Apprenticeships are an increasingly attractive option for employers in 2026 and the government is committed to promoting their use. Following the introduction of statutory apprenticeships under the Apprenticeships, Skills, Children and Learning Act 2009 (ASCLA) and the apprenticeship levy in 2017 their use has become much more prevalent.
Apprenticeships allow people of all ages to earn while they learn and gain the skills they need to build a rewarding career. According to the government, since 2020, over 1.6 million apprentices have started their apprenticeship journey in a wide range of industries, from health to digital, to engineering and beyond. At a time when many employers are dealing with skills shortages and challenges with recruitment, apprenticeships offer a practical and cost-effective way of building future capability.
This article explains what an apprenticeship is, the different types that exist, associated employment law risks, and the business benefits of apprenticeships.
1. What is an Apprenticeship in Legal Terms?
In legal terms, an apprenticeship is a type of employment where the principal purpose is for an individual to receive training so they become competent in a specific trade, occupation or profession. Modern apprenticeships in England are usually delivered via a statutory Approved English Apprenticeship and this must comply with the requirements of the Apprenticeships, Skills, Children and Learning Act 2009 and link to an approved Apprenticeship standard. These statutory apprenticeships combine paid employment, along with structured training and lead to a nationally recognised qualification.
Apprenticeships are fixed term arrangements, usually lasting between one to four years depending on the level and the role or until a level of qualification is reached. Using the statutory framework helps employers avoid unintended consequences of creating a traditional common law apprenticeship, which provides much stronger legal protections for apprentices and can significantly restrict an employer’s ability to end the relationship early. (See below for more information on this.)
2. Apprenticeship Agreements
There are three main types of apprenticeship: the traditional common law Contract of Apprenticeship, Apprenticeship Agreement and the statutory (approved English Apprenticeship Agreement). Each entails different legal obligations for employers.
A) Contract of Apprenticeship
This type of apprenticeship provides significantly enhanced legal protection to apprentices, so making it much harder and riskier to terminate early compared to a standard employment relationship or other type of apprenticeship. Employers are strongly advised to avoid forming a Contract of Apprenticeship.
Traditional common law apprenticeships come with much stronger legal protections. Early termination is only permitted in very limited circumstances, such as where an apprentice is genuinely “unteachable” or if there is a redundancy when the business closes or fundamentally changes. Ending an apprenticeship without the proper justification can expose employers to significant damages that can potentially include losses for future career prospects.
Due to these risks common law apprenticeship contracts are rarely used intentionally. But, are sometimes created unintentionally when the statutory requirements for a modern statutory apprenticeship agreement are not met. Employers should therefore be careful to ensure that their apprenticeship arrangements comply fully with the statutory framework.
B) Apprenticeship Agreement
The Apprenticeship Agreement, which was introduced in 2009, created a statutory form of apprenticeship and was intended to encourage employers to use apprenticeships and reduced the enhanced protections associated with common law apprenticeships. It required apprentices to follow a qualification based framework and to have a written agreement in a prescribed form.
However, following the introduction of Approved English Apprenticeships in 2015 the move to skills based Standards from August 2020, this form of apprenticeship agreement is no longer used in England unless already entered into, but remains relevant in Wales.
C) Approved English Apprenticeship Agreement
Employers are encouraged to use a statutory Approved English Apprenticeship, which is the modern apprenticeship model in England and is open to individuals aged 16 and above. These apprenticeships span five levels, from Foundation through to Degree level, with the appropriate level depending on the role and sector. Each is based on an Apprenticeship Standard, setting out the knowledge, skills and behaviours the apprentice must achieve.
An Approved English Apprenticeship must include:
- A practical period generally of at least 12 months;
- Off‑the‑job training totalling at least 20% of working hours (or six hours per week for full‑time apprentices); and
- An end‑point assessment after the practical period to confirm competence against the Standard.
To qualify as an Approved English Apprenticeship Agreement, the written agreement must meet certain statutory requirements, including the following:
- The apprentice’s name and place of work;
- The start and the expected end date of the apprenticeship;
- The length of the practical training period;
- The approved apprenticeship standard the apprentice is working towards and the level of that standard;
- The amount of time the apprentice will spend on off-the-job training;
- Compliance with any other conditions set by the Secretary of State.
The agreement needs to be signed by the employer and the apprentice. If the apprentice agreement is incomplete, or not signed, it will not be a valid agreement.
Apprentices must also be issued with a training plan (previously known as a commitment statement), which is signed by the apprentice, the employer and the training provider. This outlines responsibilities, planned training and expected support.
3. Employer Obligations During an Apprenticeship
An approved English apprenticeship includes a practical period, off-the job training and an end-point assessment. For new starters from 1 August 2025, the minimum duration of an apprenticeship has reduced to 8 months (from 12 months). For those apprentices that started before 1 August 2025, the 12 month minimum duration still applies.
To remain compliant and access funding, employers must generally ensure progress reviews take place at least every three calendar months involving the employer, training provider, and apprentice with evidence of active learning throughout. Statutory apprentices are treated as employees, meaning they can be managed through normal performance, conduct and absence procedures. They do not receive the enhanced protections associated with common law apprenticeships. Guidance on Apprenticeship funding rules can be found here.
From April 2026, the minimum apprenticeship wage rates are:
- £8.00 for apprentices aged 16–19, or aged 19+ in their first year;
- £10.85 for apprentices aged 18–20 who have completed their first year;
- £12.71 for apprentices aged 21 and over who have completed their first year.
Apprentices must be paid for all off‑the‑job training time and their schedules must allow for completion of all required elements of the Apprenticeship Standard. Non-compliance can result in ESFA funding may be withdrawn and may trigger additional audit or clawback risks.
4. Ending an Apprenticeship: Managing Risk, Redundancy and Dismissals
If an employer makes an apprentice redundant, the level of support varies depending on how far the apprentice has progressed. The Department for Education will continue to fund their apprenticeship training for at least 12 weeks following redundancy. This is to give the apprentice time to find alternative employment so that they can continue their apprenticeship. If the apprentice cannot secure a new employer or their training provider can no longer offer the training, the Department for Education may fund them to completion if they have less than six months of training left or have completed 75% or more of their training.
Where an apprenticeship ends because the fixed term concludes this is generally treated as a dismissal for “some other substantial reason” rather than a redundancy. If the apprentice moves into a qualified role, the employer should issue a new contract to confirm the terms of the role, with continuity of employment being preserved form the start of the apprenticeship.
Employers cannot recover training costs from apprentices even if the apprenticeship ends early and employers should take this into account when making workforce planning decisions.
5. The Business Benefits of Apprenticeships
Apprenticeships can deliver significant commercial benefits for employers. Apprentices often show strong commitment as they develop skills while earning and progressing within an organisation.
Apprenticeships help employers to:
- Build a skilled workforce tailored to their organisational needs;
- Improve retention by investing in development;
- Recruit, train and upskill new and existing talent;
- Access government funding and financial incentives; and
- Support diversity and inclusion by creating accessible career pathways.
With the right approach, apprenticeships can boost your workforce, support business growth and develop future talent — backed by substantial government funding.
This article was co-authored by Lexie Williams, apprentice solicitor, and Laura McFadyen, partner in our Employment team.
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