Hiring an apprentice? Pay & reimbursement requirements
Nov 29, 2024Looking to hire an apprentice? Here's a summary to help Employers and future Apprentices better understand the pay and reimbursement requirements in Australia. Continue reading for more information!
What an apprenticeship involves
An apprentice is an employee who learns their trade or profession while working for an employer under a training contract. An apprentice can be in the form of:
- Adult apprenticeship
- Over the age of 21 years or older at commencement
- School-based apprenticeship
- Still goes to high school while completing the apprenticeship
To note: All training must be registered through a training organisation recognised by a state or territory authority, such as TAFE.
Payment
Apprentices will be paid for all hours spent working at an employer’s business and in formal training/ trade school. Time spent at trade school is included in ordinary hours and the number of hours spent at trade school will be agreed with the employer and set out in the training plan.
Apprentice wages exist under applicable awards. To be paid apprentice rates a formal training contract must be in place between the employee and employer. The award based pay rates can vary dependent on:
- Length of the apprenticeship;
- How much training the apprentice has done;
- Whether the employee is a school-based or adult apprentice.
Pay Increases
To increase to the next pay level the award will state whether the milestones are based on:
- Time – e.g after 12 months of employment
- Records of when an apprentice started can be found in the contract
- Award examples – hair and beauty, café and restaurant industries
- Competency – e.g when a certain skill or training requirement has been met
- Competencies need to be outlined in the training plan and approved by the registered training organisation
- Award examples – building and construction, vehicle manufacturing and repair industries
Entitlements
Majority of the same entitlements under the National Employment Standards (NES) apply to an apprentice. This includes but is not limited to:
- annual leave
- sick leave
- public holidays
Certain awards and registered agreements have specific rules and entitlements that apply to apprentices. Please view the applicable award for more information (see the useful links below).
What an employer is required to pay for
Please see the applicable Fair Work Award regarding reimbursement time frames for training costs, fees and textbooks.
An employer is required reimburse an apprentice for:
- All fees charged by the RTO related to the training
- The cost of the textbooks
What an employer is NOT required to pay for
An employer does not have to reimburse the apprentice if:
- Progress in the course is unsatisfactory (see below);
- The employer pays the costs and fees directly to the training organisation;
- The apprentice is not working for them at the time costs need to be reimbursed;
- If the government reimbursed the apprentice for part of the costs.
Unsatisfactory progress: when an apprentice has not committed to their apprenticeship. Commitment is shown by attending training and actively participating. To note, failing a unit does not necessarily mean unsatisfactory progress. An employer is encouraged to contact the RTO directly to discuss progress if this is a concern.
Useful Resources:
Modern Awards – Full list of awards CLICK HERE
Fair Work Ombudsman – Apprentices and trainees CLICK HERE
Fair Work Ombudsman – Apprentice entitlements CLICK HERE
Additional information -- Guide to taking on an apprentice CLICK HERE
If you have any questions please feel free to reach out to Employii via [email protected] and one of our HR Consultants will be in touch.
Author Jess Roughsedge (HR Officer)
