Taking on an apprentice can be a massive win for your business. You get to train someone up in your systems, build capability in your team, and create a long-term pipeline of skilled staff.
But apprenticeships aren’t just a “handshake and a toolbox” arrangement. To protect both you and the apprentice (and to keep things running smoothly when deadlines hit, schedules change, or performance issues come up), you’ll want the relationship clearly documented from day one.
This 2026 update reflects current New Zealand employment expectations and the practical reality that apprenticeships are often a mix of on-the-job work, formal training, and assessments - all of which should be properly captured in writing.
So, what exactly is an apprenticeship agreement, what should it include, and how does it fit alongside an employment agreement?
What Is An Apprenticeship Agreement?
An apprenticeship agreement is a written agreement that sets out the key terms of an apprenticeship arrangement - usually covering how the apprentice will be employed, trained, supervised, assessed, and progressed toward a qualification.
In practice, “apprenticeship agreement” can refer to two things:
- The employment relationship between you (the employer) and the apprentice (for example pay, hours, leave, conduct and workplace policies).
- The training relationship (for example the qualification, training provider, assessments, required evidence, and what happens if training milestones aren’t met).
Sometimes these elements are combined into one document. Other times, they’re split across:
- an employment agreement (which is required in New Zealand for employees), and
- separate apprenticeship/training documentation with the relevant industry training organisation or provider.
The key idea is simple: an apprenticeship is still work, so you’re still dealing with employment law - but there are additional training-specific expectations that you should document clearly to avoid misunderstandings later.
Is An Apprentice An Employee In New Zealand?
In most cases, yes - an apprentice is an employee. That means the usual employment obligations apply, including minimum entitlements, good faith obligations, and having a written employment agreement in place.
If your apprentice is an employee, you’ll typically need an Employment Contract that covers the core terms of employment.
That contract is important even if the apprentice is also signed up with a training provider, because training paperwork doesn’t always deal with the practical, day-to-day realities of employment (like rosters, overtime, confidentiality, use of tools, or what happens if someone doesn’t show up).
Why This Matters For Your Business
If you treat an apprentice informally (for example, without a proper written agreement), you can accidentally create risk around:
- Pay disputes (including what counts as paid time: training time, travel time, study time).
- Unclear expectations about the apprentice’s responsibilities versus what should be supervised work.
- Performance issues where there’s no clear framework for feedback, improvement plans, or consequences.
- Termination risk if the relationship ends and there’s disagreement about whether it was handled fairly.
Getting the paperwork right early is one of the easiest ways to protect your business while still giving the apprentice a real opportunity to succeed.
What Should An Apprenticeship Agreement Include?
A good apprenticeship agreement (or an employment agreement plus apprenticeship addendum) should be tailored to the role, the industry, and the training pathway. Templates can miss key details - and those details are usually what cause issues later.
Common clauses and topics to include are:
1) Parties, Role And Start Date
- Legal name of the employer and apprentice
- Job title and a clear description of duties
- Start date and (if relevant) whether there is a trial period or probation
2) Hours Of Work And Work Location
- Normal days/hours (and what “reasonable overtime” means in your business)
- Where the apprentice will usually work (site, workshop, client locations)
- Requirements for travel between sites (and whether it’s paid)
If your workload is seasonal, or you’re likely to adjust rosters, it can also be worth thinking ahead about how changes to hours are handled so you don’t end up in a dispute later about reduced shifts or availability.
3) Pay, Reviews And Progression
- Wage/salary and how it will be paid
- Any tool allowance, phone allowance, or reimbursement process
- Whether pay increases are tied to time served, competencies, or training milestones
- When pay will be reviewed (for example every 6 or 12 months)
Clear pay progression terms can be especially helpful in apprenticeships, because both sides often expect wages to rise as competency increases - but assumptions don’t hold up well if the relationship becomes strained.
4) Training Plan And Provider Details
- The qualification the apprentice is working toward
- The training provider / programme details
- Expected timeframe to complete the apprenticeship
- What training occurs during paid work hours versus outside work hours
This is where apprenticeships differ from many other roles: you’re not just employing someone to “do a job”, you’re employing someone to learn a job while contributing to the business.
5) Supervision, Safety And Competency
- Who supervises the apprentice day to day
- What tasks require direct supervision
- Safety obligations and required PPE
- Rules around using machinery, vehicles, and customer sites
Health and safety is a big part of apprenticeship arrangements, particularly in trades and high-risk environments. Make sure your processes reflect the Health and Safety at Work Act 2015, including training, supervision, and reporting hazards and incidents.
6) Assessments, Record-Keeping And Time Off For Training
- How competencies are assessed and recorded
- Who signs off workplace evidence
- What happens if the apprentice falls behind in assessments
- Whether study leave is available (and on what terms)
This is also a good time to be upfront about practical expectations - for example, submitting coursework on time, attending block courses, and keeping a logbook updated.
