Kate Palmer, Employment Services Director at employment law, HR, and health & safety specialist Peninsula, explains all…
Apprenticeships are fast becoming a popular investment for businesses. In 2024, 132,560 apprenticeships were registered by the government – a steady increase of 1.3% from the previous year.
National Apprenticeship Week (10-16th February) is a time to highlight the benefits that apprenticeships bring for businesses. Employers must also be aware of the proper practices for employing apprentices, to avoid ending up in Employment Tribunal.
Apprenticeships are an incredibly valuable investment in any industry. They open the door for young people, career changers or just about anyone to get on the career ladder, with businesses reaping many benefits as a result.
Not only do apprenticeships help tackle the skills shortage that many industries are facing, but they can also reduce your employment costs and diversify the workforce whilst giving back to the community and reducing unemployment.
However, before beginning the hiring process, employers must ensure that they understand what apprenticeships require. It isn’t as straightforward as posting a job ad; there are government rules and regulations that must be followed beforehand. The wrong steps could lead to wrongful hiring, unlawful breaches, and business disruption.
As an employer, once you’ve decided you’d like to offer an apprenticeship for a particular role, you must partner with a training provider. To find the right training provider for you speak to them about your interest in certain courses; and they’ll be able to respond to your criteria. Once you’ve selected a provider, you can start advertising for job vacancies and managing applications.
Some employers may qualify for training funding to help cover apprenticeship costs. However, funding eligibility depends on whether you need to pay an apprenticeship levy or not. You should also set up an account with the government’s apprenticeship service. This will allow you to advertise apprenticeships and accept employer agreements with the Department for Education (DoE).
When it comes to hiring your apprentice, it’s important to note that they don’t always have to be new candidates or even young workers. Existing employees within your business may also qualify as an apprentice. The only criteria are that they must be 16 years old or older by the end of the summer holidays, not be in full-time education, work in a role that’s relevant to their apprenticeship and work enough paid weekly hours to complete sufficient training for their apprenticeship certification.
Once you’ve chosen the successful candidate, they must sign an employment contract outlining pay, working hours, work conditions, and other statutory terms, as with any other employee. What your employment contract looks like will differ depending on your location, as the requirements in Scotland are different to those in England and Wales.
Minimum wage rates for apprentices are also slightly different. The current rate is £6.40 but this will increase to £7.55 in April 2025, however it isn’t entirely cut and dry. Apprentices are entitled to the apprentice rate if they’re either under 19 years old or aged 19 or over and in the first year of their apprenticeship. However, if they are over 19 years old and have completed the first year of their apprenticeship then they will be entitled to the minimum wage rate for their age.
By ensuring that your apprenticeship roles follow all statutory laws and regulations, you’ll be able to hire talented and driven individuals who will bring great value to your company.
Photo by Priscilla Du Preez 🇨🇦 on Unsplash
