Ending an apprenticeship has unique challenges, but the overall difficulty of the process depends on what kind of apprenticeship contract it is. When you take on an apprentice, you are no doubt made aware that this is a low-skilled worker that will be conducting on-the-job learning, and you have a joint responsibility with the training provider to ensure their skills are enhanced throughout. Whilst empowering youthful (or unskilled) workers in this manner is a net positive for society, it’s inevitable that some businesses may find themselves at an impasse and need to terminate the contract.
But how do you go about terminating apprenticeships early? In this article, Real Business will outline all you need to know, including the specific rights in place, how much notice is required, possible pay disputes and more.
Table of Contents
What types of apprenticeship contracts are there, and how do they change termination?
There are two pieces of legislation under UK law that determine the apprenticeship framework, including protection against termination.
Apprenticeship agreement (ASCLA 2009)
This agreement is filed under the “Apprenticeships, Skills, children and Learning Act of 2009”. It is the most common apprenticeship programme format in England today. ASCLA 2009 prefer 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 being 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.
- Employment status – They are considered employees, not students, meaning have largely the same employment rights, such as health and safety protections, and same benefits, as other employees. Examples are annual leave, holiday pay, rest breaks, sick pay entitlements etc. For apprenticeships that go over two years, which is a rarity, they gain enhanced protection against 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 otherwise.
- 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, they have extra support by having access to, meeting with and being tutored by, highly skilled learning and skills coaches periodically.
- Dismissal rules – Apprentices can be dismissed for poor performance, misconduct and redundancy, following the same fair disciplinary procedures as an employee. A one-week notice period must be given during these situations unless otherwise stated. All that said, 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 you must provide the adequate support laid out by the training provider. To dismiss an apprentice, especially early on in the overall contract length, you must prove that they have failed to meet basic standards despite the provision of support and training. The underperformance must be persistent even after giving 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 under legitimate reasons, there’s little chance of negative blowback from either the apprentice or their training provider.
Contract of Apprenticeship (Common Law Apprenticeship)
This form of apprenticeship contract is a highly traditional and protected kind, mainly because the core obligation of both the employer and training provider is to provide full-term training, with the job role and duties being secondary. They are much, much harder to end the apprenticeship early from the employer side.
Key features of this contract are:
- Legal structure – The contract must be stated clearly to be 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, learning incapacity or outright refusal to participate. Poor performance and absence are not considered to be viable.
- Employment rights – On top of the enhanced protections, they get the employment rights of other employees.
- Redundancy immunity – Unless the entire business shuts down, redundancy is impossible. Even downsizing and restructuring are not considered valid.
- Early termination – Terminating this contract early is almost always an automatic breach of contract, and beyond that, both the apprentice and training provider may sue for damages.
- No early conversion – You cannot change the contract from an apprenticeship programme to an employment contract.
The contract is set up in a way that only truly unique circumstances can end their contract. If you find yourself in a position where you need to terminate the contract, the best course of action is to play it straight. Talk to the apprentice, let them know, and see if they’re willing to part ways. In the event of refusal, alternative solutions are few. Try to formulate a strong skills partnership between the apprentice, employer, and training provider.
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 as much as 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’re leaving early. Other compensation may also be sought.
Terminating apprenticeships early in this scenario is only possible if both parties come to the table, and decide on it mutually.
What happens after an apprenticeship agreement ends early?
If an apprenticeship ends due to completion, more often than not, the apprentice will receive a new contract of employment that’s the same as other employees in the business, and they’ll now be a fully-fledged employee with a new fixed-term contract. 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.
When an apprenticeship ends early, both parties will simply go their separate ways if done in compliance. Otherwise, there is the possibility of legal fines.
Conclusion
Overall, the termination of an apprenticeship agreement can be done quite easily with ASCLA 2009, but not so much with the other kind. At the end of the day, we recommend always being open and honest about the performance of your apprentices, and document all instances of misconduct/poor performance if you anticipate their time is coming to an end with your company.
FAQ – How much do apprentices get paid?
Employers are required to pay apprentices at least the National Minimum Wage for their age bracket. Most employers in the UK nowadays offer apprenticeships at a similar pay level to other employees in the business to attract new talent. Even when they don’t offer higher pay than ordinary, employers are obliged to pay the National Minimum Wage for the employee’s age bracket as a minimum.
Ensuring fair compensation is crucial for providing apprentices with a rewarding and enjoyable experience, which can lead to the successful completion of their program.
FAQ – 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.
Both the employer and training provider play crucial roles in supporting the apprentice’s development and ensuring they receive the necessary training.
FAQ – What if an apprentice decides to leave early?
In this situation, there’s not really anything you can do about it. If you find yourself in this situation unwillingly, try to find a middle ground. Impress on them that leaving a contract of apprenticeship early can damage professional bridges with employers, which might adversely affect future job opportunities. Get a sense of their individual career development goals and see how you can support them.
FAQ – Can you make an apprentice redundant?
When businesses face financial difficulties, redundancies are common – but can you make an apprentice redundant? For ASCLA 2009 – yes, it’s a perfectly valid reason.
But for a contract of apprenticeship, redundancy is only an option if the business is closing down or it’s 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 and given the proper notice is served 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.
