Apprenticeships are an excellent way for employers to develop their workforces, creating a framework for career growth while retaining productivity through on-the-job learning. The training can be adapted to meet your business’s needs, upskilling your workforce in the process.
But what steps can your business take to employ an apprentice? Here’s our guide on the apprenticeship rules for employers.
Pay and employment terms
It is encouraged that employers pay competitive wages for their apprentices’ services, depending on their progression and age. As a minimum, 16–18 year olds and those in the first year of an apprenticeship are owed the apprentice rate of £5.28 per hour, and those older are entitled to the National Minimum Wage for their age band:
- 18-20 years: £7.49
- 21-22: £10.18
- 23 years and over: £10.42
Apprentices are required to be employed for at least a year, but the employment term may be longer depending on the course, with some taking up to five years to complete.
Contracts and documents
There are two apprenticeship-specific documents that will need to be written and signed to meet apprenticeship standards:
Apprenticeship agreement – This takes the place of the employment contract and sets out the same kinds of terms but is more personalised and specific to the circumstances of an apprenticeship.
Apprenticeship training plan – This is co-signed by the employer, apprentice and the training provider, formalising the expectations of all involved. This is to ensure that the training is appropriate to the role and to ensure the eligibility of the apprentice.
Support off-job training
In order to comply with apprenticeship funding rules, employers of apprentices are required to support the off-job training aspect of the apprenticeship, in conjunction with the training provider. This collaborative approach will allow the apprentice to develop in a more holistic way, gaining competencies and skills both in the classroom and on the job.
Apprenticeship funding rules and regulations
The government can provide funding support to help pay for apprenticeship training under certain circumstances. The government will provide 95% of the funding for the training portion of the apprenticeship, paid directly to the training provider.
If an employer has an annual wage bill of more than £3,000,000 they will need to pay the apprenticeship levy (0.5% of the employer’s annual pay bill), and the funding rules change. In these cases, the Government will add 10% to any amount spent on training apprentices.
Whether the employer pays the apprenticeship levy or not, the Government will provide an additional £1,000 if the apprentice is 16 to 18 years old, 19 to 25 years old with an education, health and care plan, or 19 to 25 years old and they used to be in care.
For more information on apprenticeships, you can read our blog here.
