New Apprenticeship Regime Using the UVAC Template Contract UVAC Workshop – Sheffield Hallam University – 12 June 2017

NWL Legal Focus In-house legal team at North West Leicestershire District Council Provide legal services externally under Local Authorities (Goods and Services) Act 1970 Other local authorities FE Colleges “Public Bodies” Benefits Maintains high quality in-house legal team Lower cost legal services available to external clients Services Property Planning Litigation (civil and regulatory prosecutions) Commercial/Procurement

Apprenticeship Contracts The New Structure Employers pay Apprenticeship Levy to Skills Funding Agency (SFA) FE colleges become “Providers” of education services to Employers SFA pays Providers out of Levy funds Employers enter into a Contract for Services with Providers Skills Funding Agency Employers Providers Funding Agreement Levy Agreement Contract for Services

SFA Funding Rules Requirements for contracts New rules apply from 1 May 2017 Colleges become “main providers” Must comply with the Funding Rules, the Funding Agreement and the Individualised Learner Record (ILR) Specification Must have a Contract for Service (Provider/Employer)

SFA Funding Rules What do the Funding Rules say about Service Contracts? Contract must require payment by Employer (Clause 6.1) Employer to select assessment organisation (Schedule 1) Dealing with learner complaints (Clause 7) Minimum duration of an apprenticeship is 1 year at 30 hrs per week (including off the job training) (Clause 4.1.1 and 4.1.7) Monitoring workplace practice (Clause 4.2.3) Breaks in learning/unemployment/redundancy (Clause 4.1.5 and 10) Details of sub-contractors (Schedule 1) Documentary evidence held by employer (Clause 4.1.2)

Structuring a Services Contract Standard Terms and Conditions Specification and Costs Schedule

Terms & Conditions

Terms & Conditions Using the UVAC Template Top Sheet Parties Expiry Date (Longstop) (Clause 2) Fixed/Multiple Apprenticeships (Clause 5) Training Provider Administration Service Schedules List of Apprenticeship Programmes Mandatory Policies College’s Own Complaints Procedure

Terms & Conditions Training Provider Obligations Deliver training in accordance with the specification (Clause 3.1.1) Compliance with Funding Rules (Clause 3.1.3) Contracting with assessment organisation (Clause 3.2) Dealing with learner complaints (Clause 7) First contact points Apprenticeship Helpline

Terms & Conditions Employer Obligations Employ and pay the apprentice for duration of apprenticeship (Clause 4.1.1) Complete Apprenticeship Agreement (Clause 4.1.3) Confirm eligibility (Clause 4.1.6) Offer relevant hours of work (Clause 4.1.7(a)) Allow 20% off the job training (Clause 4.1.7(c))

Terms & Conditions Employer Obligations Provide any training/experience allocated to them in the Specification (Clause 4.1.4) Comply with Employer’s Funding Agreement (Clause 4.1.8) Assist with Provider’s compliance with Funding Rules (Clause 4.1.2) Supply documentary evidence held by Employer (Clause 4.1.2, 4.1.6 ad 4.1.7)

Terms & Conditions Keeping Evidence (P211.1-211.28) Contract for Services (Provider/Employer) Signed Commitment Statement (Apprentice/Provider/Employer) Apprenticeship agreement (Apprentice/Employer) Details of 20% training and how it will be delivered Employer to evidence to you that apprenticeship completed during working hours Evidence of the individual’s eligibility Evidence that apprentice is employed by the employer, the job role and location of work Evidence that employer has less than 50 employees (if that is the case) Initial English and Maths assessments Evidence of entitlement to additional payments (under 18s, has an EHC Plan, comes from deprived area, a looked after child)

Terms & Conditions Other Key Terms Payment (Clause 6) Dispute resolution (Clause 7) Termination (Clause 8) Material breach Conviction Insolvency Reputational risk to College SFA Funding Agreement terminated

Terms & Conditions Other Key Terms Indemnities and limits of liability (Clause 12) Reasonable caps based on value of contract/risk No exclusion for death or personal injury Insurance (Clause 12.4) Safeguarding (Clause 13) Health & Safety (Clause 14) Confidentiality (Clause 15) Intellectual Property (Clause 16) Data Protection/Freedom of Information (Clause 17) Equality Legislation (Clause 18) Contract Variations (Clause 19)

Specification – Schedule 1

Specification Specification – Schedule 1 Training to be delivered and standards to be met Duration (start/end dates) Location of delivery and use of assets/equipment Number of Apprentices Training to be delivered by Employer Identity of Assessment Organisation Use of sub-contractors Conflicts of Interest Details of English, Maths and IT provision Details of aspects that are/are not eligible for funding

Specification Specification and Sub-Contracting Use of subcontractors must be agreed at start State what training/assessment to be delivered by Provider/sub-contractor and cost of each Funding kept by Provider for managing sub-contractors details of support given to them in exchange Provider’s proposed monitoring of sub-contractors Any conflicts of interest between Provider and the sub- contractor

Specification Managing Sub-Contractors Must have written agreement in place with sub- contractors Regularly monitor sub-contractors for quality-assurance Must get legal advice on compliance with Public Contracts Regulations 2015 in buying in training services Provider remains responsible for delivery and quality No sub-sub-contractors Must return Delivery Sub-contractor Declaration to SFA Subcontractors have their own eligibility rules (P125) Must carry out DD on sub-contractors so you know they can deliver and make this available

Costs Schedule – Schedule 1

Costs Schedule Payment Cost of taking part negotiated between Employer, Training Provider and Assessment Organisation If cost exceeds maximum funding for that apprenticeship’s funding band then Employer must pay the difference Must include cost of Assessment Organisation and sub- contractors in price agreed with employer Contract must require Employer to pay full cost Payment Schedule VAT can be charged on sums paid by the Employer that exceed the Funding Band. Training paid for by government funding is exempt from VAT.

Further Documents Other Contracts in the structure Contract with Sub-Contractors Contract with Assessment Organisation (P114) Commitment Statement

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