National Apprenticeship week: What you need to know

National Apprenticeship Week is an opportunity to celebrate the impact apprenticeships can have for both individuals and the businesses that take them on. It runs from the 10th to 16th February 2025, and events have been ongoing across the UK to spread the message. This will be the 18th annual celebration of apprenticeships and the contributions they make to businesses and communities.

For businesses trying to develop their workforce, they may look to apprentices as a potential opportunity. All schemes have accompanying restrictions, and it is important for employers to be fully aware of the legal framework.

Jeanine Borg, Solicitor at ARAG Law, explains what factors and legal obligations employers need to consider regarding apprenticeship schemes.

What is an apprenticeship?

An apprenticeship is an agreement between an individual and an employer where work will be provided for the employer in return for training to achieve a skill/qualification. These agreements benefit both parties as it allows employers to cover skill shortages within their business, while the individuals get the chance to develop and hone their skills, usually combined with time off to attend training through a college or training establishment. 

What is the relevant law relating to apprenticeships?

There are 3 types of apprenticeship agreements:

Contract of Apprenticeship: This is the oldest type of apprenticeship agreement, governed by common law in England, Wales, and Scotland. Apprentices under this contract enjoy enhanced protection against dismissal, making it challenging to terminate their employment. Dismissal is typically justified only in cases of serious gross misconduct or if the apprentice is deemed unteachable. Additionally, apprentices under a common law contract cannot be dismissed due to redundancy unless the business closes or undergoes a fundamental change in its nature.

Apprenticeship Agreement: This statutory form of apprenticeship was introduced in England and Wales by the Apprenticeships, Skills, Children and Learning Act 2009 (ASCLA 2009). Unlike a contract of apprenticeship, an apprenticeship agreement is considered a contract of service, meaning apprentices are treated as ordinary employees without enhanced rights. From 26 May 2015, apprenticeship agreements now only apply in Wales. Agreements must satisfy the conditions specified in section 32 of the ASCLA 2009:

(a) the apprentice undertakes to work for the employer under the agreement;
(b) that the agreement is in the prescribed form;
(c) that the agreement states that it is governed by the law of England and Wales;
(d) that the agreement states that it is entered into in connection with a qualifying apprenticeship framework.

To meet the prescribed form requirements, agreements must contain the basic terms of employment under section 1 of the Employment Rights Act 1996 (ERA 1996) and include a statement of the skill, trade or occupation that the apprentice is being trained under the relevant apprenticeship framework.

In England, a new approved English apprenticeships framework has been implemented.

Approved English Apprenticeship Agreement: On 26 May 2015, the ASCLA 2009 introduced the “approved English apprenticeship” in England. To successfully complete an approved English apprenticeship, an individual must meet the “approved apprenticeship standard.”

Each standard specifies the relevant work sector and the expected outcomes for apprentices. Apprentices under these agreements are treated as ordinary employees (as in Wales) by their employers and do not have enhanced rights to damages if the apprenticeship is terminated early. These agreements have to satisfy the conditions as stated under section A1 of the ASCLA 2009:

(a) Provides for an individual to work as an apprentice in a sector for which the Secretary of State has published an approved apprenticeship standard.
(b) Provides for the apprentice to receive training in order to assist the apprentice to achieve the approved apprenticeship standard in the work done under the agreement.
(c) Satisfies any other conditions specified by the Secretary of State in regulations.

The agreement must also comply with section 1 of the ERA 1996 and should include the following details:

Both an apprenticeship agreement and an approved English apprenticeship agreement allow an employer more flexibility in terms of taking action for poor performance, conduct and terminating if the relationship becomes untenable or unsatisfactory.

What should I include in an apprentice agreement?

As well as being set out in the prescribed format under the regulations above, an employer may also want to consider including the following provisions in their agreements:

We would recommend that legal advice or the services of a solicitor are obtained if you are considering employing an apprentice. This to ensure that all requirements within the regulations are met. A properly drafted agreement will avoid potential issues being raised during the relationship and significantly reduce the likelihood of facing an employment tribunal.

What if the agreement is not put in writing?

If the agreement is not in writing and does not comply with the regulations, then the default position is the apprentice being employed under a contract of apprenticeship.
A contract of apprenticeship does not need to contain specific provisions or be in a particular form. It is governed by common law and affords an apprentice greater rights on termination than that of an employee.
If a contract of apprenticeship is terminated, they can claim to be paid for the entire duration of the fixed term and for the loss of employment opportunity if they have not been able to complete their qualification. This could be a very costly claim for an employer.

What are apprentices entitled to be paid?

Apprentices are entitled to the National Minimum Wage apprentice rate if they’re either aged under 19 or aged 19 or over and in the first year of their apprenticeship.
Apprentices are entitled to the minimum wage for their age if they are aged 19 or over and have completed the first year of their apprenticeship. National minimum wage rates are usually increased in April each year and can be found at www.gov.uk.

Can I restrict the age of applicants for an apprenticeship?

Employers often wish to choose young apprentices as the National Minimum Wage rate for apprentices under 19 years old, or who are in their first year of employment, are significantly lower.  Also, there can be increased funding available for younger apprentices.
However, the risk of choosing younger candidates is the potential indirect age discrimination against older applicants. A successful claim for discrimination can be costly to an employer, in that such claims are unlimited in the amount of compensation that a court can award.

What holidays are apprentices entitled to?

Apprentices are entitled to the same holiday entitlement as employees and workers. Under the Working Time Regulations 1998, this is currently 28 days per year or 5.6 weeks.

How many hours can an apprentice work?

Apprentices can start work as young as 16 and apprenticeships are generally for a minimum of 30 hours per week. The Working Time Regulations 1998 state that young workers (those under the ager of 18) should not work more than eight hours a day and 40 hours a week and don't normally work at night. A 30-minute break at a minimum is to be provided if their working day is longer than 4.5 hours. The regulations also state that you must have at least 12 hours rest in a 24 hour period between each working day and 48 hours consecutive rest per working week.