An Employer Guide to Hiring an Apprentice

Ryan Patrick

• 5 min read
An Employer Guide to Hiring an Apprentice

Employing an apprentice offers a valuable opportunity to discover and train fresh talent, enhance the skills of current staff, and cultivate a capable workforce for your company's specific requirements.

An apprenticeship represents a form of paid job training that relates hands-on experience with academic study aimed at achieving a recognized qualification for a particular job role.

It's a viable work arrangement suitable for individuals aged 16 and above, accessible at various educational levels.

This implies that apprenticeships provide flexibility, enabling you to onboard someone with limited experience, support a seasoned professional seeking to switch careers or progress the expertise of an existing team member.

Apprenticeships enjoy widespread popularity among businesses of all sizes, encompassing over 1,500 positions spanning more than 170 diverse industries.

Thus, regardless of whether you manage a large corporation, a small-scale limited company, or operate as a sole trader, adopting this approach can serve as a valuable means to recruit and develop skilled personnel across all organizational levels.

Apprenticeships have become a favoured path for businesses of all sizes, encompassing over 1,500 job roles spread across more than 170 diverse industries.

Therefore, whether you manage a large corporation, a small limited company, or operate as a sole trader, integrating apprenticeships into your workforce development strategy can prove to be an effective method for both recruiting and nurturing skilled personnel across various organizational levels.

There are six essential steps to follow when hiring an apprentice. In England, all apprenticeship arrangements must be made through the government's National Apprenticeship Service. However, distinct procedures exist for hiring apprentices in Scotland, Wales, and Northern Ireland.

To initiate the process, you must first register your business as an employer with HM Revenue & Customs (HMRC). Let's talk about the six steps required for hiring an apprentice in England.

The 6 Steps Required for Hiring an Apprentice in England

Follow these 6 steps when hiring an apprentice in England:

1. Establish your apprenticeship service account by registering online. Throughout this process, you'll be required to:

  1. Add a Pay As You Earn (PAYE) scheme for your business.
  2. Accept the employer agreement with the Education and Skills Funding Agency (ESFA).
  3. If your company falls under the category of a small employer (meaning your annual PAYE bill is less than £3 million), you'll need to provide your employer PAYE reference and Accounts Office reference when setting up your account.

2. Select a training program

After successfully setting up your account, the next step involves choosing an apprenticeship training program suitable for your business needs.

There exists a wide variety of courses available, varying in qualification levels and covering many industries, ranging from agriculture and construction to accounting and legal services.

3. Locate a training provider

Once you've identified the appropriate apprenticeship training program, the subsequent task is to find a suitable training provider to administer the course.

You can easily browse through various providers by specifying the apprenticeship location within the online portal. The search option conveniently appears at the bottom of the screen once you've selected a course.

4. Secure funding

You have the opportunity to seek financial assistance from the government to cover the majority of your apprentice's training, assessment, and related expenses.

As a small-scale employer, you'll be responsible for paying 5% of the training and assessment costs to the course provider, while the government will fund the remaining 95%, up to the maximum limit set by the funding band.

Additionally, you may qualify for a £1,000 payment to support the apprentice in their workplace if they meet certain criteria:

  1. Aged between 16 to 18.
  2. Aged between 19 to 25 with an education, health, and care plan.
  3. Aged between 19 to 25 and formerly in care.

If your apprentice meets the eligibility criteria, your training provider will also issue two payments of £500 each. The first payment will be disbursed after 90 days, followed by the second payment after one year.

5. Promote your apprenticeship vacancy

Now it's time to attract the ideal apprentice by making an apprenticeship advertisement and submitting it for approval.

You can complete this process within the 'adverts' section of your online apprenticeship service account. Alternatively, you can delegate this task to your training provider.

Once approved, your advertisement will be published online on 'Find an apprenticeship' and any other external platforms where you wish to advertise it.

6. Select an apprentice

The final phase involves conducting interviews with potential candidates and choosing the most suitable apprentice for your business.

The selection and interview procedures may vary slightly based on the qualification level of the apprenticeship.

For instance, if you're recruiting a recent school graduate for an entry-level position, they may lack higher education qualifications or substantial work experience. In such cases, the apprenticeship serves as their initial step into both training and a new career path.

Once you've identified the ideal apprentice, you'll need to:

  1. Draft an apprenticeship agreement, outlining details such as the duration of employment, the training they'll receive, their working conditions, and the qualification they'll be working towards.
  2. Create and sign a commitment statement with the apprentice and the training provider. This document will specify the training curriculum, schedule, expectations from each party, and procedures for addressing queries or complaints.

By following these steps, you can effectively onboard and train your chosen apprentice, contributing to both their personal development and the growth of your business.

Payment Regulations

Apprentices are entitled to receive either the apprentice rate or the National Minimum Wage (NMW), depending on their age group and stage of apprenticeship:

  1. For individuals aged 16 to 18 years old, the apprentice rate applies, set at £6.40 per hour.
  2. Those aged 19 or over and in their first year of apprenticeship also receive the apprentice rate of £6.40 per hour.
  3. Individuals aged 19 or 20 who have completed their first year are entitled to the NMW for their age group, currently set at £8.60 per hour.
  4. For apprentices aged 21 or over who have completed their first year, the National Living Wage applies, currently set at £11.44 per hour.

Employers can utilize the National Minimum Wage and Living Wage calculator on the GOV.UK website to ensure compliance with payment requirements for apprentices.

Conditions of Apprenticeships

Apprentices are obligated to engage in an approved apprenticeship program, with the duration of training spanning at least one year. However, certain courses may extend up to five years, contingent upon the qualification level pursued by the apprentice.

When hiring an apprentice, it is imperative to provide them with substantive employment, enabling them to acquire the requisite skills and knowledge to complete their assessment.

This means:

  1. Working alongside experienced personnel who are suitably qualified.
  2. Acquiring job-specific expertise and competencies.
  3. Allocating adequate time, equivalent to at least 20% of their standard working hours, for training or study.

Incorporate Your Company with Incorpuk Today

At Incorpuk, we will help you file accurate information when you register your company through us. We will help you with incorporation articles, a registered office address, and all you may need to register your company in the UK. Contact our team if you seek any information; we will gladly assist.

Conclusion

Employers are required to compensate apprentices for the time devoted to studying or training for their apprenticeship qualification during regular working hours.

Additionally, employers must furnish apprentices with an employment contract outlining the terms of their engagement. Furthermore, apprentices are entitled to the same holiday pay, benefits, and rights as other employees occupying similar positions or grades.

The employment contract should specify the remuneration amount, the hours allocated for work and study/training, and any other pertinent details related to the apprenticeship arrangement. If you have any questions on Hiring an Apprentice, don’t hesitate to contact us, and we’ll do everything we can to help.