Apprenticeships 101: what you need to know about hiring an electrical apprentice

AACs, RTOs, GTOs, RPL, VET - the jargon surrounding Australian apprenticeships is enough to confound even the savviest operator. Fortunately there’s plenty of assistance available to help employers navigate the complicated world of apprenticeships.

There are two ways to engage an apprentice: either through a group training organisation (GTO) or through your business.

Outsource your apprenticeship

Using the services of a GTO is an easy way to engage an apprentice. The GTO actually employs the apprentice, while your company ‘hosts’ them. The GTO takes care of all the paperwork, wages and associated costs while your business pays a management fee for the service.

Employing through a GTO is a good option for small to medium businesses that might not have enough work for a full-time apprentice or simply don’t have the time to handle the administrative side of things. GTOs can arrange for you to share an apprentice with another business if you don’t have enough work for an ongoing or full-time position.

The only downside to going through a GTO is that your business is not entitled to any government incentives as you are not officially the employer. You will be covered, however, if you find that you don’t have enough work for your apprentice or your circumstances change, in which case the GTO is responsible for finding alternative employment for the apprentice.

DIY apprenticeship

If you decide to employ an apprentice yourself you’re not on your own either. The federal government funds Australian Apprenticeship Centres (AACs) that offer a support service to all employers.

“The AAC service is free,” said Linda Nall, Group Marketing Manager for MEGT. “AACs will take care of everything from commencement to completion.”

AACs can also help you find an apprentice by advertising the position and forwarding the applications on to you, Nall said. Once you’ve found your apprentice, an AAC representative will come to you and complete the apprenticeship sign-up.

From there, they’ll help you access all your entitlements. Employers can receive up to $12,350 in government incentives for electrical apprenticeships. AACs will also help manage the ongoing administration of the apprentice’s training. If you employ an apprentice directly, you’re responsible for taking care of wages, superannuation and other related costs, as with any other employee.

Although the apprenticeship system seems confusing and daunting, whether you decide to go with a GTO or employ an apprentice yourself, you’ll be supported along the way.

“Employing an apprentice can initially seem like a complicated exercise but the federally funded Australian Apprenticeship Centres (AACs) exist to make the process very smooth,” said Nick Debere, VERTO Chief Operating Officer.

“AACs like VERTO manage the administration of the apprenticeship, advise on what incentives are available and how to claim them and then make regular contact visits over the time of the apprenticeship to ensure it’s all going smoothly. We also have links to mentoring programs, scholarships and other support services to help employers and apprentices through the training period.”

The fine print

Whether you go with a GTO or hire an apprentice yourself, there are several things you’ll need to do. You must have a valid training contract registered with your state or territory training authority. The contract protects both the employer’s and the apprentice’s interests and outlines your obligations and your apprentice’s obligations to you.

Don’t worry - you don’t need to be a lawyer to organise a training contract. Once you’ve found your apprentice, get in touch with an AAC and they’ll arrange the paperwork for you. If you’re going through a GTO, they’ll automatically take care of this for you.

Your AAC will also help you select a registered training organisation (RTO). As an employer of an apprentice, you’re allowed to select the RTO of your choice. You can also negotiate how, when and where the training is delivered so you can tailor the training to suit your needs.

The training contract sets out all the rights and obligations of both the employer and the apprentice. As an employer, your key obligations are to:

• Ensure your apprentice has access to the full range of work required to develop the skills and industry knowledge they need on the job.
• Provide a qualified or experienced person to facilitate training and supervise the apprentice in the workplace.
• Allow your apprentice time off work with pay to undertake training and assessment delivered by the RTO.
• Observe your apprentice’s progress and confirm they are developing the required skills and knowledge by liaising regularly with the RTO and keeping records up to date.
• Ensure your apprentice is covered by your workers compensation policy for the duration of their training contract.
• Pay your apprentice the award rate, at a minimum.

Get a Kickstart

As an added incentive to sign up an apprentice, the federal government has launched the $57.5 million Kickstart initiative, which means an extra $3350 for employers who take on an apprentice between 1 December 2012 and 28 February 2013.

The Kickstart incentive is only available for trades that appear on the National Skills Shortage List, and it’s available only for the first 21,000 sign-ups - so you’d better get your skates on if you’re keen on the extra funding.

For more information on AACs, GTOs and the Kickstart initiative, visit www.australianapprenticeships.gov.au.