Table of contents
Table of contents
Contributors
Tegan joined the marketing team in 2023 and works as a Marketing Executive, supporting a wide range of activity a...
Taking on an apprentice can be a great way for small businesses to grow their team while developing new talent. Apprenticeships can help businesses fill skills gaps, bring fresh ideas into the workplace, and support long-term growth.
But hiring an apprentice also comes with legal responsibilities that employers need to understand from the start.
From pay and contracts to health and safety obligations, it’s important for small businesses to know the rules before bringing apprentices into the workplace.
According to GOV.UK, there were more than 730,000 people in an apprenticeship in England during the 2023/24 academic year, showing the continued demand for apprenticeship opportunities across UK industries, which is sure to have increased in the past few years.
What is an apprentice?
An apprentice is an employee who works while completing recognised training as part of an apprenticeship programme.
Unlike unpaid work experience or internships, apprentices have employment rights and protections. This means employers must treat apprentices as part of their workforce and meet the same legal responsibilities they would for other employees.
Apprentices are typically entitled to:
- A contract of employment
- Paid holiday entitlement
- Rest breaks and working hour protections
- Statutory sick pay (where eligible)
For small businesses, this is an important distinction to understand early on.
Do small businesses have different rules for apprentices?
In most cases, the rules are the same regardless of business size.
Small businesses hiring apprentices must still follow employment law, health and safety regulations, and minimum wage requirements.
However, smaller employers may be able to access government support or apprenticeship funding schemes depending on eligibility.
Even with financial support available, employers remain responsible for providing a safe and compliant working environment.
Providing an apprenticeship agreement
Employers should provide apprentices with a formal apprenticeship agreement alongside written employment terms.
This should clearly explain:
- Job responsibilities
- Working hours
- Training arrangements
- Pay and holiday entitlement
Having clear agreements in place helps both employers and apprentices understand expectations from the beginning and can reduce the risk of disputes later on.
Understanding apprentice pay
One area that often causes confusion for small businesses is apprentice pay.
Apprentices are entitled to the apprentice minimum wage if they are:
- Under 19 years old
- Aged 19 or over and in the first year of their apprenticeship
After this point, they must usually receive the minimum wage rate for their age group.
Employers must also pay apprentices for time spent training as part of their working hours.
The latest rates and guidance can be found on the official GOV.UK website – apprenticeship pay guidance.
Health and safety responsibilities
Apprentices are often younger and less experienced in the workplace, which means employers may need to provide additional supervision and support.
Small businesses should make sure apprentices receive:
- Proper training
- Suitable supervision
- Safe equipment and working conditions
- Clear guidance on workplace safety procedures
This is particularly important in trade, construction, catering, manufacturing, and other higher-risk industries.
Supporting apprentices in small businesses
One advantage small businesses often have is the ability to offer apprentices more hands-on experience and closer mentoring.
Providing regular feedback, support, and development opportunities can help apprentices settle into the workplace and build confidence more quickly.
For many SMEs, apprenticeships are not just about short-term support — they can become an important part of building a skilled and reliable future workforce.
Do you need Employers’ Liability Insurance for apprenticeships?
In most cases, yes.
Because apprentices are legally classed as employees, employers will usually need employers’ liability insurance in place. This type of cover can help protect businesses if an employee or apprentice suffers an injury or illness connected to their work and makes a claim against the business.
For smaller businesses hiring staff for the first time, this is a legal requirement that can sometimes be overlooked. Accidents can happen even in workplaces with strong health and safety practices, and without the right cover in place, businesses could face significant compensation costs, legal fees, and potential regulatory fines.
Protectivity’s Employers’ Liability Insurance is designed for small businesses employing staff, apprentices, or temporary workers, helping provide financial and legal protection if something goes wrong. Employers’ Liability Insurance is available as an add-on to a wide range of business insurance policies, with Public Liability Insurance often included as standard alongside specialist extras such as legal expenses cover and professional indemnity insurance.
Find out more and get a quote now!
Get Employers’ Liability Insurance from Protectivity
*Disclaimer – This blog has been created as general information and should not be taken as advice. Make sure you have the correct level of insurance for your requirements and always review policy documentation. Information is factually accurate at the time of publishing but may have become out of date.
Last updated by
