Apprenticeships: Employer's Guide

Apprenticeships combine work with training. Understanding your obligations helps you get the benefits while staying compliant.

What Is an Apprenticeship?

An apprenticeship is:

• A job with training
• Leading to a recognised qualification
• Minimum 12 months duration
• At least 20% off-the-job training
• For employees aged 16+

Modern Apprenticeships

Most current apprenticeships are "modern apprenticeships":

• Standard employment contract applies
• Training agreement with provider
• Funded through apprenticeship system
• Subject to normal employment law (mostly)

Traditional Apprenticeships

Older-style apprenticeships:

• Contract of apprenticeship
• Enhanced dismissal protection
• Must complete training period
• Increasingly rare

Apprenticeship Levels

Level	Equivalent To	Example
Level 2 (Intermediate)	GCSEs	Customer Service
Level 3 (Advanced)	A-Levels	Business Admin
Level 4/5 (Higher)	Foundation Degree	HR Consultant
Level 6/7 (Degree)	Bachelor's/Master's	Chartered Manager

Funding Apprenticeships

Apprenticeship Levy

If your annual pay bill exceeds £3 million:

• Pay 0.5% of pay bill as levy
• Receive allowance of £15,000
• Pay monthly through PAYE
• Funds go to digital account
• Use to pay for training

Levy calculation: Pay bill = All employee earnings subject to Class 1 NI Levy = 0.5% × (Pay bill - £15,000 allowance)

Non-Levy Employers

If pay bill is under £3 million:

• Government pays 95% of training costs
• You pay 5% (co-investment)
• Pay directly to training provider
• Funding bands cap government contribution

100% Funding

Full government funding for:

• Apprentices aged 16-18
• Apprentices aged 19-24 who were in care or have EHC plan
• Employers with fewer than 50 employees (for above categories)

Additional Payments

£1,000 payment to you (and £1,000 to training provider) for hiring:

• 16-18 year old apprentice
• 19-24 year old care leaver or with EHC plan

Apprentice Pay

Apprentice Minimum Wage

Apprentice rate applies if:

• Under 19 years old, OR
• 19+ but in first year of apprenticeship

Current rate (2024): £6.40 per hour

After First Year

Apprentices 19+ in second year onwards:

• Get National Minimum Wage for their age
• 18-20: £8.60/hour
• 21+: £11.44/hour (National Living Wage)

Paying More

You can pay above minimum:

• Attracts better candidates
• Improves retention
• Reflects value of work

Many employers pay full rate for the role.

The Apprenticeship Agreement

Required Contents

Must include:

• Skill, trade, or occupation being trained for
• Name of apprenticeship framework/standard
• Start and expected end date
• Training to be provided
• Qualification to be achieved

Alongside Employment Contract

Apprentice also needs:

• Written statement of employment terms
• All normal contractual terms
• Clear about apprenticeship status

Contract vs Agreement

Employment contract: Job terms, pay, hours, etc. Apprenticeship agreement: Training arrangements, qualification, duration

Both are needed.

Off-the-Job Training

The 20% Requirement

At least 20% of paid working hours must be off-the-job training:

• Learning directly relevant to apprenticeship
• During normal working hours
• Paid at normal rate

What Counts

• Formal training courses
• Online learning
• Shadowing
• Mentoring
• Industry visits
• Writing assignments

What Doesn't Count

• Work that would be done anyway
• Training for non-apprenticeship skills
• English and maths (unless part of standard)
• Progress reviews

Calculating 20%

Example: Apprentice works 37.5 hours/week 20% = 7.5 hours/week for training Over 12 months = 390 hours

Employing Young Apprentices

16-17 Year Olds

Special rules apply:

• Maximum 8 hours/day, 40 hours/week
• No night work (10pm-6am usually)
• 12 hours rest between shifts
• 2 consecutive days off per week
• 30 minute break if working 4.5+ hours

Risk Assessments

Must conduct specific risk assessment for young workers:

• Before they start
• Considering inexperience
• Reviewing regularly

Parental Consent

Not legally required but good practice to:

• Inform parents of arrangements
• Provide contact details
• Keep them updated

Managing Apprentices

Supporting Learning

• Allocate mentor/supervisor
• Allow time for study
• Provide learning resources
• Regular progress reviews
• Liaise with training provider

Performance Issues

If apprentice is struggling:

• Additional support first
• Work with training provider
• Consider if role is suitable
• Follow normal performance process

Conduct Issues

Normal disciplinary procedures apply:

• Investigation
• Hearing
• Right to be accompanied
• Right of appeal

Absence

• Same sickness absence rules
• May extend apprenticeship if significant absence
• Liaise with training provider

End of Apprenticeship

Successful Completion

When apprentice achieves standard:

• End-point assessment
• Qualification awarded
• Decide on ongoing employment

Offering Permanent Role

No obligation to offer permanent role, but:

• Often the intention
• Good for retention
• Uses your investment

If Not Successful

If apprentice doesn't complete:

• May need to repay some funding
• Consider reasons
• Support to complete if possible
• Standard employment ending if not

Dismissing Apprentices

Modern Apprenticeships

Standard unfair dismissal rules apply:

• 2 years' service for full protection
• Fair reason required
• Fair procedure required
• Can dismiss for capability or conduct

Traditional Apprenticeships

Enhanced protection:

• Can only dismiss for serious misconduct
• Or if business closes completely
• May have to pay to end of training
• Seek legal advice before dismissing

Which Do You Have?

Check the wording of your agreement:

• "Contract of apprenticeship" = traditional (enhanced protection)
• "Apprenticeship agreement" = modern (standard rules)

Redundancy and Apprentices

Can You Make Apprentice Redundant?

For modern apprenticeships:

• Same rules as other employees
• After 2 years, statutory redundancy pay
• Fair selection required

For traditional apprenticeships:

• May not be able to make redundant
• May have to complete training period
• Or pay significant damages

Redundancy Pay

If eligible:

• Same calculation as other employees
• But consider if they've completed apprenticeship
• Low weekly pay means lower payments

Benefits of Apprenticeships

For Employer

• Develop skills you need
• Government-funded training
• Loyal, trained workforce
• Bring fresh perspectives
• Meet skills gaps

For Apprentice

• Earn while learning
• Gain qualification
• No student debt
• Real work experience
• Career pathway

Apprenticeship Checklist

Before Starting

• Identify role and apprenticeship standard
• Choose training provider
• Understand funding (levy or co-investment)
• Prepare employment contract
• Prepare apprenticeship agreement
• Identify mentor/supervisor
• Plan off-the-job training
• Risk assess (if under 18)

During Apprenticeship

• Ensure 20% off-the-job training
• Regular progress reviews
• Liaise with training provider
• Support learning
• Pay correctly (including training time)
• Record training provided

At End

• Support end-point assessment
• Decide on ongoing employment
• Issue certificate/reference
• Review apprenticeship programme