What Is An Apprenticeship Agreement?

Hiring an apprentice can be a great investment for your business, and is also extremely helpful for your apprentice. This means they can receive the right training while also helping out your business, and being compensated for this. 

However, taking on an apprentice is an important decision to make and comes with several responsibilities. So, it’s important to have an Apprenticeship Agreement in place to ensure that you’re covering all your bases when taking on an apprentice.

Who Is An Apprentice?

Before we go into the details of the Agreement, let’s go through who is actually considered an apprentice. 

An apprentice is anyone who combines their studies and work to obtain a trade qualification – this could be a hairdresser, chef or tradesperson. It covers a range of industries, but they all require a formal training contract with the training provider. You can search for an apprenticeship here.

What Is The Difference Between An Apprentice And A Trainee?

It is also important to distinguish between an apprentice and a trainee. 

Trainees are similar to apprentices, however traineeships cover a larger range of occupations, whereas an apprenticeship is generally for a skilled trade. Traineeships are also usually for a much shorter period of time (between 1-2 years), whereas apprenticeships last for much longer (up to 4 years).

What Is An Apprenticeship Agreement?

An Apprenticeship Agreement is a document which formalises an agreement between your business and an apprentice. This agreement will establish your obligations to provide training to the apprentice and the qualification that the apprentice is working towards. 

What Should The Agreement Include?

The agreement will also include other important aspects of your agreement, such as:

• The skill the apprentice is being trained for
• Start and end dates of the apprenticeship
• Amount of training

An apprentice will also need to sign a Commitment Statement with their training provider. It will include details around the training schedule, the responsibility of the training provider and employer and a dispute resolution process.

How Can The Agreement Be Terminated?

An Apprenticeship Agreement can only be cancelled in either of the following ways:

1. Mutual consent
2. If one party applies for cancellation to the relevant state training authority (after considering the circumstances)

This is why it’s essential that your agreement is registered with the relevant training authority. If not, termination of the agreement can become complex. 

Other Requirements

All apprentices must be employed under an appropriate industrial arrangement. Employers are required by law to have a copy of the relevant industrial agreement on file in the workplace. Apprentices usually receive special pay rates while they complete their qualification. 

This includes payment for all hours spent working at your business and in formal training/trade school. Apprentice wages are set out in the award or agreement that applies to your business. It can vary based on the length of the apprenticeship, how much training the apprentice has completed, and if the employee is a school-based or adult apprentice. 

How Do I Get An Apprenticeship Agreement?

Taking on an apprentice is a great idea for your business as it benefits both you and the apprentice. However, it’s crucial that you have the right Apprenticeship Agreement in place that covers all the relevant details and is registered with the right authoritative body. 

If you would like a consultation on your options going forward, you can reach us at 08081347754 or [email protected] for a free, no-obligations chat.

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