Hiring an apprentice is a strategic way to grow your workforce, invest in future talent, and build loyalty from the ground up. But the foundation of a successful apprenticeship starts with a strong, legally compliant contract. Without the right agreement in place, employers can face legal risks, confusion, and even tribunal claims.
A recent report from the Department for Education found that only 58% of apprentices feel their training is well-structured, and part of that dissatisfaction often stems from unclear or incomplete contracts. A solid apprentice contract sets expectations early, ensures compliance with the law, and supports better retention and performance.
In this blog, we will discuss how a strong apprenticeship contract should be, and why choosing the correct apprenticeship provider can support you through the apprenticeship process.
Do apprentices need a contract of employment
Yes, apprentices do need a contract of employment. It’s called an apprenticeship agreement, and it's a legal requirement. This contract outlines their working conditions, training, pay, and the qualification they’ll work towards. Without it, your business could face legal and funding risks.
How an apprentice contract differs from a standard employment contract
At first glance, an apprentice contract might seem similar to a standard employment contract, but there are key legal and practical differences.
Unlike regular employment, an apprenticeship is a contract of training as much as it is a contract of work. This means the agreement must reflect both employment rights and the educational elements of the apprenticeship. Apprentices are legally entitled to time off for study or training, and the employer is responsible for ensuring the apprentice gains the qualifications promised.
Failing to address these unique elements can lead to costly disputes. For example, apprentices employed under a “traditional” contract may have enhanced protections against dismissal, especially if the training is not completed.
What to include by law in a contract between employer and apprentice
The Apprenticeships, Skills, Children and Learning Act 2009 and accompanying regulations make it clear what must be included in an apprentice contract.
Working hours and rest breaks
The contract must specify the apprentice’s weekly working hours, which must not exceed 48 hours and must comply with the Working Time Regulations 1998. Apprentices aged 16-18 are subject to even stricter rules, such as a maximum of 40 hours per week and at least 12 hours’ rest between shifts. Breaks must also be clearly outlined, including lunch breaks and rest days. Being vague on this could be seen as a breach of employment law.
Pay and benefits
Apprentices must be paid at least the National Minimum Wage for apprentices, currently £7.55 per hour, for those aged under 19, or those aged 19+ in the first year of their apprenticeship. After that, standard age-related minimum wages apply. The contract should also state when and how wages are paid, and list any additional benefits, such as holiday entitlement, pension contributions, or reimbursements.
Training and qualification details
You must state the name of the training provider, the qualification the apprentice will work towards, and the structured training plan (often outlined separately in a commitment statement, but referenced in the contract). Employers should be clear on how much time is set aside for “off-the-job” training; from 1 August 2025, there will be a specified minimum number of training hours for each different apprenticeship standard; this will be published on the front of the standard.
Duration of the apprenticeship
The contract must define the start and expected end date of the apprenticeship. For government-funded apprenticeships in England, the minimum duration is 12 months, but most programmes range from 18 to 36 months depending on the level.
Notice periods and termination terms
As with any employment contract, it’s essential to include notice periods for both the employer and the apprentice. However, due to the dual employment-training nature of apprenticeships, dismissing an apprentice without cause can be more legally complex, particularly under common law contracts rather than statutory apprenticeships. Make sure your termination clauses are clear, fair, and legally compliant. Seek advice from your apprenticeship provider if you’re unsure how to structure these.
Apprenticeship contract: example of best practice clauses
Beyond the legal basics, a few extra clauses can make the difference between a compliant contract and a great one.
Learning support and mentoring arrangements
Include a section that outlines how the apprentice will be supported during their training. This might cover assigned mentors, access to equipment, or workplace learning opportunities. Doing this sets expectations and demonstrates your commitment to the apprentice’s development.
Expectations around conduct and performance
A code of conduct or behaviour expectations helps avoid confusion later. This might include punctuality, dress code, attendance policies, and what happens if performance issues arise.
You can reference your staff handbook here, but make sure the apprentice has access to it and understands it applies to them too.
Review and feedback timelines
Build in performance reviews at regular intervals (e.g. every 3 or 6 months). State when and how feedback will be given, and outline how progress will be tracked. This keeps both parties aligned and makes it easier to step in if support is needed.
Risks of not having a compliant apprentice contract
Skipping a proper contract or using a generic employment template can expose your business to several risks:
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Legal claims: Without a valid apprenticeship agreement, apprentices may fall under older “common law” apprentice rules, which offer them stronger legal protection and make apprentice contract termination harder.
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Funding issues: If your apprentice is government-funded, an invalid or missing agreement can result in clawbacks or loss of funding.
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Confusion and misaligned expectations: Without clear terms, apprentices may misunderstand their responsibilities or entitlements, leading to disengagement or disputes.
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Reputational damage: Poor apprenticeship experiences can lead to bad reviews on platforms like RateMyApprenticeship and damage your employer brand.
How a solid contract protects both employer and apprentice
A clear, well-structured contract is a safety net for everyone. It protects your legal position as an employer and gives the apprentice clarity about what to expect. It outlines mutual responsibilities and prevents misunderstandings. It also helps to ensure fair treatment, fosters trust, and lays the groundwork for a successful relationship, whether the apprentice stays on after training or moves on.
The role of clear contracts in apprentice retention and performance
Apprenticeship success depends on more than good training. Contracts play a vital role in setting the tone from day one. When apprentices know what’s expected of them and feel supported, they’re more likely to engage, perform, and stay. Studies have shown that businesses with structured apprenticeship programmes experience higher retention rates, and clear contracts are a key part of that structure.
Choose Total People as your apprenticeship provider
Drafting a legally sound apprentice contract is a commitment to doing things right from the start. At Total People, we help employers build strong foundations by offering:
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Expert guidance on contracts and compliance
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Tailored training solutions
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Ongoing support for both you and your apprentice
Whether you’re hiring your first apprentice or looking to improve your existing apprenticeship programme, we’re here to help. Contact Total People today to learn how we can support your business with apprenticeships that work.
