement
Can be terminated for:
- Gross misconduct
- Redundancy (genuine)
- Capability issues
- End of fixed term
Follow the same process as for other employees.
Contract of Apprenticeship
Much harder to terminate:
- May need to allow completion
- Damages can include lost earnings for entire career in the trade
- Usually requires serious misconduct or agreement from apprentice
Probationary Period
Many apprenticeship agreements include a probationary period (typically 3-6 months) during which either party can end the arrangement with shorter notice.
This allows:
- Assessment of suitability
- Checking the apprenticeship is right for both parties
- Easier exit if it's not working
After Completion
After completing the apprenticeship:
- The agreement ends automatically
- No obligation to offer permanent employment
- Good practice to discuss future opportunities early
- Consider notice requirements if continuing employment
Related answers
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Frequently Asked Questions
- Is an apprentice an employee?
- Most modern apprentices are employees under an 'apprenticeship agreement' and have the same rights as other employees. Traditional 'contracts of apprenticeship' have additional protections but are now rare.
- What is the minimum wage for apprentices?
- Apprentices aged under 19, or in their first year, receive the apprentice rate (£6.40/hour from April 2024). After the first year, if aged 19+, they're entitled to the rate for their age.
- Can you dismiss an apprentice?
- Yes, apprentices can be dismissed for the same reasons as other employees. However, traditional apprenticeship contracts may require the apprenticeship to complete, making dismissal more difficult and costly.