Clearview National December 2014 - Issue 157 | Page 82

BUSINESSNEWS

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 work for the
employer; a statement of terms;
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 thirdparty training provider; ultimately
the apprentice will receive a
recognised qualification.
“Apprenticeship agreements
can be terminated lawfully, if the
dismissal is fair and in accordance
with the contract. If it is a fixedterm 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

82 » DEC 2014 » CL EARVI E W- UK . C O M

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
obligations. Businesses should
seek professional advice on
drafting the contract to avoid