Taking on an Apprentice: Legal Considerations in 2026

Apprenticeships have become an increasingly popular option for UK employers looking to build skills within their workforce while managing recruitment costs and future talent needs. For many businesses, taking on an apprentice offers a practical way to address skills shortages, develop employees to meet specific operational requirements, and access government-backed training support.

However, taking on an apprentice is not simply a training exercise. Apprentices are employees, and employers must comply with a defined legal and regulatory framework covering employment rights, pay, working time, training obligations and contractual documentation. Failure to understand these requirements can expose employers to compliance risks, including wage underpayments, unfair dismissal claims and funding consequences.

What this article is about
This guide is designed for UK employers, HR professionals and business owners who are considering taking on an apprentice. It explains what taking on an apprentice means in legal and practical terms, who can hire an apprentice, the contractual and employment law obligations involved, and how apprenticeships are funded. The aim is to provide a clear, employer-focused overview to support lawful and effective decision-making.

Section A: What Does Taking on an Apprentice Mean for Employers?

Taking on an apprentice means employing an individual in a genuine job role while supporting them through a structured programme of training that leads to an approved apprenticeship route. In England, this will generally be an approved apprenticeship standard. In other parts of the UK, apprenticeship frameworks and standards may still be used depending on the devolved system in place. Unlike informal training or graduate development schemes, apprenticeships are regulated and subject to specific employment and funding rules.

From a legal perspective, an apprentice is an employee. This means that, when taking on an apprentice, an employer enters into an employment relationship that carries the same core legal responsibilities as employing any other member of staff. These responsibilities include paying at least the statutory minimum wage, providing paid holiday and rest breaks, operating PAYE, carrying out right to work checks where required, and complying with employment law protections relating to discrimination, working time and dismissal.

At the same time, taking on an apprentice involves additional obligations that do not apply to standard employees. Employers must ensure the role aligns with the requirements of the relevant apprenticeship route, commit to providing structured on-the-job experience, and support the apprentice to complete the required amount of off-the-job training during paid working hours. Employers must also work with an approved apprenticeship training provider and enter into the required apprenticeship documentation under the applicable rules.

It is important for employers to understand that taking on an apprentice is not simply a lower-cost hiring option. Apprenticeships are designed to develop occupational competence over time, and the employer is expected to invest resources in supervision, mentoring and training. The role must be suitable for an apprentice and capable of supporting the development of new skills, rather than being limited to routine or low-skilled tasks.

From a workforce planning perspective, taking on an apprentice can support succession planning and long-term growth. Many employers use apprenticeships to train individuals for roles that are difficult to recruit for externally. However, this approach requires careful planning to ensure the business can meet its legal obligations throughout the apprenticeship period and its funding and training commitments throughout the programme.

Section A summary
Taking on an apprentice means employing someone under a regulated training and employment arrangement. Apprentices are employees with statutory rights, but employers also take on additional responsibilities linked to training, documentation and compliance. Understanding this dual role is essential before deciding to take on an apprentice.

Section B: Who Can Take on an Apprentice?

Taking on an apprentice is open to a wide range of UK employers, regardless of size or sector, provided certain basic requirements are met. Apprenticeships are used across the economy, from small family-run businesses and sole traders to large corporates and public sector organisations. There is no minimum business size or headcount requirement, and start-ups can also take on apprentices if they are properly set up as employers.

To take on an apprentice, an employer must be registered with HMRC and operate a PAYE scheme. This is essential because apprentices are employees, and employers are required to deduct income tax and National Insurance contributions from their wages in the same way as for other staff. Employers must also comply with wider employment law obligations, including health and safety requirements and right to work checks.

In addition to being a lawful employer, businesses taking on an apprentice must be able to offer a genuine job role that supports the development of skills and knowledge over time. The role must align with an approved apprenticeship route and provide sufficient opportunity for the apprentice to gain occupational competence. This means that not every role will be suitable for an apprenticeship, particularly where duties are narrowly defined or offer limited scope for progression. Employers should also be aware that suitability is not just a practical consideration: where the employer is using public funding, the apprenticeship must meet the relevant funding and programme rules, which are separate from employment law requirements.

