Pro Installer December 2014 - Issue 21 | Page 31

31 PRO INSTALLER DECEMBER 2014 PRO REGS @proinstaller1 Hiring and firing the apprentice is no laughing matter For weeks ‘The Apprentice’ has been dividing the nation as to the merits of the various apprentices, undoubtedly sparking fresh debate about the benefits of using apprentices to help a business succeed. When utilised properly, apprenticeships are good for both the business and the individual, however, solicitor Abisola Latunji, from law firm SGH Martineau cautions against the Lord Sugar approach: “despite the programme’s light-hearted approach to hiring and firing, the law governing apprenticeships is complicated. “The terms ‘contract of apprenticeship’ and ‘apprenticeship agreements’ sound similar, but the employment law implications differ significantly. Contracts of apprenticeship have the primary objective of training the individual, rather than have them perform work for the employer. Apprenticeship agreements are entered into and governed by the Apprenticeships, Skills, Children and Learning Act 2009 and are more like standard employment contracts. They must fulfil certain criteria, including: the apprentice undertaking to work for the employer; a statement of terms; a statement the agreement is entered into in connection with a qualifying apprenticeship framework; and a statement of the skill, trade or occupation for which the apprentice is being trained. “The apprenticeship will usually involve knowledge and competency elements, with training delivered by the third-party training provider; ultimately the apprentice will receive a recognised qualification. “Apprenticeship agreements can be terminated lawfully, if the dismissal is fair and in accordance Is your website legal? Abisola Latunji is an employment solicitor in the Commercial Group at UK top 100 law firm SGH Martineau LLP with the contract. If it is a fixed-term apprenticeship, unless the contract provides a right of early termination, an employer may have to pay the salary for the entire term if the agreement is terminated early. This position should be addressed in the contract. “Many employers are unaware that an apprenticeship cannot necessarily be terminated like other fixed term contracts. “Contracts of apprenticeship aim to provide training and employers can only terminate them in limited circumstances, like severe misconduct. An employer terminating for other reasons can be liable for loss of earnings and the cost of training for the remaining apprenticeship. “When an apprentice fails to meet the required standards of performance or behaviour, the business cannot simply sack them, which is why businesses must have thorough recruiting processes, given that a probationary period cannot necessarily be utilised. “Apprenticeship agreements can be more appealing, offering the option to terminate the agreement if things go wrong. If an apprenticeship agreement’s prescribed conditions are not met or no contract exists, there is a risk it might be deemed a ‘contract of apprenticeship’, bringing with it additional obliga- tions – businesses should seek professional advice on drafting the contract to avoid such issues. “Apprentices share employment rights with other employees, although the National Minimum Wage is lower for apprentices under 19 (or those 19 and over, but in the first year of their apprenticeship). “Funding for apprentices is age dependent, typically paid to training providers, with the employer usually required to contribute towards training in addition to the necessary wages. “If a business has fewer than 1,000 employees, has not taken on an apprentice in the past 12 months and hires apprentices between 16 and 24 years of age, i Ё