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Recruiting and managing apprentices | 5 things employers need to know
Written by Caroline Johnstone on 22 April 2025
Apprenticeships offer a valuable opportunity for employers to develop homegrown talent, enhance employee loyalty, and cultivate a workforce tailored to their organisation’s specific needs. By combining hands-on experience with nationally recognised qualifications, apprenticeships can benefit both the employer and the individual.
However, employing apprentices comes with particular requirements and responsibilities. Here are five key things employers need to know to ensure legal compliance, avoid costly pitfalls, and get the most from their apprenticeship programmes.
1. Apprentices are employees – but not all apprenticeship contracts are equal
Apprentices are entitled to the same core employment rights as other staff, including paid holiday, rest breaks, and the National Minimum Wage for apprentices. However, the level of legal protection they receive can vary significantly depending on the type of contract they’re employed under.
Historically, apprentices were governed by common law contracts of apprenticeship. These offer enhanced protection and make it much more difficult – and costly – for employers to dismiss an apprentice early, even for reasons like poor performance or gross misconduct. If an employer ends the contract without just cause (such as in exceptional circumstances like a business closure), they could face a breach of contract claim. Compensation may include lost earnings for the remainder of the apprenticeship, missed training, and loss of future career prospects – which can result in significant financial liability.
Note: Crucially, redundancies don’t apply to common law apprentices. Several years ago, a Scottish plumbing apprentice who was made redundant was awarded £29,000 after a Tribunal ruled that he was entitled to be trained and employed by the company until the end of the apprenticeship.
To address this, the government introduced the Apprenticeships, Skills, Children and Learning Act 2009, which created a statutory framework for apprenticeships in England and Wales. Most apprentices today are engaged under this statutory model, which offers greater flexibility to employers – but only if the correct statutory agreement is used.
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2. Failing to issue the correct agreement can have costly consequences
If an employer fails to provide a valid statutory apprenticeship agreement that complies with the 2009 Act, the apprentice may automatically be treated as having a common law contract of apprenticeship – and this has serious implications.
Unlike statutory apprentices, common law apprentices cannot be dismissed in the usual way. Terminating the arrangement early without a legally justifiable reason could expose your organisation to breach of contract claims and significant compensation, as outlined above.
To avoid this risk, it’s essential that apprenticeship agreements are issued in writing and meet the statutory requirements. The agreement must set out the training being provided, the duration of the apprenticeship, and the roles and responsibilities of both the apprentice and the employer. Importantly, a standard employment contract or training agreement will not suffice – it must be the correct statutory apprenticeship agreement.
3. You must provide a contract by day one
Just like with any other employee, an apprentice must be issued with a written contract on or before their first day of employment. For existing employees who are starting an apprenticeship, a new or updated agreement should be issued before the apprenticeship begins to reflect the change in terms.
The apprenticeship agreement should clearly state:
- The apprentice’s job role;
- The duration of the apprenticeship;
- The training they will receive;
- The name of the training provider; and
- The framework or standard being followed.
WorkNest can provide a tailored apprenticeship contract and offer letter template to ensure legal compliance.
If you’ve already enrolled someone on an apprenticeship without issuing the appropriate agreement, it’s important to act quickly – contact us for advice on how to rectify the situation.
4. Different rules apply in Scotland and Northern Ireland
The statutory apprenticeship framework introduced by the Apprenticeships, Skills, Children and Learning Act 2009 applies only in England and Wales. In Scotland and Northern Ireland, apprenticeships are still governed by common law contracts, meaning the enhanced protections still apply.
As such, employers in these regions need to be especially cautious. Engaging apprentices without understanding the legal implications could make it difficult to manage performance issues or end the arrangement early.
Before recruiting an apprentice or enrolling an existing employee in Scotland or Northern Ireland, seek advice to ensure you’re complying with the relevant legal framework.
5. You may be eligible for funding – but responsibilities come with it
Employers who hire apprentices may be able to access government funding to cover training and assessment costs. All UK employers with an annual salary bill of more than £3 million now pay an Apprenticeship Levy, which means smaller employers may be able to access funding.
However, accessing funding isn’t automatic – and there are conditions attached. For example:
- The training must be delivered by an approved training provider.
- The apprentice must spend at least 20% of their time on off-the-job training.
- Employers must sign a written agreement with the training provider, often including a commitment statement.
Failing to meet these requirements could result in funding being withheld or reclaimed. It’s important to understand your obligations from the outset and work closely with your training provider to ensure compliance.
Top tips for managing apprentices
Recruitment is just the first step – effective management is crucial to ensuring apprentices succeed and thrive in their roles. Here’s how to support their growth:
Offer continuous support
Regularly check in with apprentices, providing guidance and ensuring they have the tools, training, and resources they need to excel.
Encourage integration into the workplace
Help apprentices feel like part of the team by offering mentorship, encouraging collaboration, and ensuring they’re involved in daily operations.
Track progress and set achievable goals
Conduct regular reviews to monitor development, provide constructive feedback, and adjust targets as necessary to encourage continued improvement.
Address performance prompty
Tackle performance issues early with clear, actionable feedback and a tailored improvement plan to help apprentices stay on track.
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