Employers must also be prepared to work with an approved apprenticeship training provider. The training provider delivers the formal training element of the apprenticeship and assesses progress against the relevant standard or framework. While the provider plays a key role, responsibility for the apprentice as an employee remains with the employer, including day-to-day supervision and performance management.

For employers who are unable or unwilling to take on the full responsibilities of employing an apprentice directly, an alternative option is to work with an Apprenticeship Training Agency (ATA). Under this arrangement, the ATA employs the apprentice and places them with the host organisation. The host employer manages the apprentice’s work on a day-to-day basis, while the ATA retains responsibility for payroll, employment contracts and certain legal obligations. This can reduce administrative burden but may involve additional costs.

Ultimately, the decision to take on an apprentice should be based on whether the organisation can provide a suitable working environment, meaningful work, and the necessary support throughout the apprenticeship. Employers who treat apprenticeships as a short-term or low-cost staffing solution risk falling short of both their employment law duties and their training and funding commitments.

Section B summary
Any UK business that operates PAYE and can offer a suitable role can take on an apprentice. Employers must be able to support both the employment and training aspects of the arrangement, either directly or through an Apprenticeship Training Agency. Careful consideration should be given to whether the role and business are appropriate for an apprenticeship before proceeding, particularly where public funding is being used.

Section C: Legal Status of an Apprentice

When taking on an apprentice, it is critical for employers to understand the apprentice’s legal status under UK employment law. In most cases, an apprentice will be an employee, and the relationship between the employer and the apprentice will be governed by both employment law and the statutory framework that applies to apprenticeships.

In England, modern apprenticeships are typically governed by a statutory apprenticeship agreement. Where this type of agreement is used, the apprentice is treated as an employee for the purposes of employment law. This means the apprentice is entitled to the same core statutory rights as other employees, including paid annual leave, rest breaks, protection from discrimination under the Equality Act 2010, and the right not to be unfairly dismissed once they have acquired the necessary qualifying service.

The legal position can be significantly more complex where the apprenticeship is not properly documented. Historically, apprenticeships could be created under a common law contract of apprenticeship. This type of arrangement places a much stronger obligation on the employer to train the apprentice for the full duration of the apprenticeship and can make early termination substantially more difficult. Where a common law apprenticeship exists, dismissal before completion may expose the employer to enhanced compensation, including loss of career prospects, rather than the usual unfair dismissal remedies.

Employers taking on an apprentice should therefore ensure that a compliant statutory apprenticeship agreement is in place. If an employer fails to put a valid apprenticeship agreement in place, the individual is likely to be treated as a standard employee under a contract of employment. While this removes the special training obligations associated with a statutory apprenticeship, it also means the individual is no longer an apprentice in law. This can result in the loss of apprenticeship funding and potential clawback of public funding already received.

In practice, many apprentices are employed on fixed-term contracts linked to the expected duration of the apprenticeship. Employers should be aware that the expiry and non-renewal of a fixed-term apprenticeship contract will usually amount to a dismissal in law. Where the apprentice has sufficient continuous service to qualify for unfair dismissal protection, the employer must be able to show a potentially fair reason for dismissal and follow a fair procedure.

Understanding the legal status of an apprentice at the outset is essential to managing risk. Employers who assume that apprentices have fewer rights, or that apprenticeships can be ended informally, may expose themselves to employment tribunal claims and adverse funding consequences.

Section C summary
When taking on an apprentice, the individual will usually be an employee with full statutory employment rights. The type of apprenticeship agreement used is critical, as non-compliant or informal arrangements can create significant legal and funding risks. Employers must understand the apprentice’s legal status before the apprenticeship begins.

Section D: Contracts When Taking on an Apprentice

When taking on an apprentice, employers must put the correct contractual documentation in place from the outset. This is a critical compliance step, as the type and content of the contract will determine both the legal status of the apprentice and the employer’s obligations during the apprenticeship.

In England, most modern apprenticeships are governed by a statutory apprenticeship agreement. This agreement must be in writing and signed by both the employer and the apprentice. It sets out the framework under which the apprentice is employed and trained and must meet specific legal requirements. The apprenticeship agreement does not replace the contract of employment; rather, it sits alongside it and forms part of the overall contractual relationship.

