An apprenticeship agreement is the legal contract that governs the relationship between an employer, an apprentice, and the training provider who delivers the off-the-job learning component of an apprenticeship programme in England and Wales. It is a specific type of employment contract that carries additional legal rights and responsibilities compared to an ordinary contract of employment, rooted in centuries of common law and given a modern statutory foundation by the Apprenticeships, Skills, Children and Learning Act 2009 (ASCLA 2009).

Modern apprenticeships in England are built around apprenticeship standards, which are employer-designed frameworks setting out the skills, knowledge, and behaviours a competent practitioner in a given occupation needs to demonstrate. Standards are developed by groups of employers known as Trailblazer groups and approved by the Institute for Apprenticeships and Technical Education (IfATE). There are currently over 600 approved apprenticeship standards covering occupations from software developer and accountancy to construction management and advanced manufacturing. Apprenticeships are available at levels 2 to 7, equivalent to GCSE level through to master’s degree level.

From a legal standpoint, an apprentice is an employee. They are entitled to the same statutory employment rights as any other employee from their first day of work, including the right to be paid at least the National Minimum Wage, the right to statutory holiday pay under the Working Time Regulations 1998, protection from unlawful discrimination under the Equality Act 2010, the right to Statutory Sick Pay, and protection from unfair dismissal after the qualifying period. However, an apprentice also has additional protections that apply specifically to apprentices, developed through English common law.

The most significant of these additional protections is the common law principle that an apprenticeship agreement cannot be brought to an end during the agreed term simply because the employer decides they no longer want the apprentice. If an employer dismisses an apprentice before the end of the agreed apprenticeship period, without sufficient cause, the apprentice may be entitled to damages that go beyond ordinary unfair dismissal compensation. These damages can include loss of the remainder of the wages that would have been earned during the apprenticeship, and crucially, loss of the value of the training and qualification the apprentice was due to receive. This is a significantly more generous remedy than that available to ordinary employees, and it is one of the key reasons why employers should take particular care before ending an apprenticeship agreement early.

The Education and Skills Act 2008 created a duty on young people in England to participate in education or training until the age of 18. Apprenticeships are one of the approved forms of participation in education or training that satisfy this duty, which is one of the reasons why apprenticeships are particularly commonly used to engage school leavers aged 16 to 18.

Since 2017, apprenticeship funding in England has been managed through the Apprenticeship Levy, paid by employers with an annual pay bill of more than £3 million. Levy-paying employers can access their levy pot to fund apprenticeship training. Non-levy-paying employers can access government co-investment, whereby the government pays 95% of the cost of approved training and the employer pays 5%.

An apprenticeship agreement is required whenever an employer takes on an apprentice in England or Wales. The ASCLA 2009 requires that an apprenticeship undertaken in England must be the subject of an apprenticeship agreement between the employer and the apprentice, and that the apprenticeship is delivered by a registered apprenticeship training provider listed on the Register of Apprenticeship Training Providers (RoATP) maintained by the ESFA.

You need an apprenticeship agreement in the following situations. First, you are taking on a young person aged 16 to 18 who is leaving school or college and wants to earn while they learn. Second, you are taking on an older learner (aged 19 or over) who wants to gain a new qualification or change career direction through an apprenticeship. There is no upper age limit for apprenticeships in England; adults can undertake an apprenticeship at any age. Third, you are upskilling an existing employee by putting them through an apprenticeship programme to develop new skills or achieve a higher-level qualification. Existing employees can undertake apprenticeships if they are genuinely learning new skills that are substantially different from those they already have.

The apprenticeship agreement must be distinguished from two other documents that form part of the apprenticeship framework. The Commitment Statement (or training plan) is a document that sets out the detailed programme of training to be delivered by the training provider, the schedule of learning, and the responsibilities of each of the three parties — the employer, the apprentice, and the training provider. It is signed by all three parties and is updated as the apprenticeship progresses. The Individual Learner Record (ILR) is the official government record of the apprentice’s participation in the programme, submitted by the training provider to the ESFA.

