Member Article

Top ten tips for businesses taking on apprentices

Following Government proposals to create three million apprenticeships by 2020, a growing number of businesses are embracing the benefits of apprentices but what are your legal obligations as an employer?

1. Have an apprenticeship agreement in place Apprentices can have significantly greater legal protection than other workers and have legal rights against all forms of discrimination from day one. It can be difficult to terminate the apprenticeship without facing a significant compensation claim so protect your business by having the appropriate documentation in place.

2. Stick to the prescription These agreements have to comply with the Apprenticeships, Skills, Children and Learning Act (ASCLA 2009) and must follow its prescribed format so take care when drafting these and seek the appropriate advice.

3. Probation, probation Include a probation period which must be satisfied in order for the apprentice to continue with the remaining term agreed.

4. Be studious Stipulate details of college hours and make provision that a failure to maintain college attendance and achieve certain qualifications may lead to dismissal.

5. Review performance Given that apprenticeships are usually for a fixed term, include a performance review at key intervals, including one to take place at the end of the probation period, and detail the grounds for early termination. This clarifies your expectations from the outset.

6. Protect your costs Include provisions stating that in the event of an early termination, the apprentice is liable to reimburse you for any cost of their training not met by the Government. I’d recommend that you adopt a tiered approach, so the amount repayable reduces according to the length of service – otherwise such a provision may be unenforceable. You should also include a clause reserving the right to deduct such monies from the apprentice’s final salary.

7. Have an employment contract in place In addition to an apprenticeship agreement, you should also have an employment contract in place to cover such matters as confidentiality, holiday allowance and sick pay entitlement.

8. Adhere to the minimum wage The National Minimum Wage was increased on 1st October and apprentices are now entitled to £3.40 per hour.

9. Age matters Be aware that Government funding for apprentices is tiered according to age with higher funding available for younger apprentices. Resist the obvious temptation to put an upper age limit on your apprenticeship scheme as this could expose you to an Age Discrimination claim unless you can objectively justify it.

10. Enjoy the benefits Adding apprentices to your workforce has many benefits including reducing your training and recruitment costs, increasing productivity and customer service levels and developing a skilled, motivated and qualified workforce, so enjoy it!

This was posted in Bdaily's Members' News section by Linder Myers Solicitors .