A compliant apprenticeship agreement must include key information such as the apprentice’s job role or occupation, the relevant apprenticeship standard and level, the start and expected end dates of the apprenticeship, and details of the practical period during which the apprentice will work while also receiving training. It must also specify the amount of off-the-job training the apprentice will receive and confirm that this training will take place during paid working hours.

Employers taking on an apprentice must also enter into a commitment statement with the apprentice and the training provider. The commitment statement is a separate document that sets out the planned content and schedule of the training, the roles and responsibilities of each party, and the support that will be provided throughout the apprenticeship. While the commitment statement is primarily a funding and programme requirement rather than an employment law document, it plays an important role in demonstrating compliance with apprenticeship rules.

Failure to put a compliant statutory apprenticeship agreement in place can have serious consequences. Where the agreement does not meet the legal requirements, the individual may not be treated as a statutory apprentice in law. In such cases, the individual is likely to be regarded as a standard employee under a contract of employment. This may make termination subject to ordinary employment law principles, but it can also result in the loss of apprenticeship status and the withdrawal or clawback of public funding.

It is also important that the wider contract of employment is consistent with the apprenticeship agreement. Terms relating to pay, working hours, holiday entitlement and notice should be clearly set out and aligned with statutory requirements. Employers should avoid including provisions that conflict with the training obligations or suggest that the apprenticeship can be ended without following proper process.

Section D summary
Taking on an apprentice requires careful attention to contractual documentation. Employers must ensure that a compliant statutory apprenticeship agreement and commitment statement are in place, alongside a clear contract of employment. Errors at this stage can create significant legal and funding risks later on.

Section E: Pay, Working Time and Rest Breaks

Pay and working time are key compliance areas for employers taking on an apprentice. As apprentices are employees, they must be paid for the work they do and for the time they spend undertaking training that forms part of the apprenticeship. Employers must ensure that pay arrangements meet at least the statutory minimum requirements and are applied consistently.

Apprentices are entitled to the National Minimum Wage, with a specific apprentice rate applying in certain circumstances. The apprentice rate applies to apprentices who are under the age of 19, and to apprentices aged 19 or over during the first year of their apprenticeship. Once an apprentice aged 19 or over has completed the first year of their apprenticeship, they must be paid at least the National Minimum Wage rate applicable to their age group. Employers may choose to pay more than the statutory minimum, but they must not pay less.

When taking on an apprentice, employers must also comply with the Working Time Regulations. This includes ensuring that apprentices do not work more than an average of 48 hours per week unless a valid opt-out applies. Only adult apprentices aged 18 or over may opt out of the 48-hour weekly limit, and any opt-out must be voluntary and in writing. Young apprentices aged 16 or 17 cannot opt out of this limit.

Adult apprentices are generally entitled to a rest break of at least 20 minutes if they work more than six hours in a day, 11 consecutive hours of rest in each 24-hour period, and either one day off each week or two days off in a fortnight. Employers must ensure these minimum rest entitlements are met.

Additional protections apply where the apprentice is aged 16 or 17. Young apprentices must not work more than eight hours a day or 40 hours a week and are entitled to a rest break of at least 30 minutes if they work more than four and a half hours. They must also receive at least 12 hours of rest between working days and two days of rest each week. Employers taking on younger apprentices must be particularly careful to comply with these enhanced protections.

Working time for apprentices includes time spent on off-the-job training where this takes place during paid working hours. Employers must ensure that apprentices are paid for this time and that training commitments are factored into workforce planning. Failure to do so can result in underpayment of wages and breaches of working time rules.

Section E summary
When taking on an apprentice, employers must comply with National Minimum Wage and working time requirements. Apprentices must be paid for both work and training time, adult opt-out rules must be applied correctly, and additional protections apply to young apprentices. Careful planning of pay and hours is essential to avoid compliance failures.

Section F: Training Requirements and Off-the-Job Training

A defining feature of taking on an apprentice is the requirement to provide structured training alongside paid employment. Apprenticeships are not simply work-based roles; they are formal training programmes designed to develop occupational competence over time. Employers must therefore ensure that training requirements are properly understood and built into the working arrangement from the outset.

