Employing an Apprentice in a CIC

A CIC, like any other company in England, can employ apprentices.

This type of programme can be beneficial for for your community interest company.

The CIC gets an energetic new employee. The apprentice gets a chance to get hands-on experience in an active business.

What is an apprentice?

Let’s make sure that everyone understands the concept of apprenticeship before we go into the specifics of how to hire an apprentice.

In an apprenticeship, the employee spends equal amounts of time working for the company and going to school to earn their credentials.

The apprentice may be at least 16 years old. Apprenticeships can span one to four years and are common in various professions.

Apprenticeships have historically developed for manual labour jobs including carpentry, building, electrical work, and mechanics.

Nowadays, there are many more sectors involved, and apprenticeships are available in a wide range of professions.

Please note that there is a legal definition of an apprenticeship. Be certain that you’re meeting all local and national legal requirements regarding hours, duties, and compensation.

Apprentices must:

  • be an employee earning a wage and getting holiday pay
  • work alongside experienced staff
  • gain job-specific skills
  • get time for training and study related to your role (at least 20% of their normal working hours)

What types of businesses can hire apprentices?

In England, all businesses, including sole proprietorships and community interest companies alike, are able to hire apprentices.

Health and social work, which accounted for 25% of starts in 2020–21, is the industry sector with the most apprenticeship starts in England. The public sector, education, and wholesale and retail are further industries with high apprenticeship start rates.

How long do apprenticeships last?

Normally, apprenticeships last 1 to 5 years, depending on the job, the contract, and the needs of the company and apprentice.

What are the corresponding education levels?

According to Gov.UK, there are different levels of education for different types of apprenticeship:


The benefits of apprenticeships for companies and apprentices

Apprenticeships are pivotal to the long-term success and growth of a business by future-proofing the workforce. They serve as an invaluable tool to upskill employees, address skills shortages, and develop career paths across various levels.

Why are apprenticeships good for business?

They allow businesses to upskill in areas most needed and are tailored to recruit and train future talent. Apprenticeships are designed for all levels, from school leavers to career changers, and bring real, measurable value.

The financial advantages of apprenticeships include a cost-effective upskilling strategy, savings on national insurance for young apprentices, and government incentives like the £1,000 payment to employers hiring an apprentice aged 16-18.

Attracting new talent is vital, and apprenticeships are a robust tool for talent attraction, developing industry-leading skills, and diversifying the workforce. This approach helps build a resilient workforce with skills matched to a company’s future needs.

Diversity is key, as apprenticeships reach people from various backgrounds, enriching businesses from the ground up.

Free recruitment and cost-effective strategies for upskilling, especially for levy and non-levy paying businesses, make apprenticeships an attractive option.

Apprenticeship benefits for employees include improved retention, as the structured pathways provided by apprenticeships encourage employees to view their roles as long-term careers. They increase confidence and commitment, leading to a reported 69% improvement in staff retention for companies investing in apprenticeships.

How we can Help

In essence, apprenticeships offer a win-win situation for employers and employees, fostering talent, encouraging diversity, and driving business growth.

If you’re looking for guidance for your CIC, KG Accountants offers a variety of payroll services to our clients, Including Weekly, Monthly and Annual payrolls, setting up and managing staff pension.

More than just employment status advisors, we’ve worked with Community interest companies for over 10 years and know the nuances and issues that can impact you and your staff.

Hiring payroll providers can not only save big money but optimize your operations as well. Spend less time bean counting and more time focusing on growing your business!

If you would like advice and assistance ensuring that all payments to directors are perfectly legal, KG Accountants payroll service is the best answer.

We guarantee that every payment is in accordance with all contracts and laws.

If you’d like to explore how apprentices might benefit your CIC, give us a call at 0207 953 8913 or complete our enquiry form in order to book a FREE initial CIC consultation.

Categories: Apprentice, Employment and related matters, Employment issues, Payroll

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