Apprenticeship Agreement (New Zealand)

An Apprenticeship Agreement in New Zealand sets out the duties, hours, pay, leave, and termination terms between employer and employee, consistent with the minimum entitlements guaranteed by the Employment Relations Act 2000.

The Industry Training and Apprenticeships Act 1992 provides the legislative framework for New Zealand Apprenticeships, a government-supported training programme administered through Te Pūkenga (New Zealand Institute of Skills and Technology) and the six Workforce Development Councils established under the Education and Training Act 2020. WDCs are responsible for setting industry training standards, approving apprenticeship training agreements, and monitoring employer and apprentice compliance.

The apprenticeship agreement operates alongside an individual employment agreement required under Section 63 of the Employment Relations Act 2000. While the training agreement governs the education and skill-development elements, the employment agreement covers wages, hours, holidays under the Holidays Act 2003, and personal grievance rights under Section 103 of the Employment Relations Act 2000. Both documents must be in place before the apprenticeship commences.

New Zealand Apprenticeships lead to a New Zealand Certificate at Level 4 on the New Zealand Qualifications Framework (NZQF) administered by the New Zealand Qualifications Authority (NZQA). Completion is recognised nationally and is a prerequisite for licensing in regulated trades such as electrical work under the Electricity (Safety) Regulations 2010 and plumbing under the Plumbers, Gasfitters, and Drainlayers Act 2006.

The Inland Revenue Department (IRD) requires PAYE to be deducted from all apprentice wages, and apprentices are covered by ACC levies in the same manner as other employees.

New Zealand Apprenticeships are funded through the Tertiary Education Commission (TEC), which provides industry training funding to support off-job training costs and, through the Apprenticeship Boost programme, wage subsidies to eligible employers. Employers who take on a registered New Zealand Apprentice should check their eligibility for TEC funding through the TEC's industry training funding arrangements.

The apprentice's employment status is that of a permanent employee from the date the apprenticeship commences. The apprentice is entitled to all employment protections under the Employment Relations Act 2000, including the right to raise a personal grievance under Section 103, protection against unjustified dismissal under Section 103A, and holiday entitlements under the Holidays Act 2003. The apprentice is also covered by the ACC levies scheme for any work-related injuries, and the employer must maintain appropriate health and safety practices under the Health and Safety at Work Act 2015.

The New Zealand Qualifications Authority (NZQA) quality-assures the qualifications awarded at the end of the apprenticeship. NZQA registers the qualification on the New Zealand Qualifications Framework (NZQF) at Level 4 and maintains the apprentice's Record of Learning on the NZQA database. Completion of the apprenticeship and award of the NZQA qualification is the prerequisite for registration or licensing in regulated trades such as electrical work under the Electricity (Safety) Regulations 2010 and plumbing under the Plumbers, Gasfitters, and Drainlayers Act 2006.

A New Zealand Apprenticeship Agreement is required whenever an employer in a recognised trade takes on a new apprentice through the New Zealand Apprenticeships programme. The agreement must be signed by the employer, the apprentice, and the relevant Workforce Development Council before the apprenticeship commences, or within a short period of commencement as approved by the WDC.

The agreement is mandatory — not optional — for apprenticeships in regulated trades. An employer who engages a trainee in a licensed trade without an apprenticeship agreement and without the required WDC registration may be in breach of both the Industry Training and Apprenticeships Act 1992 and the relevant licensing legislation. For example, unlicensed electrical work carries criminal penalties under the Electricity (Safety) Regulations 2010 enforced by WorkSafe NZ.

The agreement is also necessary when an existing employee is transitioning from a general employment role into a formal apprenticeship in a trade. In this case, both the training agreement and any amendments to the existing employment agreement must be documented before the apprenticeship training period begins.

Where an apprenticeship is interrupted — for example, due to employer insolvency, a change of employer, or the apprentice taking extended leave — a new or amended agreement must be executed with the replacement employer. The relevant WDC helps these transfers and must approve the continuation of the training plan.

The MBIE employment relations website and the TEC (Tertiary Education Commission) provide guidance on the requirements for employers wishing to take on New Zealand Apprentices, including subsidy eligibility and funding arrangements.

