Hiring an Apprentice? Here's What Every Employer Needs to Know

Apprenticeships are a fantastic way to build skills within your business, contribute to your industry, and invest in the future workforce. But taking on an apprentice comes with specific obligations—and if you’re not across the rules, you could find yourself in breach of workplace laws.

Here’s a breakdown of what employers need to know when hiring an apprentice.

What Is an Apprentice?

An apprentice is someone employed under a formal training contract to complete a trade qualification—like carpentry, plumbing, hairdressing, or commercial cookery. Apprenticeships generally take between 1 to 4 years and involve a combination of:

• Paid work

• On-the-job training

• Off-the-job training through a Registered Training Organisation (RTO) such as a TAFE

  
  

They must be registered with your state or territory training authority.

Legal Requirements When Hiring an Apprentice

As an employer, you must:

• Enter into a formal training contract with the apprentice

• Register the contract with your state or territory training authority

• Provide a negotiated training plan, developed with your RTO, that outlines what will be taught, when and how

• Pay the correct wages in accordance with the relevant award or agreement

• Reimburse training fees and prescribed textbooks, unless exceptions apply

• Provide a safe, respectful and fair workplace

It’s also a legal requirement to give apprentices:

• A Fair Work Information Statement

• A Fixed Term Contract Information Statement (if applicable)

  
  

Paying Apprentices Correctly

Apprentice pay rates are set by the relevant award or registered agreement and depend on:

• The year or stage of the apprenticeship

• Whether the apprentice is considered an adult apprentice (aged 21 or over at commencement)

• Whether progression is time-based or competency-based

As a general rule:

• Apprentices must be paid for the time spent in training

• School-based apprentices receive a loading (e.g. 25% of their work hours) for training time

• Pay increases typically apply each year or when milestones are met

  
  

Hours of Work & Leave

Apprentices may be full-time or part-time, and their entitlements vary accordingly:

• Full-time: usually work 38 hours/week plus reasonable overtime

• Part-time: work regular hours below 38 per week, and receive pro-rata entitlements

• School-based: combine part-time work with school and training

All apprentices are entitled to the National Employment Standards, including:

• Annual leave

• Personal/carer’s leave

• Family and domestic violence leave

• Superannuation

• Public holidays and more

Paperwork Checklist

When employing an apprentice, make sure you provide:

• Training contract (registered with the state training authority)

• Employment contract or letter of offer

• Pay slip within one working day of payday

• Super and tax forms

• Workplace policies and induction information

• Training plan endorsed by your RTO

Keep accurate records of pay, hours, and leave—this is mandatory.

Avoiding Common Compliance Mistakes

Many employers unintentionally breach the law due to:

• Paying cash-in-hand

• Misclassifying apprentices as contractors (they must be employees)

• Not reimbursing training fees or textbooks

• Failing to provide required documentation

• Using “sham” arrangements without proper training registration

Always ensure your apprentice is formally recognised by the relevant training authority.

Final Word: Apprentices Are an Investment

Hiring an apprentice is a great way to strengthen your workforce and support skill development in your industry. But it’s not a “set and forget” process—it comes with real legal and training responsibilities.

By understanding your obligations upfront, you’ll set your apprentice—and your business—up for long-term success.

Need help drafting apprentice contracts, policies, or award classifications? Contact our HR team for practical support.