Making an Apprentice Redundant

Apprentices have a distinct legal status that sets them apart from other employees. This difference matters most when a business runs into financial trouble and starts thinking about redundancies. Many employers assume they can treat apprentices the same as anyone else on the payroll, but the law sees things differently.

Before making any decisions about an apprentice's future, you need to understand the specific protections that apply to them and which type of contract governs the arrangement.

How Apprentices Differ from Standard Employees

The level of protection an apprentice receives depends heavily on the type of contract in place. There are two main categories: the traditional "contract of apprenticeship" and the modern "apprenticeship agreement" introduced under the Apprenticeships, Skills, Children and Learning Act 2009.

A traditional contract of apprenticeship commits the employer to providing training and allowing the apprentice to develop skills over a fixed period. Courts have historically viewed these contracts as requiring employers to see the training through to completion, except in limited circumstances. These contracts offer protections that differ significantly from standard employment.

Modern apprenticeship agreements are more closely aligned with ordinary employment contracts. While they still involve training obligations, they may allow for termination under conditions similar to those applying to regular employees, including redundancy in certain situations.

If you are unsure which type of contract applies, check the original paperwork carefully. The wording and structure of the agreement will determine which legal framework governs the relationship. You may also wish to seek advice from Acas or consult a solicitor familiar with employment law.

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Can You Make an Apprentice Redundant?

The answer depends on the contract type and the specific circumstances. For apprentices on traditional contracts of apprenticeship, ending the arrangement early because of financial difficulty is often not possible. Tribunals have frequently found employers to be in breach of contract when they have tried to dismiss such apprentices on redundancy grounds.

For those on modern apprenticeship agreements, redundancy may be permissible where the employer follows proper procedures and the circumstances genuinely warrant it. However, this area of law remains complex and the outcome can vary depending on the specific terms agreed.

Serious misconduct by the apprentice, or a genuine inability to continue providing the required training, may give grounds for early termination in some circumstances. If your business is facing complete closure, ending the apprenticeship may be unavoidable. Even then, you could still face a claim for breach of contract, particularly if the apprentice is on a traditional contract.

Statutory redundancy rights may still apply regardless of the contract type, so you should factor these into any calculations.

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What Happens if You Get It Wrong

Dismissing an apprentice on a traditional contract of apprenticeship without proper grounds can result in a breach of contract claim. Unlike standard unfair dismissal claims, which are capped, breach of contract damages for these apprentices can include compensation for the loss of training and future career prospects. Tribunals have awarded substantial sums in the past to reflect what the apprentice would have earned and learned had the apprenticeship been completed.

For apprentices on modern agreements, damages are typically more limited and align more closely with standard employment dismissals.

There may also be consequences for your relationship with funding bodies. Employers who receive government funding for apprenticeship training and end apprenticeships improperly could be barred from accessing future funding through the Education and Skills Funding Agency.

What to Do Before Taking Action

If you are considering ending an apprenticeship early for any reason, take advice first. Acas offers free and impartial guidance to employers and can help you understand your options. For complex contract disputes or situations involving traditional contracts of apprenticeship, you should also consult a solicitor with expertise in employment law.

Review the apprenticeship agreement carefully to understand the exact terms and any provisions relating to early termination. Identify whether your apprentice is employed under a contract of apprenticeship or an apprenticeship agreement, as this will determine their level of protection.

Consider alternatives before moving to dismissal. Can the apprentice be transferred to another part of the business? Is there another employer who could take on the apprenticeship? The National Apprenticeship Service or your training provider may be able to help find alternative placements. For detailed guidance on apprenticeship rules and employer responsibilities, visit GOV.UK.

The Next Step

Now that you have read through the advice above, you might want to put it into practice. Our Apprenticeship Eligibility Checker lets you tell us about your situation and find out which UK apprenticeships you qualify for and how to apply. Try it now →