The agreement is also required when an existing employee transitions into a formal apprenticeship in a trade while remaining with the same employer. In this case, the apprenticeship training agreement must be executed and registered with the relevant Workforce Development Council before the training period begins, and any amendments to the existing employment agreement should be documented at the same time.

Where an apprenticeship is interrupted due to employer insolvency, a change of employer, or the apprentice taking extended leave, a new or amended agreement must be executed with the replacement employer and approved by the relevant WDC. The WDC helps these transfers and confirms that training plan credits earned under the previous employer will be recognised. The Tertiary Education Commission (TEC) provides guidance on continuity of apprenticeship funding arrangements during employer transfers.

Employers in the building and construction sector should also be aware of the Licensed Building Practitioner (LBP) scheme under the Building Act 2004, which requires certain building work to be carried out by or supervised by a licensed practitioner. Completing a New Zealand Apprenticeship in carpentry or other relevant trades is one recognised pathway to LBP registration with the Ministry of Business, Innovation and Employment.

A New Zealand Apprenticeship Agreement under the Industry Training and Apprenticeships Act 1992 must contain several key elements to be valid and to satisfy the requirements of the relevant Workforce Development Council.

Party details: Full legal names and contact details of the employer, the apprentice, and the relevant Workforce Development Council or ITO. The employer's New Zealand Business Number (NZBN) and the apprentice's date of birth and NZ citizenship or visa status should be recorded.

Trade or qualification: The specific trade or qualification being studied — for example, New Zealand Certificate in Electrical Engineering (Electrician) (Level 4) — together with the NZQA qualification code. The qualification must be approved by the relevant WDC and listed on the New Zealand Qualifications Framework.

Training plan: A detailed plan setting out the competencies to be achieved, the sequence and timing of off-job training blocks, the assessment methods, and the expected completion date. The training plan must be approved by the WDC.

Duration: The expected duration of the apprenticeship, typically three to four years depending on the trade. The start date and expected completion date must be specified.

Pay rate in NZD: The hourly wage rate at commencement, which must be at least the applicable minimum wage under the Minimum Wage Act 1983, together with any agreed progression schedule as the apprentice completes training stages.

Supervision arrangements: The name and qualifications of the supervisor — who must be a qualified tradesperson in the relevant trade — and the supervision ratio and arrangements for on-job training.

Off-job training: The frequency, duration, and provider of off-job training blocks at a polytechnic, ITO, or training provider approved by Te Pūkenga.

Obligations of each party: The employer's obligations to provide adequate work, supervision, and time for training; the apprentice's obligations to attend training and meet competency standards; and the WDC's monitoring and support role.

The forms-legal.com Apprenticeship Agreement (New Zealand) provides a ready-to-use template covering all these elements and consistent with the Industry Training and Apprenticeships Act 1992 and Employment Relations Act 2000.

WDC registration details: The name of the specific Workforce Development Council responsible for the apprenticeship — such as Waihanga Ara Rau (Construction and Infrastructure WDC) or Hanga-Aro-Rau (Manufacturing, Engineering and Logistics WDC) — together with the registered apprenticeship number assigned on enrolment. This number is needed for TEC funding claims and NZQA Record of Learning updates.

TEC funding declaration: Where the employer is claiming Apprenticeship Boost or industry training funding from the Tertiary Education Commission, the agreement should include a declaration confirming the employer meets the eligibility criteria and that the information provided is accurate. False declarations can result in repayment obligations to TEC.

Health and safety plan reference: A reference to the employer's health and safety management plan under the Health and Safety at Work Act 2015, confirming that the apprentice has been inducted into workplace health and safety procedures and has been made aware of hazards specific to the trade. WorkSafe NZ monitors apprenticeship workplaces as part of its sector-based inspection programmes for high-risk industries including construction and electrical work.

Licensing pathway: For trades where completion of the apprenticeship leads to a statutory licensing requirement — electricians under the Electricity (Safety) Regulations 2010 and plumbers and gasfitters under the Plumbers, Gasfitters, and Drainlayers Act 2006 — the agreement should reference the relevant licensing body and the steps required after completing the NZQA qualification to obtain the required licence to practise independently.