Hit TV show The Apprentice is back for a fourth series. Reactions to the show's contestants and the management style it portrays ranges from loving to loathing, making it popular viewing. Although it is “reality” television, the situation is far from typical and, contrary to the impression it gives, firing an apprentice on the spot can lead to expensive tribunal claims. Take a look behind the scenes to discover the truth about engaging and disengaging apprentices!   

For starters, you don’t need to run a multi-million pound empire to offer an apprenticeship. Organisations of any size and in any sector can take on a “traditional” apprentice, offering an individual a chance to learn a craft or trade working along side experienced staff with on or off the job training. In addition, the Government has launched “modern apprenticeship” schemes, which provide funding for young people to study for recognised vocational qualifications whilst gaining paid work experience with an employment sponsor. In England, the initiative is overseen by the Learning and Skills Council who contract with the learning providers and liaise with applicants and employers to co-ordinate placements. They currently operate over 180 different apprenticeships across 80 sectors, including the service sector, where the apprenticeship approach is a new one, for occupations such as business administration and customer services.

Secondly, you don’t have to offer them a six-figure salary! In fact, you might not even need to pay them the National Minimum Wage (NMW).  Employers are exempt from paying the NMW to apprentices who are under the age of 19.  Furthermore, apprentices who are aged 19 or over do not have a statutory right to the NMW in the first 12 months of their apprenticeship. However, the Learning and Skills Council has set a minimum earnings level of £80 per week for apprentices and, therefore, employers in England will need to pay at least this amount as a condition of participating in a modern apprenticeship arrangement. 

Thirdly, you have to remember that an apprentice will have all the usual employment rights, including that of ordinary unfair dismissal after completing a year’s service. Unless specifically exempt, as with the NMW, all the statutory rights conferred to persons employed under a contract of employment is taken to include those engaged under a contract of apprenticeship. A “contract of apprenticeship” has been defined by the Court of Appeal as “a contract in which a master undertakes to educate and train the apprentice in the practical and other skills needed to practise a skilled trade or profession and the apprentice binds himself to serve and work for the master and comply with all reasonable directions”. This recognises that the primary purpose of a contract of apprenticeship is to provide training to the apprentice and the employment aspect is considered secondary. Therefore, irrespective of length of service, firing an apprentice for poor performance in the job could lead to a costly breach of contract claim.

Damages for breach of a contract of apprenticeship are potentially much greater than damages for breach of a contract of employment. Dunk v George Waller & Sons Ltd (1970) established the common law principle that premature termination of a contract of apprenticeship for a reason other than serious misconduct, or outside the express terms of the agreement, will entitle the apprentice to compensation for loss of wages for the remainder of the fixed term, and for their reduced career prospects.  In Flett v Matheson (2006) the Court of Appeal held that, despite the involvement of the third party learning provider, a Modern Apprenticeship Agreement was capable of amounting to a contract of apprenticeship, entitling the apprentice to claim the additional damages identified in Dunk.
In real life the show’s boardroom antics could also leave employers at a higher risk of tribunal claims. In the last series Alan Sugar’s questioning of potential finalist Katie Hopkins on her child care arrangements caused a media frenzy amidst accusations of sex discrimination. Alan Sugar’s blunt one liners such as “As times have changed, you seem to have gone from anchor to wa**er" and “So Ansell, what do you think of Gretel?" may entertain the viewers but have failed to amuse organisations in the employment sector, including the TUC and the CBI. Some lawyers have even blamed the rise in unfair dismissal claims since the show has been aired on copy cat employers emulating the same direct, no nonsense approach to people management. The reality is that a blame culture and a leadership style that uses intimidation and humiliation as a means of motivation is counterproductive.  

The final truth is that, if you do decide to offer an apprenticeship, it is unlikely that you’ll get a television deal out of the process! Nonetheless, your business will be promoted in other ways. Apprenticeships are a unique way of attracting candidates to your organisation and addressing skill shortages in the labour market ensuring that you have the talent in the future to meet your needs.