All apprenticeships must last a minimum of 12 months. The overall length of the apprenticeship will depend on the relevant apprenticeship standard or framework and the level being studied. Higher-level apprenticeships typically require a longer duration to allow the apprentice to develop the required knowledge, skills and behaviours. Employers should be aware that an apprenticeship cannot be shortened below the minimum duration, even where the apprentice has prior experience, unless the formal rules on recognised prior learning are satisfied.

A core obligation when taking on an apprentice is the requirement to provide off-the-job training. Off-the-job training must account for at least 20% of the apprentice’s paid working hours over the practical period of the apprenticeship. This training must take place during the apprentice’s normal working hours and must be paid at the apprentice’s normal rate of pay.

Off-the-job training does not necessarily mean time spent away from the workplace. It can include a wide range of structured learning activities that are separate from the apprentice’s normal day-to-day duties and are designed to develop new skills and knowledge. This may include classroom-based learning, online training, workshops, mentoring sessions, shadowing, project work or time spent practising new skills. Employers must ensure that off-the-job training is clearly identifiable and properly recorded.

English and maths training may form part of an apprenticeship where the apprentice has not yet achieved the required level. In some circumstances, this training can count towards off-the-job training, but it does not always count towards the minimum 20% requirement. Employers should check the applicable funding and programme rules to ensure training time is calculated correctly.

The delivery of off-the-job training is usually coordinated by the approved apprenticeship training provider. However, employers remain responsible for enabling the apprentice to attend training and complete learning activities. This may require adjusting work schedules, reallocating duties or providing time away from normal tasks. Employers who fail to support off-the-job training risk breaching apprenticeship funding rules and may face funding withdrawal or clawback.

Employers taking on an apprentice are also expected to provide appropriate supervision and support in the workplace. This commonly involves assigning a mentor or line manager who can guide the apprentice, monitor progress and liaise with the training provider. Effective workplace support is a key factor in the success of an apprenticeship.

Section F summary
Training is a central element of taking on an apprentice. Employers must ensure the apprenticeship lasts at least 12 months and includes a minimum of 20% off-the-job training during paid working hours. Supporting training delivery and complying with funding rules are essential to the lawful operation of an apprenticeship.

Section G: Employment Rights and Protections

When taking on an apprentice, employers must be aware that apprentices benefit from the same core employment rights and protections as other employees. Apprenticeships do not sit outside employment law, and employers should not assume that an apprentice has reduced rights because they are in training.

Apprentices are entitled to paid annual leave in line with the Working Time Regulations. This includes a minimum of 5.6 weeks’ paid holiday per year for full-time apprentices, inclusive of bank holidays, calculated on a pro rata basis where the apprentice works part time. Employers must allow apprentices to take their holiday and should not restrict leave because of training commitments.

Apprentices are entitled to statutory sick pay where the qualifying conditions are met, as well as any contractual sick pay that applies to other employees. Employers taking on an apprentice should ensure that sickness absence procedures apply consistently and that apprentices are not treated less favourably because of their trainee status.

Apprentices are fully protected under the Equality Act 2010. This means they must not be subjected to discrimination, harassment or victimisation on the grounds of protected characteristics such as age, disability, sex, race, religion or belief, sexual orientation, pregnancy or gender reassignment. Employers must ensure that recruitment, training opportunities, pay decisions and disciplinary action relating to apprentices comply with equality law.

Apprentices may acquire the right not to be unfairly dismissed once they have completed the qualifying period of service, currently two years. Employers should be aware that the non-renewal of a fixed-term apprenticeship contract will normally amount to a dismissal in law. Where unfair dismissal protection applies, the employer must have a potentially fair reason for dismissal and must follow a fair procedure. The genuine completion of an apprenticeship may provide a fair reason for dismissal, but this will depend on the circumstances and the process followed.

In redundancy situations, apprentices are treated in the same way as other employees. Where there is a genuine redundancy, employers must follow a fair redundancy process, including consultation and fair selection. Apprentices with at least two years’ continuous service may be entitled to statutory redundancy pay.