- What tools you provide versus what the apprentice provides
- Who pays for lost/damaged tools (be careful here - deductions have rules)
- Return of property on resignation/termination
8) Confidentiality And Client Relationships
Even apprentices can be exposed to sensitive information like pricing, supplier terms, customer lists, and internal processes. A confidentiality clause sets expectations clearly and helps protect your business if the apprentice later moves to a competitor or starts their own operation.
Depending on your industry and seniority of the role, you may also consider restraint clauses - but these need to be reasonable and tailored to be enforceable.
9) What Happens If Things Don’t Go To Plan?
This is the part many businesses avoid, but it’s one of the most important.
Your agreement should address scenarios like:
- the apprentice failing to attend training or repeatedly missing assessments
- serious misconduct (for example unsafe behaviour on site)
- performance concerns and how they’ll be managed
- what happens if the training programme changes or funding changes
- ending the apprenticeship early (and the process you’ll follow)
Even when termination is on the table, you generally still need a fair process. If you want to end employment, you’ll want to follow a proper process and ensure you’re meeting your obligations around notice (or potentially Payment In Lieu Of Notice where it’s appropriate and permitted).
How Is An Apprenticeship Agreement Different From An Employment Agreement?
Think of it like this:
- An employment agreement is about the legal relationship of work: pay, hours, leave, duties, conduct, notice, and policies.
- An apprenticeship agreement focuses on the training pathway: supervision, assessments, course attendance, and qualification progress - while still needing to align with employment law.
In many workplaces, the cleanest setup is:
- a solid written employment agreement; and
- a training plan or apprenticeship addendum that specifically covers the apprenticeship elements.
This approach avoids overloading one document while still ensuring all the key expectations are covered.
If you already have standard employment documents in place, you might only need to adjust them to suit an apprentice role (for example training obligations and supervision requirements). If you’re hiring for the first time, it can help to start with a properly drafted Employment Contract and build from there.
Do You Need A Written Apprenticeship Agreement?
As a general rule, you should assume you need written documentation for both the employment side and the apprenticeship/training side.
From a practical perspective, a written agreement matters because it:
- sets expectations early, before anyone is stressed, busy, or frustrated
- reduces “he said, she said” disputes about pay, hours, training time, and responsibilities
- supports performance management because expectations are documented
- helps prove your process was fair if the relationship ends and is later challenged
It also protects the apprentice, because it clarifies what support and training they should expect from you - which is a core part of what makes an apprenticeship an apprenticeship.
What If You’re Using A Training Provider’s Documents?
That’s common, and often necessary. But training provider documents may not cover key employment terms (or may only cover them at a high level).
So even if the apprentice signs training documentation, you still want an employment agreement that fits your workplace, your role, and your risks.
Common Mistakes Employers Make With Apprenticeships
Apprenticeships usually break down for predictable reasons - and the legal issues often come after the relationship has already soured.
Here are some common traps we see employers fall into:
1) Treating The Apprentice Like A Casual Helper
If you’re relying on the apprentice as cheap labour without proper training time, supervision, and progression, it’s not just a people problem - it can become a legal risk too. Apprenticeships should be structured, not ad hoc.
2) Being Vague About Paid Training Time
Be clear about when training occurs, whether it’s paid, and what happens if training is scheduled outside normal hours. Uncertainty here is a fast track to wage disputes.
If the apprentice isn’t meeting expectations, it’s tempting to “just have a chat” and hope it improves. Sometimes it does. But if it doesn’t, you’ll wish you documented expectations, warnings, and support steps early.
4) Confusing “Apprenticeship Ending” With “Employment Ending”
Training arrangements can change (or end) without automatically ending employment. Conversely, terminating employment usually needs a fair process, even if the training relationship is struggling.
5) Not Updating Agreements As The Apprentice Progresses
As your apprentice becomes more competent, your risk profile changes. They may gain greater autonomy, access more client information, drive vehicles, or handle equipment unsupervised. Make sure your documents and policies keep up.
If your apprentice will have access to sensitive information or customer data (for example through job management systems), it can also be worth ensuring your broader privacy compliance is in order, including having a Privacy Policy where relevant.
Key Takeaways
- An apprenticeship agreement documents both the employment relationship and the training pathway, so expectations are clear from day one.
- Most apprentices are employees, which means you’ll generally need a written employment agreement that covers pay, hours, leave, conduct, and notice.
- A strong apprenticeship arrangement should clearly address training obligations, supervision, assessment requirements, paid training time, and how progression works.
- Health and safety obligations are especially important in apprenticeships, particularly in trades and higher-risk workplaces.
- Clear documentation helps prevent disputes about pay, training time, performance expectations, and what happens if the apprenticeship ends early.
- Generic templates often miss apprenticeship-specific risks, so it’s worth getting the agreement tailored to your role and industry.
If you’d like help putting an apprenticeship agreement (and supporting employment documents) in place, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.
