Stream: Learning through unions

What do I need to know about Apprenticeship Training Agencies (ATAs)?

ATAs (Apprenticeship Training Agencies) are a hot topic in the world of apprenticeships. They are based on an employment agency model of apprenticeship training which has its roots in the Australian apprenticeship system.

Due to the casualised nature of the relationship between the employer and the apprentice, ATAs are a cause for concern for many unions. The TUC has been working with the National Apprenticeship Service (NAS) to ensure that the ATAs which have received government funding are properly monitored and evaluated and offer a good deal to apprentices in terms of pay, conditions, job security and employment prospects.

What is an ATA?

An Apprenticeship Training Agency (ATA) is an employment agency for apprentices. It directly employs and manages individuals who undertake their apprenticeship with an approved training provider whilst being hired out to 'host employers'. The ATA outsources the training activity for the apprenticeship to training providers.

Is it different to a Group Training Association (GTA)?

Yes. A Group Training Association (GTA) is a not for profit organisation providing support on accessing and managing training for a group of employers to encourage their involvement in Apprenticeships*. The crucial difference is that an ATA employs the apprentice whereas a GTA just offers training to apprentices who are employed directly by an employer.

How many ATAs are there?

In 2009 the government announced £7m funding for 12 ATAs. Since then the government has given additional funding to several more ATAs.

Less is known about non-government funded ATAs. Changes to funding for further education and vocational training may mean that this model becomes more attractive and we will see more ATAs starting up. There is currently no way of identifying where new, non-government funded ATAs are.

Where are the government funded ATAs?

The first twelve pilots are here:

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What sectors do ATAs operate in?

ATAs are operating in a wide range of sectors. If you would like help identifying whether there are ATAs operating in your sector or region, please contact apprenticeships@tuc.org.uk.

What should I be looking out for if my employer is using an ATA?

A direct employment relationship between an employer and apprentice will always be preferable to casualised, agency labour. If you know that your employer is employing apprentices through an ATA, you should ask the following questions:

Are the apprentices employed through the ATA receiving the right rate of pay?

If you know of apprentices in your workplace or union who are employed through an ATA, you should make sure that they are receiving the appropriate rate of pay. The current minimum rate for apprentices who are not eligible for the minimum wage is £95 However, unions should always seek to agree higher rates of pay. At £95 per week, apprentices are not eligible to pay National Insurance contributions or to receive Statutory Sick Pay (SSP) or Statutory Maternity Pay (SMP). It is therefore important to negotiate a higher rate.

Furthermore, it is crucial that ATAs respect existing sectoral pay agreements. For example, in the construction sector, apprentices employed by an ATA should be paid the rate for the job set out in the relevant collective agreements, rather than £95 per week.

Are the apprentices employed by the ATA able to get union representation/access?

If you have apprentices in your workplace employed via an ATA, you should check whether they have had access to a union and offer them information on how to join the appropriate union.

Your union's organising officers may be able to approach the ATA directly and get access to apprentice induction sessions.

If you or another rep/officer from your union has tried to engage with an ATA and been refused access, please contact the TUC via apprenticeships@tuc.org.uk

Is the ATA apprenticeship high quality?

It is important that the quality of apprenticeships offered by ATAs is monitored. If you believe there are any issues with the quality of apprenticeships being offered by an ATA in your sector, you should notify the TUC who will ensure that NAS are made aware of the issue.

A high quality apprenticeship experience would include sufficient time off the job for training, adequate workplace supervision, mentoring, and, at the very minimum, should meet all of the requirements of the Specification for Apprenticeship Standards in England (SASE).

Does the ATA comply with Employment Agency standards?

ATAs are essentially employment agencies. They are defined as Employment Businesses and Employment Agencies under sections 13(2) and 13(3) of the Employment Agencies Act 1973. One key point arising from this is that ATAs may be inspected by the Employment Agencies Standards Inspectorate.

What are the apprentice's prospects of employment?

ATAs should endeavour to place apprentices with 'host' employers who are likely to take them on as employees after they have completed their apprenticeship. ATAs should also provide support for apprentices in seeking employment. This might include job searching skills, CV writing skills, interview technique skills, networking events, and agreements with local employers who may be in a position to recruit.

Is there a genuine rationale for not employing apprentices directly?

If your employer is taking on apprentices through an ATA, you should check that there is a good reason to do so.

ATAs should only offer services to employers who genuinely could not take on apprentices themselves due to the nature of their business or concerns about the future viability of the business. For example, SMEs* or Micro employers who could not guarantee security of employment for an apprentice for the duration of their apprenticeship if they were to recruit them directly. Large employers should recruit and employ apprentices directly. This applies to public as well as private sector.

You should also check that agency apprentices are not being used to substitute for other jobs (i.e., do work which was done by another employee or by a function which is being made redundant).

What is the employment relationship between the ATA and the apprentice?

You should check whether the apprentice employed through an ATA has a contract of employment. All apprentices are entitled to a contract of employment. An ATA should not be using 'self employed' apprentices. Young and often vulnerable apprentices should not be subject to the weaker employment rights afforded to self-employed individuals (e.g. with regard to sick pay entitlements, collective bargaining, maternity/paternity leave and pay entitlements).

What is the relationship with parents/guardians of minors?

It is best practice to seek the parent or guardian's consent when employing apprentices under the age of 18.

Where to go for more information or advice

Check the unionlearn website for further updates or contact the TUC at apprentices@tuc.org.uk with the word 'ATA' in the subject heading.

Check the NAS website at www.apprenticeships.org.uk
Contact the Pay and Work Rights Helpline on 0800 917 2368

Briefing document (1,200 words) issued 19 Aug 2010

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Telephone 020 7079 6920
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printed 12 February 2012 at 23:35 hrs by 38.107.179.210