The apprenticeship agreement is the employment contract component of the arrangement. It must be signed before the apprentice starts work, must comply with the written statement requirements of section 1 of the Employment Rights Act 1996, and must include specific information required under the ASCLA 2009, including the agreed apprenticeship standard and the expected duration of the apprenticeship. The minimum duration of any apprenticeship in England is 12 months, and the apprentice must spend at least 20% of their contracted hours in off-the-job training.

A legally compliant apprenticeship agreement for England and Wales must contain several elements that distinguish it from an ordinary employment contract, as well as all the standard requirements of section 1 of the Employment Rights Act 1996.

The apprenticeship standard clause identifies the specific apprenticeship standard or framework that the apprentice will undertake, and the qualification that they will receive on successful completion of the end-point assessment. The standard must be one that has been approved by the Institute for Apprenticeships and Technical Education (IfATE) and that appears on the Find Apprenticeship Training database maintained by the ESFA. Including this clause ensures that both the employer and the apprentice understand precisely what programme they are committed to.

The training provider clause identifies the registered training provider that will deliver the off-the-job learning, conduct ongoing progress reviews, and prepare the apprentice for the end-point assessment. The training provider must be listed on the Register of Apprenticeship Training Providers. Including the provider’s name, address, and role in the agreement makes clear the three-party nature of the arrangement and the respective obligations of each party.

The duration clause specifies the start date and expected completion date of the apprenticeship. Apprenticeships must last at least 12 months under the ASCLA 2009. The expected completion date is an estimate; the actual completion date will depend on the apprentice’s progress and the date on which they successfully complete the end-point assessment. The agreement should explain what happens if the apprenticeship takes longer than anticipated, and what the process is for extending the programme.

The off-the-job training clause is required by the current ESFA apprenticeship funding rules. Apprentices must spend at least 20% of their contracted hours on off-the-job training. Off-the-job training means training that is received by the apprentice during normal working hours, that teaches new knowledge, skills, and behaviours required to achieve the apprenticeship standard, and that is not part of the apprentice’s day-to-day working duties. The clause should specify how many hours per week of off-the-job training the apprentice will receive, what form that training will take, and when and where it will be delivered.

The National Minimum Wage clause is critical. The apprentice rate under the National Minimum Wage Act 1998 applies to apprentices aged under 19, and to apprentices aged 19 or over who are in the first year of their apprenticeship. After the first year, apprentices aged 19 or over are entitled to the age-appropriate National Minimum Wage rate. For 2024/25, the apprentice rate is £6.40 per hour. The agreement must commit the employer to reviewing and adjusting the apprentice’s pay at the appropriate time to comply with the NMW Act 1998.

The early termination clause requires particular care. As explained above, dismissing an apprentice before the end of the agreed term, without sufficient cause, can expose the employer to greater damages than would be the case with an ordinary employee. The clause should clearly set out the notice period required to end the apprenticeship, and should acknowledge the employer’s understanding of the legal consequences of early termination.

The young workers provisions of the Working Time Regulations 1998 apply to apprentices aged under 18. Young workers may not ordinarily work more than 8 hours per day or 40 hours per week, and are entitled to specific rest breaks. These restrictions must be reflected in the working hours provisions of the agreement.

Parental or guardian consent is required for apprentices under the age of 18. While an apprenticeship agreement is a contract of employment (and therefore capable of being entered into by a minor), best practice and some funding requirements indicate that a parent or guardian should also sign the agreement to confirm their consent to the arrangement.

The data protection clause must comply with the UK GDPR and the Data Protection Act 2018. Both the employer and the training provider will process personal data about the apprentice, and both are required to provide the apprentice with privacy notices explaining how their data will be used. The employer and training provider will also be required to share certain data about the apprentice with the ESFA as part of the apprenticeship funding and reporting requirements.