Section G summary
Apprentices benefit from the same statutory employment rights as other employees. Employers taking on an apprentice must comply with rules on holiday, sick pay, discrimination, unfair dismissal and redundancy, and must manage apprentices in line with standard employment law principles throughout the apprenticeship.

Section H: Ending an Apprenticeship

Employers taking on an apprentice should plan from the outset how the apprenticeship may come to an end. While many apprenticeships conclude successfully with the apprentice completing their training, there are circumstances where the apprenticeship ends early or where no ongoing role is offered at the end of the programme. How an apprenticeship ends has important legal and funding implications.

An apprenticeship may come to an end when the apprentice successfully completes the apprenticeship and reaches the planned end date. There is no automatic legal obligation on an employer to offer the apprentice a permanent role once the apprenticeship has ended. However, employers should manage communications carefully to avoid creating an expectation of continued employment unless this is genuinely intended.

Where an apprentice is employed on a fixed-term contract linked to the duration of the apprenticeship, the expiry and non-renewal of that contract will usually amount to a dismissal in law. Employers taking on an apprentice must therefore consider whether the apprentice has accrued sufficient continuous service to qualify for unfair dismissal protection. Where such protection applies, the employer will need a potentially fair reason for dismissal and must follow a fair procedure.

Dismissal during an apprenticeship can arise for reasons such as conduct, capability, redundancy or business closure. Employers should not assume that an apprenticeship can be ended informally or without process. Where the apprentice has unfair dismissal protection, dismissal must be handled in line with standard employment law principles, including investigation, warnings where appropriate and the right to appeal.

Redundancy can also bring an apprenticeship to an end. If a genuine redundancy situation arises, employers must follow a fair redundancy process, including consultation and fair selection. Apprentices with at least two years’ service may be entitled to statutory redundancy pay. There is no additional legal obligation to create alternative employment solely because the individual is an apprentice, although suitable vacancies should be considered where they exist.

Employers should also be mindful of the contractual structure of the apprenticeship. Where a compliant statutory apprenticeship agreement is in place, the apprenticeship can generally be ended in line with normal employment law principles. However, where a common law contract of apprenticeship exists, early termination may expose the employer to enhanced damages, including compensation for loss of training and future career prospects. This reinforces the importance of using compliant documentation when taking on an apprentice.

Section H summary
Ending an apprenticeship requires careful handling. Employers taking on an apprentice must understand when dismissal rules apply, follow fair procedures where required and be aware of the increased risks associated with non-compliant or common law apprenticeship arrangements.

Section I: Funding and the Apprenticeship Levy

Funding is a central consideration for employers taking on an apprentice. While apprentices are employees and must be paid in the usual way, a significant proportion of apprenticeship training and assessment costs are supported through government funding. The level of employer contribution depends on whether the employer is required to pay the apprenticeship levy.

Employers with an annual pay bill of more than £3 million are required to pay the apprenticeship levy. The levy is charged at a rate of 0.5% of the employer’s total pay bill and is collected by HMRC through the PAYE system. Levy-paying employers receive funds in a digital apprenticeship account, which can be used to pay for apprenticeship training and assessment with approved providers.

The apprenticeship levy itself is collected UK-wide, but the way in which levy funds are used and how apprenticeship funding operates is devolved. Employers taking on an apprentice should therefore ensure they understand the specific funding rules that apply in England, Scotland, Wales or Northern Ireland, particularly where they operate across more than one jurisdiction.

Employers who do not pay the apprenticeship levy can still take on an apprentice with substantial government support. In England, non-levy paying employers are required to contribute a small percentage of the training and assessment costs, with the government funding the remainder. This co-investment model is intended to make apprenticeships accessible to smaller employers.

In addition to training funding, employers taking on an apprentice may benefit from National Insurance contribution relief. Employers are exempt from paying secondary Class 1 National Insurance contributions for apprentices under the age of 25 on earnings up to the Upper Earnings Limit. This exemption can reduce the overall cost of employing an apprentice, particularly where younger apprentices are recruited.

