Modern Apprenticeships

The idea of apprentices has been around for a very long time – letting people learn their trade whilst getting on the job experience is something that benefits both employers and employees.

The concept of apprenticeship has changed considerably in recent years. Traditionally apprenticeships were for a fixed number of years, during which the employer had to train the apprentice and make sure that he was qualified by the end of the apprenticeship. However, under the modern apprenticeship the employer does not have to train the apprentice, he just has to provide a full opportunity for the apprentice to get trained; the qualification is normally provided by a central body.

Because the employer had such an obligation towards the apprentice under traditional apprenticeships, there were very limited get-out arrangements. The traditional apprentice was not considered to be an “employee” and as a result, employers were not able to get rid of apprentices very easily. In fact, under a traditional apprenticeship, an apprentice could only have his contract terminated if his conduct was so bad that it would be impossible to teach him the trade he was learning.

This means that a traditional apprentice whose contract was terminated before the end of the apprenticeship could sue not only for his lost pay to the end of the contract, but also for future losses arising out of the failure to complete the apprenticeship. Basically, he could say to the employer “I would have been a qualified plumber if it wasn’t for you” and make a claim for the money he would have been earning in the more senior position.

This has now been looked at in a recent case which should be of interest to all young people considering taking up a modern apprenticeship. It is also relevant to employers who offer apprenticeships.

In this case the seventeen year old Mr Flett started an apprenticeship in September 2002 under the electrical industry’s modern apprenticeship training plan. Under this apprenticeship he worked for a company called Matheson and had time off to be trained by a training provider, the idea being that he would become a qualified electrician.

Unfortunately Mr Flett was dismissed without notice before he completed his training. He made a claim to an employment tribunal.

Mr Flett said that if he had become a qualified electrician he would have been earning good money and he calculated that his losses by not qualifying amounted to £50,000. This included what he would have earned if the apprenticeship had continued for the full term.

Matheson argued that Mr Flett was an employee and as a result was only entitled to claim for the week’s notice that he should have been given.

The tribunal held that Mr Flett did not have a traditional apprenticeship, with the protections that afforded. Instead of £50,000, Mr Flett only got £112.12.

But it’s not all bad news for any young people out there considering starting up an apprenticeship. The tribunal also said that if employers of a modern apprentice want to terminate the contract, they should give the apprentice enough notice to find a similar placement with another employer. This could of course be far more than the notice a normal employee would get. The modern employee/apprentice will also be protected from being unfairly dismissed if they have one year’s service.

The lesson to be learnt from this is that both employers and apprentices need to be clear about what type of apprenticeship they are entering into and, in particular, the obligations about giving notice must be clearly spelt out.