A step-by-step guide to terminating an employee 

Ending someone’s employment is never easy, and it needs particular care when the person is an apprentice. Apprentices can have stronger protection than ordinary employees, depending on the type of contract they are on. Before dismissing an apprentice, work through the three steps below.

Step 1: Identify the type of contract

First, check which kind of contract the apprentice has. It will usually be one of the following:

• a traditional contract of apprenticeship, governed by the common law
• a statutory apprenticeship agreement, such as an approved English apprenticeship agreement
• an ordinary contract of employment, often alongside a separate training agreement

The statutory apprenticeship agreement rules apply in England and Wales. In Scotland, Modern Apprenticeships usually involve an ordinary employment contract with a training agreement, but depending on how the paperwork is drafted, an arrangement could still be treated as a traditional contract of apprenticeship.

The differences matter, so check the documents carefully and take advice if you are unsure. Our article on the fundamental clauses in employment contracts explains what a contract should cover.

Step 2: Consider the risks of ending the apprenticeship early

Apprentices on a contract of apprenticeship

A traditional contract of apprenticeship can only be ended early in very limited circumstances. Ordinary misconduct, poor performance or a redundancy caused by a downturn in trade will not usually be enough.

If the contract is ended early without good reason, the apprentice may be able to claim damages for breach of contract. These can be substantial and may include wages for the rest of the apprenticeship, loss of training, loss of status and the effect on their future job prospects.

Apprentices on an apprenticeship agreement or employment contract

An apprentice on a statutory apprenticeship agreement is treated in the same way as an ordinary employee and does not have enhanced rights to damages if the apprenticeship ends early. Any damages for breach of contract are calculated in the usual way.

For a fixed-term contract, that is normally the wages for the rest of the term, unless the contract allows you to end it by giving notice, in which case it is the notice pay.

Unfair dismissal and discrimination

Whatever the contract, an apprentice may be able to bring an unfair dismissal claim, depending on their length of service and the reason for dismissal. Most employees currently need two years’ service, but this falls to six months from 1 January 2027.

Some dismissals are automatically unfair regardless of service, for example where the reason is whistleblowing, pregnancy or asserting a statutory right. Discrimination claims, including age discrimination, need no qualifying service at all.

Tribunals are also likely to expect more of an employer before accepting that dismissing an apprentice was fair. Losing an apprenticeship can affect a person’s ability to finish their training and qualify, so it may be more serious than losing an ordinary job. Our guide to fair reasons for dismissal explains the general rules.

Step 3: Follow a fair process

It can be tempting to skip a formal process and go straight to dismissal. Before acting, think about whether there is a risk of any of the claims described above. Even where the risk seems low, following a fair procedure, in line with the Acas Code of Practice on disciplinary and grievance procedures, limits your exposure to claims, protects your reputation and supports good working relationships.

Where the issue is performance rather than conduct, give the apprentice clear feedback, support and a fair chance to improve. Our employment solicitors can help with performance management, and our article on common mistakes in disciplinary proceedings highlights the pitfalls to avoid.

Remember too that the time limit for most employment tribunal claims is now six months, so a poorly handled dismissal can lead to a claim long after the apprentice has left.

Get advice before you act

Dismissing an apprentice can be more complicated, and more expensive if it goes wrong, than dismissing other staff. Our employment law advice for employers can help you choose the right approach.

To discuss your situation, book a free 30-minute consultation with our employment solicitors or call 0141 471 9166.