It is important to note that government funding covers training and assessment costs only. Employers remain responsible for paying the apprentice’s wages, providing paid holiday and other statutory benefits, and meeting any additional costs associated with supervision, equipment or support. Funding arrangements should therefore be factored into wider workforce planning and budgeting decisions.

Section I summary
Employers taking on an apprentice can access government funding to support training costs, with the level of contribution depending on whether the apprenticeship levy applies. While funding can significantly reduce training costs, employers remain responsible for wages and employment-related expenses.

You can read our extensive guide to the Apprenticeship Levy here >>

FAQs: Taking on an Apprentice

What does taking on an apprentice involve?

Taking on an apprentice involves employing an individual in a genuine job role while supporting them through a structured training programme that leads to an approved apprenticeship route. Employers must provide paid work, allow time for training during working hours, and comply with employment law obligations relating to pay, holiday, working time and dismissal.

Do apprentices count as employees under UK law?

Yes. Apprentices are employees and are entitled to the same core statutory employment rights as other employees. This includes rights to paid annual leave, rest breaks, protection from discrimination and, where the qualifying period is met, protection from unfair dismissal.

Who can take on an apprentice?

Any UK business that is registered with HMRC and operates PAYE can take on an apprentice, provided it can offer a suitable role and support the training requirements. This includes sole traders, small businesses, charities and large organisations.

How much does it cost to take on an apprentice?

The cost of taking on an apprentice includes wages, employment-related costs and any required contribution to training costs. Government funding covers most or all of the training and assessment costs, depending on whether the employer pays the apprenticeship levy. Employers may also benefit from National Insurance contribution relief for younger apprentices.

How much do I need to pay an apprentice?

Apprentices must be paid at least the National Minimum Wage. A specific apprentice rate applies to apprentices under 19 and to those aged 19 or over in the first year of their apprenticeship. Apprentices aged 19 or over who have completed their first year must be paid at least the minimum wage rate for their age group.

What is off-the-job training?

Off-the-job training is structured learning that develops an apprentice’s skills and knowledge and is separate from their normal day-to-day duties. It must account for at least 20% of the apprentice’s paid working hours and take place during working time. This can include classroom learning, mentoring, workshops, project work or supervised practice.

Can I dismiss an apprentice during their apprenticeship?

Yes, but employers must follow employment law principles. Where the apprentice has unfair dismissal protection, dismissal must be for a fair reason and follow a fair procedure. Non-compliant documentation or informal arrangements can significantly increase legal risk when ending an apprenticeship early.

Do I have to offer a permanent job at the end of an apprenticeship?

No. There is no legal obligation to offer a permanent role once the apprenticeship ends. Employers should, however, manage expectations carefully and avoid making assurances of ongoing employment unless this is genuinely intended.

What happens if an apprentice is made redundant?

Apprentices can be made redundant where there is a genuine redundancy situation. Employers must follow a fair redundancy process, including consultation. Apprentices with at least two years’ continuous service may be entitled to statutory redundancy pay.

Is taking on an apprentice suitable for every role?

No. The role must be capable of supporting meaningful skill development and meeting the requirements of the relevant apprenticeship route. Roles that are too narrow or repetitive may not be suitable, particularly where public funding is being used.

Conclusion

Taking on an apprentice can be a valuable and strategic option for UK employers looking to develop skills, build future talent and address long-term workforce needs. Apprenticeships offer a structured route to training that combines paid employment with recognised training outcomes, supported by government funding and approved training providers.

However, apprenticeships also bring defined legal, contractual and funding responsibilities. Apprentices are employees, and employers must comply with employment law requirements relating to pay, working time, holiday entitlement, discrimination and dismissal. In addition, employers must meet specific apprenticeship rules around training delivery, documentation and engagement with training providers.

Employers who approach apprenticeships with a clear understanding of these obligations are better placed to benefit from the arrangement while managing risk. This includes ensuring the role is suitable for an apprenticeship, putting compliant contractual documentation in place, supporting off-the-job training and planning carefully for how the apprenticeship may end.

Before taking on an apprentice, employers should assess whether they have the capacity to support both the employment and training elements of the arrangement. With proper planning and lawful implementation, taking on an apprentice can be a sustainable and effective investment in the future of the business.

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