After the recent pessimistic figures on youth unemployment and the fall in university applications, it is no doubt with some relief that the focus can move from the negative to the positive with National Apprenticeship Week. Launched by the National Apprenticeship Service, It is the fifth year of the initiative, which seeks to raise the profile and importance of apprenticeships.
Economics v Law
The economic importance of apprenticeships is understandably the key driver for the Government, but ultimately, the success of this initiative and apprenticeships as a whole, stands or falls with the desire of the young people it is aimed at helping and the willingness of prospective employers to invest in them.
There is a long term economic benefit, supported by the Government, but one of the main areas of concern to employers remains a legal one.
Where a court finds that a “traditional” apprenticeship contract exists, which normally involves a fixed term tripartite arrangement between apprentice, training provider and employer (and, therefore, not a contract of “employment”) the ordinary rules of unfair dismissal do not apply. Therefore, the employer will remain responsible for ensuring that all of the obligations to the apprentice are satisfied under the apprenticeship agreement, which can only be achieved if the employment continues – and risk substantial damages if the contract is terminated early.
Section 35 of the Apprenticeships, Skills, Children and Learning Act 2009 (“ASCL”) is intended to remedy this situation and ensure that contracts of apprenticeships will be treated as contracts of service (i.e. employment contracts), and therefore, enable employers to enforce rules of poor performance and misconduct, etc. as long as such action is reasonable in all the circumstances. However, employers will have to wait until this provision becomes law, which will not happen until at least 2013.
Comment
Whereas, the Coalition Government’s desire to promote apprenticeships is an important initiative, for the theory to work in practice, confidence and the parties’ understanding of their obligations needs to understood from the outset. Employers need to ensure that they are aware of the legal implications of apprenticeship arrangements and apprentices need to demonstrate the desire and commitment to succeed, which may, in turn, help to allay the fears of sceptical employers who are unsure about employing apprentices.
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Employment Law Update – Time to Ring the Changes for 2012
Our Employment Law Team will explain the latest and forthcoming changes in the complex area of employment law and will update you on changes and developments for 2012.
Details of our upcoming seminars in April 2012 can be found by clicking here for our information booklet and booking form.
If you have any comments or queries please do not hesitate to contact Joanne Holborn, Adrian Maitra, or Tom Scaife on 01228 552600. Alternatively, email one of the team at HR@baineswilson.co.uk.
07 February 2012
