When you take on an apprentice, you’ll be aware that this is a low-skilled worker that will be conducting on-the-job learning. As an apprenticeship provider, you have a joint responsibility with the training provider to ensure their skills are enhanced. Whilst empowering youth (or unskilled) workers in this manner is a net positive for society, it’s inevitable that some businesses may find themselves in difficult territory and need to terminate the contract early. Ending an apprenticeship has unique challenges, but the overall difficulty of the process primarily depends on the type of apprenticeship contract.
In this article, Real Business will outline all you need to know about ending apprenticeships early, including the specific rights of employer and apprentice, how much notice is required, and how to handle possible pay disputes.
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What Types Of Apprenticeship Contracts Are There And How Do They Impact Termination?
Most apprentices today are employed under modern apprenticeship agreements, which provide them with many of the same employment protections as standard employees, unlike traditional contracts of apprenticeship that offer stronger legal protections.
There are two pieces of legislation under UK law that determine the apprenticeship framework, including regulations on protection against termination.
Apprenticeship Agreement (ASCLA 2009)
This agreement is found under the “Apprenticeships, Skills, children and Learning Act of 2009”. It is the most common apprenticeship programme format in England today. ASCLA 2009 tends to treat the apprenticeship programme more like a job, and less like training.
The following are things you should know about the apprenticeship agreement:
- Legal structure – This style of apprenticeship is considered invalid unless a written agreement designates it as under ASCLA 2009. It must also have details of the trade/occupation, and confirmation that the apprentice will follow a curriculum framework approved and managed by the learning provider.
- Apprentice employment rights – Apprentices are considered employees and have the same employment rights under the Employment Rights Act 1996. This includes statutory protections like defined working hours, health and safety protection, and benefits such as annual leave, holiday pay, rest breaks, sick pay entitlements etc. Most apprentices’ roles don’t extend beyond two years but for those that do, these apprentices gain enhanced protection against automatic unfair dismissal.
- Optional probation – A probationary period must be written into the contract for it to be valid. Dismissing apprentices during the probation period comes with a lot fewer issues than terminating the contract later on.
- Off-the-job training – A fifth (typically one day) of all work time should be devoted to “off-the-job training”, meaning developing key skills instead of doing business duties. Furthermore, apprentices enjoy extra support with periodic access to highly qualified learning and skills coaches.
- Dismissal rules – Employers retain the same dismissal rights for apprentices as for an employee so that includes dismissal for poor performance, misconduct and redundancy. A one-week notice period must be given unless the contract states otherwise. However, there is one ground for dismissal that has unique rules for an apprentice under ASCLA:
- Performance dismissal – In terms of performance, clear and fair expectations must be outlined, and an employer must provide the adequate support laid out by the training provider. To dismiss an apprentice, especially early on in the contract term, you must prove that they have failed to meet basic standards despite the provision of support and training. Contact the training provider and seek advice. The underperformance must be persistent even after giving the apprentice ample time to improve.
- Conversion – You can convert the apprentice to an employee if you like, but there may be fees with the training provider involved.
If the apprenticeship programme under ASCLA 2009 is ended early for legitimate reasons, there’s little chance of negative repercussions for either the apprentice or their training provider.
Contract of Apprenticeship (Common Law Apprenticeship)
This form of apprenticeship contract is more traditional because the core obligation of both the employer and training provider is to provide full-time training, with the job role and duties secondary to this. These apprenticeship contracts are much harder for the employer to terminate early.
Key features of this contract are:
- Legal structure – The contract must clearly state that it is a Contract of Apprenticeship.
- Duration – The apprentice is entitled to complete the full term of the apprenticeship programme, which can be between 1-4 years. Early termination is only allowed in very specific circumstances.
- Termination protection – The only valid grounds for termination are serious misconduct, business collapse, or the apprentice being considered untrainable due to complications with their own health, the apprentice’s ability to learn, or outright refusal to participate. Poor performance and absence are not considered to constitute grounds to terminate.
- Employment rights – On top of the enhanced protections, apprentices get the same right as other employees.
