As a business owner, you may be considering employing an apprentice. Employing apprentices can be great for your business, and you have the opportunity to help train a new worker. It is important that you ensure your compliance with all of your legal requirements, including providing your apprentice with all of their minimum entitlements. This article will outline what an apprenticeship is and the legal obligations you may have as an employer employing apprentices.
What Is An Apprenticeship?
An apprenticeship is a form of practical training between an employer and employee that ultimately leads to a nationally recognised qualification. An apprenticeship can be:
- full-time;
- part-time; or
- school-based.
Apprentices develop a skilled trade such as electrical work, plumbing or hairdressing.
School-based apprentices are generally high school students between years 10 and 12 when they commence their apprenticeship. If a school-based apprentice is under 18 years of age, a parent or guardian will also need to sign a training contract alongside the apprentice.
It is important to distinguish between an apprenticeship and a traineeship. An apprenticeship generally involves an individual gaining a qualification in a traditional trade, such as plumbing or building. Alternatively, a traineeship will involve an individual gaining a qualification in an industry that is not trade-related, such as child care or retail.
What Are My Legal Obligations When Employing Apprentices?
Working Conditions
In general, the conditions of employment for apprentices are similar to those of other employees who have a similar role, including:
- hours of work;
- overtime;
- holidays;
- superannuation; and
- parental and sick leave.
Importantly, you should be aware that your apprentices are entitled to a different national minimum wage, which is generally lower in comparison to other employees. However, if they are covered by an award or enterprise agreement, they may have additional entitlements and you must ensure that these are met.
It is important to consider any time your apprentice spends at trade school completing training, will be considered ordinary hours of work for which they will need to be paid the correct rate of pay. You also need to provide time for your apprentice to attend their formal training.
Many modern awards also require that apprentices be reimbursed for relevant training costs, including fees and textbooks. However, there may be circumstances where you do not have an obligation to reimburse your apprentice for training costs, such as if their course progress is unsatisfactory.
Training Obligations
You are also required, however, to ensure that apprentices benefit from several additional working conditions which provide that they get:
- the best opportunity to learn the skills and acquire the knowledge of their trade;
- access to structured training;
- paid to attend training if necessary; and
- to enjoy a safe working environment.
The Registered Training Organisation (RTO) will be in contact with you and your apprentice. You must record evidence that the apprentice has demonstrated the required skills and completed their training plans.
Your apprentice’s training plan should set out the:
- title and qualification of their position;
- duration of their training plan;
- apprentice’s needs and abilities;
- units of competency for the apprentice to complete; and
- any specific assistance that you may provide to the apprentice due to any special learning needs.
Limitations on Numbers of Apprentices
There is no limit to the number of apprentices that you can employ.
As an employer, understand your essential employment obligations with this free LegalVision factsheet.
Training Contracts
The Australian Apprenticeship system operates based on you and your apprentices agreeing to a formal training agreement or contract. A training contract must be registered prior to the commencement of the apprenticeship.
The training contract includes:
- each party’s responsibilities in the apprenticeship;
- the qualification the apprentice will achieve;
- which RTO will deliver the training;
- employment arrangements and industrial awards that covered the apprentice; and
- how long the apprenticeship is for.
This training agreement protects both you and your employee’s interests. Accordingly, all working conditions should be included in the training agreement. The relevant State or Territory Training Authority will register the document.
A training contract should also specify a probation period that applies to the apprenticeship. Once the probation period passes, you and the apprentice will be bound by the terms of the training contract.
Continue reading this article below the formKey Takeaways
When employing apprentices, it is important that you are aware of your legal obligations towards them, including the relevant working conditions and training obligations. As an employer, you are required to ensure that your apprentices are given their entitlements. It is beneficial to document this employment relationship in a training contract that is legally binding on both you and your apprentice. If you have any questions regarding your obligations when hiring apprentices, our experienced employment lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
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