Apprentice Contract: What Employers Must Include by Law

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 clear and comprehensive apprentice contract helps set expectations early, ensures legal compliance, and supports better retention and performance.
In this blog, we’ll explore what an apprenticeship contract should include in 2026, and why choosing the right apprenticeship provider can help you manage the process successfully.

Do apprentices need a contract of employment?

Yes, apprentices must have a contract of employment known as an apprenticeship agreement, and it is a legal requirement in England.
This agreement outlines:

• Working conditions
• Training arrangements
• Pay
• The apprenticeship standard or qualification being completed

Without a valid apprenticeship agreement, employers may face legal risks and potential issues with apprenticeship funding compliance.

How an apprentice contract differs from a standard employment contract 

At first glance, an apprentice contract may look similar to a typical employment contract, but there are important differences.
Unlike standard employment, an apprenticeship is both:

• A contract of employment
• A contract of training

This means the agreement must reflect both the employment relationship and the apprentice’s structured learning programme.

Apprentices are legally entitled to paid time for training, and the employer must support them in completing the apprenticeship standard and qualification.

Failing to include these training obligations can create legal disputes. In some cases, apprentices employed under a traditional contract of apprenticeship (common law) may have enhanced protections against dismissal if their training cannot be completed.

What must be included by law in a contract between employer and apprentice

The Apprenticeships, Skills, Children and Learning Act 2009 and supporting regulations set out the legal requirements for apprenticeship agreements.

Below are the key elements every apprentice contract should include.

Working hours and rest breaks 

The contract must clearly state the apprentice’s working hours.

Working hours must comply with the Working Tim e Regulations 1998, including:

• A maximum average working week of 48 hours (unless the worker opts out)
• Rest breaks during shifts
• Weekly rest periods

Apprentices aged 16–17 have additional protections:

• Maximum 8 hours per day
• Maximum 40 hours per week
• At least 12 hours’ rest between shifts
• Two days off per week

Break entitlements and working patterns should be clearly written in the contract to avoid misunderstandings or breaches of employment law.

Pay and benefits 

Apprentices must be paid at least the National Minimum Wage for apprentices.

From April 2026, the apprentice rate is:

• £8.00 per hour for apprentices aged under 19, or aged 19+ in the first year of their apprenticeship

After the first year, apprentices aged 19 or over must receive the minimum wage for their age group.

The contract should also specify:

• Pay frequency (weekly or monthly)
• Payment method
• Holiday entitlement
• Pension contributions
• Any additional benefits or reimbursements

Clearly documenting pay arrangements helps avoid disputes and ensures compliance with wage regulations.

Training and qualification details 

A key part of an apprenticeship contract is the training commitment.

The agreement must reference:

• The training provider
• The apprenticeship standard or qualification
• The training schedule

Employers must also ensure apprentices receive structured off-the-job training as part of their paid working hours.

Following apprenticeship reforms introduced from August 2025 onwards, the required minimum number of training hours is specified within each apprenticeship standard, replacing the previous universal 20% rule for many programmes.

Employers should confirm the training requirement for the specific standard their apprentice is completing.

Duration of the apprenticeship 

The contract must include:

• The start date
• The expected completion date

For government-funded apprenticeships in England, the minimum duration is typically 12 months, although most apprenticeships last between 18 and 36 months, depending on the level and occupation.

Notice periods and termination terms 

As with any employment contract, the agreement must include notice periods for both the employer and the apprentice.

However, apprenticeships can be more legally complex than standard employment contracts.

Ending an apprenticeship early without valid cause, particularly under a traditional contract of apprenticeship, could lead to legal claims for loss of training and future earnings.

Termination clauses should therefore be clear, fair, and legally compliant. Employers should seek advice from their apprenticeship provider or HR specialists if unsure.

Apprenticeship contract: example of best practice clauses 

In addition to the legal requirements, including best-practice clauses can strengthen your apprenticeship contract.

Learning support and mentoring arrangements 

A strong contract should explain how the apprentice will be supported throughout their programme.
This may include:

• Assigned workplace mentors
• Access to learning resources and equipment
• Opportunities for practical skills development

Outlining support structures shows your commitment to the apprentice’s development.

Expectations around conduct and performance 

A section outlining workplace expectations can help prevent misunderstandings later.

This may cover:

• Attendance and punctuality
• Behaviour and professionalism
• Dress code
• Performance expectations

You may reference your company staff handbook, but ensure apprentices receive access to it and understand that it applies to them.

Review and feedback timelines 

Regular performance reviews should be built into the apprenticeship structure.

For example:

• Reviews every 3 or 6 months
• Progress tracking with the training provider
• Feedback sessions on development and performance

This ensures both employer and apprentice remain aligned and allows early support if challenges arise.

Risks of not having a compliant apprentice contract 

Failing to use a compliant apprenticeship contract can create serious risks for employers:

• Legal claims: Without a valid apprenticeship agreement, the apprentice could fall under older common law apprenticeship rules, which offer greater protection and make dismissal more difficult.
• Funding issues: For government-funded apprenticeships, missing or incorrect agreements may lead to funding clawbacks or audit failures.
• Confusion and misaligned expectations: Unclear contracts can lead to misunderstandings about responsibilities, pay, training, or working hours.
• Reputational damage: Poor apprenticeship experiences can lead to negative reviews on platforms such as RateMyApprenticeship and harm your employer brand.

How a solid contract protects both employer and apprentice 

A well-written apprenticeship contract protects both parties.

For employers, it provides legal clarity and compliance. For apprentices, it explains their rights, responsibilities, and development pathway.

Clear contracts reduce misunderstandings, support fair treatment, and create a stronger working relationship from the beginning.

The role of clear contracts in apprentice retention and performance 

Apprenticeship success depends on more than just training delivery.

Contracts play an important role in setting expectations and building trust from day one.

When apprentices understand their responsibilities and feel supported through a structured programme, they are more likely to:

• Stay engaged
• Perform well
• Complete their apprenticeship successfully

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 

Creating a legally sound apprenticeship contract is about starting your apprenticeship programme on the right foundations.

At Total People, we support employers throughout the apprenticeship journey by providing:

• Expert guidance on contracts and legal compliance
• Tailored training programmes
• Ongoing support for both employers and apprentices

Whether you’re recruiting your first apprentice or strengthening an existing apprenticeship programme, we’re here to help.

Contact Total People today to learn how we can support your business with apprenticeships that deliver real results.