- Redundancy immunity – Unless the entire business closes down, redundancy is impossible. Even downsizing and restructuring are not considered valid bases for redundancy.
- Early termination – Terminating this contract early is almost always an automatic breach of contract, and both the apprentice and training provider may bring claims for damages.
- No early conversion – You cannot change the contract from an apprenticeship programme to an employment contract.
Apprenticeships are a three-way partnership between the employer, the apprentice, and the training provider, who should be involved early in the process when issues arise. Traditional apprenticeships are set up in such a way that they can only end in very limited circumstances.
All apprentices regardless of their contract type, are likely to benefit from a higher threshold for a fair dismissal compared to ordinary employees, because of the serious implications of dismissal on their training.
Try to formulate a strong skills partnership between the apprentice, employer, and training provider so the apprentice knows what to expect from the outset. If you find yourself in a position where you need to terminate the contract, the best course of action is to talk to the apprentice and see if they’re happy to part ways on a voluntary basis. In the event of refusal, alternative solutions are few and far between.
Dismissing an apprentice from a traditional contract of apprenticeship allows them to claim compensation and damages for lost wages for the remainder of the apprenticeship term, as well as other potential compensation.
Can Employees Leave Early During A Contract Of Apprenticeship?
Surprisingly, no. Not really.
When an employee signs a contract of apprenticeship, they are locked into it just like the employer. If employed under a contract of employment, an apprentice will likely have to pay back some of the training costs incurred by the employer if they leave early. Other compensation may also be sought.
Terminating apprenticeships early in this scenario is only possible if both parties decide on it mutually.
What Happens After An Apprenticeship Agreement Ends Early?
Apprentices who wish to stay with the company may have the option to transition into a permanent role as an existing employee, providing them with more job security and the possibility of remaining in the same job. They’ll receive a new contract of employment that’s the same as other employees in the business; they’ll now be a fully-fledged employee.
When an apprenticeship ends early, both parties simply go their separate ways if the termination is executed following a fair procedure and in line with the relevant compliance guidelines. If an employer doesn’t follow the procedures for early terminations, they run the risk of financial penalties.
Conclusion
The termination of an apprenticeship agreement can be done quite easily with ASCLA 2009, but not so much with an alternative arrangement like a common law apprenticeship. Employers should always be open and honest with their apprentices about their performance and document all instances of misconduct/poor performance to demonstrate evidence for an early termination.
FAQs
How much do apprentices get paid?
Employers are required to pay apprentices at least the National Minimum Wage for their age bracket. However, most employers in the UK nowadays offer apprenticeships at a similar pay level to other employees in the business to attract new talent. Ensuring fair compensation is crucial for providing apprentices with a rewarding and enjoyable experience, which can lead to the successful completion of their contract.
Who pays an apprentice’s wages?
The employer. However, employers may receive funding for offering apprenticeships at their business to help cover the training costs which can make hiring attractive. Both the employer and training provider play crucial roles in supporting the apprentice’s development and ensuring they receive the necessary training.
What if an apprentice decides to leave early?
In this situation, there is little an employer can do. Leaving a contract of apprenticeship early can damage professional bridges with employers and this may adversely affect future job opportunities. Communication is key to helping retain a disgruntled apprentice. Speak to your apprentice regularly to find out how they are getting on, clarify their individual career development goals and see how you can support them.
Can you make an apprentice redundant?
When businesses face financial difficulties, redundancies are common – but can you make an apprentice redundant? With an ASCLA 2009 apprenticeship – yes, it’s a perfectly valid reason – however, it’s only an option if the business is closing down or is no longer possible to provide training due to serious financial difficulties. Redundancies may occur if the business is struggling financially and needs to reduce costs. For an apprenticeship agreement, redundancies are permitted to save business costs where necessary providing the proper notice is given to the employee.
When apprentices under apprenticeship agreements are made redundant, the UK government will still fund their training for 12 weeks to give them time to find alternative employment to finish their apprenticeship and receive the qualifications they were working towards.
