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Apprenticeships are seen as the future of work-based learning. They are central to the government’s vision to improve skills, build sustainable growth and to enable individuals to succeed and progress in their careers. A target has been set of three million new apprenticeship starts by 2020, with no decline in the number of 16-18 apprentices.
An apprenticeship is a genuine job with an accompanying skills development and training programme. It enables young people to earn a salary whilst they gain technical knowledge and real practical experience, along with the functional and personal skills required for the specific job. These are acquired through a mix of learning in the workplace, formal off-the-job training and the opportunity to practise and embed these new skills in a real work environment.
Employers across all industries are looking for more than just academic qualifications. Graduates leaving the education system often lack the practical workplace skills required, such as problem solving, team working and communication. As a result the government has put employers at the heart of apprenticeship design so the training is specifically tailored to meet the needs of their sector and the economy more widely. Groups of “Trailblazer” employers in a range of sectors have led the development of the new standards and assessment approaches.
Employer Responsibilities
Apprentices are hired under a contract of employment and are subject to the same benefits and employment conditions as other employees. They can expect a regular wage, the same entitlement to holidays, fair working hours, rest breaks, notice periods, grievance and dismissal procedures, sick pay and maternity or paternity pay. However, an employer has increased responsibilities towards an apprentice. The focus is on the facilitation of training and undertaking work that will enhance this process. There must be a real job available with a contract of employment long enough for an apprentice to complete their training. They must work alongside experienced staff and the job role must help them gain the knowledge and skills needed to achieve the apprenticeship. The employer will be responsible for giving the apprentice an induction into their role, providing on-the-job training and releasing them for their off-the-job training.
Training
Most of the training is completed on-the-job at the work premises, learning job specific skills in the workplace. Off-the-job training is provided by a training provider and may be delivered through day release, block release, on-line learning or a blend of different methods. The employer can negotiate the delivery model with the training provider to ensure that it is right for the business.
Duration and Hours of Work
An apprenticeship must last at least twelve months with most taking between one and five years to complete, depending upon the level of apprenticeship and the industry sector. The employment contract is normally for a fixed term. Apprenticeship contracts are excluded from the regulations covering fixed-term employment and can only be terminated early in very rare cases such as serious misconduct.
Apprenticeships are full-time jobs with training or skills development attached. The minimum hours of employment should be at least 30 hours per week with at least 20% of their time spent undertaking off-the-job training that is relevant to the apprenticeship. They must be paid for this study time. 
The working time regulations for young people apply to apprentices. Young workers must not exceed eight hours a day or forty hours per week. They must have a rest break of at least thirty minutes if their shift lasts more than four and half hours and they must have a twelve hour break between one shift ending and another starting.
Apprentice Wages
An apprentice aged under 19, or over 19 but in their first year of an apprenticeship, must be paid at least the national minimum apprenticeship wage. If they are not in this category they should be paid the relevant national minimum wage rate for their age. However, many employers choose to pay a higher rate in recognition of the work undertaken and to ensure that their company attracts and retains high quality candidates. Training progress reviews are usually carried out as the trainee’s skills and experience develop with their pay increased accordingly. This gives an added incentive to the trainee to do well in the apprenticeship.
Apprenticeship Agreement
An apprenticeship agreement is a contract of service between an apprentice and the employer. It confirms the employment arrangements and provides the employee with a written statement of particulars. The agreement must be signed by both parties at the start of any apprenticeship as without this a completion certificate cannot be issued. The agreement must include the:
length of employment
training to be provided
working conditions
qualifications they are working towards.
A commitment statement must also be signed between the employer, the apprentice and the training provider. This includes the planned content and schedule for training, what is expected and offered by each party, and how to resolve queries or complaints.
Training Costs
An employer can apply for funding to help with the costs of training an apprentice. Large employers who have an annual wage bill of over £3 million, pay an apprenticeship levy equivalent to 0.5% of their wage bill. This levy goes into a digital account which the government tops up by 10%. Employers can then use these funds to purchase training from approved providers and assessors up to the funding band maximum for that apprenticeship. Employers that do not pay the levy will have 90% of apprenticeship training costs covered by the government or 100% if they employer fewer than fifty staff and the apprentice is under 19.
Benefits to Business
Apprenticeships offer significant returns on investment. Once an apprentice has completed their programme, they can add around £214 per week in productivity gains. A high proportion of apprentices stay with the organisations that trained them. Many companies have long serving staff and members of the senior management team who started out as apprentices with the company.
A business survey completed in 2017 found that employers experienced a wide range of benefits as a result of training apprentices. Half the companies surveyed said that their apprentices made a valuable contribution to the business during their training period, with a further third reporting that apprentices added value within their first few weeks or even from the first day. The following table shows the proportion of employers who experienced the main benefits listed:
In addition, 81% of consumers favour using a company that takes on apprentices. This suggests that apprenticeships can improve a company’s reputation and increase consumer demand for the goods and services offered.
Hiring apprentices can help businesses grow their own talent by boosting relevant work skills and developing a motivated and qualified workforce. They are a good way to recruit new staff or to up-skill existing staff and can lead to tangible economic benefits for employers.