Apprenticeships are a valuable investment for employers. You take on someone with potential, train them, and ideally see them grow into a productive, long-term member of your team. But what happens when an apprentice leaves before their apprenticeship ends? Can employers charge apprentices who leave early? Can you recover costs, like training fees, recruitment expenses, or equipment?
This is a common question, especially as more businesses invest time and money into developing future talent. Understanding your legal position is key to managing the situation fairly and protecting your business.
In this blog, we’ll break down what the law says, what employers can do, and how to avoid costly disputes when ending an apprenticeship early.
The basics: when does an apprenticeship end?
Most apprentices in the UK are employed under a modern apprenticeship agreement, which falls under the Apprenticeships, Skills, Children and Learning Act 2009. This is the standard type of agreement used today, backed by government funding and delivered in partnership with an approved training provider.
Apprenticeships typically last between 12 months and 4 years, depending on the level and complexity of the role. For example:
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A Level 2 (intermediate) apprenticeship usually takes around 12 to 18 months
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A Level 3 (advanced) apprenticeship may last 18 to 24 months
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Higher and degree-level apprenticeships can run up to 4 years or more
Learn more: What Apprenticeship Levels Are Available?
An apprenticeship officially ends when:
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The apprentice completes their training and passes their End-Point Assessment (EPA), or
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The fixed-term apprenticeship period finishes, or
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The agreement is ended early by either the employer or the apprentice
Can employers charge apprentices who leave early?
Here’s the short answer: sometimes, but it depends on the apprenticeship contract and the circumstances.
1. Training costs
In most government-funded apprenticeships, the training costs are covered by the government and/or the employer via the Apprenticeship Levy or co-investment. These funds go to the training provider, not directly to the apprentice.
That means you can’t charge the apprentice for this training, even if they leave early. It’s not their cost to bear.
Example: A 19-year-old apprentice leaves your business after six months. You’ve been using a training provider, and you’ve paid your share of the co-investment. You can’t ask the apprentice to reimburse you for that.
2. Additional costs
Some employers provide extra paid training not covered by the funding, for example, specialist certifications, health and safety courses, or driving lessons. If these are, optional, and clearly agreed upon in writing, with a clause allowing recovery of costs if the apprentice leaves early, then, you may be able to recover those costs, on a pro-rata basis.
But this must be reasonable and clearly laid out in the apprenticeship agreement or a separate training agreement. And it can’t amount to a penalty or unfair deduction.
Example: You pay £600 for a forklift license not covered by apprenticeship funding. Your contract says the cost will be repaid if the apprentice leaves within 12 months, reducing monthly. They leave after 6 months, you may be able to recover £300, if this was agreed upfront.
3. Recovery clauses must be fair and transparent
To stay on the right side of the law, any clause allowing cost recovery must be:
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Transparent: the apprentice must have agreed to it in writing before the cost was incurred.
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Specific: what costs are recoverable, and over what timeframe.
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Proportionate: ideally reducing over time as the benefit of the apprenticeship training is "used up."
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Compliant with employment law: deductions from wages must not take pay below minimum wage.
Unfair or unclear clauses won’t hold up legally, and trying to enforce them could lead to disputes or tribunal claims.
What the law says about ending an apprenticeship contract
There is no blanket law that says employers can or can’t charge apprentices who leave early. Instead, it depends on:
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The type of apprenticeship contract
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What was agreed in writing
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The reasonableness of any deductions
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Employment rights, such as protection from unlawful deductions under the Employment Rights Act 1996
If you make deductions from final pay without clear agreement, you risk breaching the law. Even if the apprentice owes you money, you can’t just withhold pay unless they’ve agreed to it in writing beforehand.
Best practice for apprentice employers
To avoid costly disputes, here’s what you should do:
1. Use clear contracts
Make sure your apprenticeship agreement or an accompanying training agreement includes:
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A list of any additional training costs
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A clear repayment schedule (if relevant)
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The apprentice’s written consent to recover costs if they leave early
2. Avoid overcharging or penalising
You can’t charge an apprentice to "punish" them for leaving. Clauses that act as a deterrent rather than a genuine cost recovery may be deemed unlawful penalties.
3. Keep good records
Document all training provided, especially if you’re covering additional costs outside the funding model. Keep receipts and invoices, and communicate regularly with the apprentice about what’s being covered.
4. Talk it through
If an apprentice is thinking about ending their apprenticeship early, try to understand why. Some problems can be solved, such as poor communication, workplace issues, or lack of support. A good exit interview process can also help you learn and improve.
5. Don’t act in anger
If an apprentice walks out unexpectedly, it’s frustrating, but resist the urge to retaliate financially. Seek legal advice before attempting to recover costs or deduct from wages.
Learn more: Apprenticeship Retention: What Employers Can Do to Keep Talent
What happens after the end of an apprenticeship?
When the apprenticeship ends, the employer’s obligations also end. But if you’ve handled things well, your former apprentice may still become a future employee, advocate, or even return later. The key is to ensure you’ve acted fairly, legally, and transparently throughout the process.
Choose Total People as your apprenticeship provider
Total People works with employers across the UK to ensure apprenticeships run smoothly from start to finish. From writing clear agreements to supporting apprentice retention, we’re here to help.
If you want to provide high quality training to your apprentice, and ensure their longevity at your company, explore our apprenticeships and contact us today.
