Hiring apprentices for residential builders

What it is

An Australian Apprenticeship in residential construction is a paid job that includes nationally recognised training toward a Certificate III qualification, usually CPC30220 Certificate III in Carpentry or another CPC trade. The employer, the apprentice and an Australian Apprenticeship Support Network provider sign a training contract that is registered with the relevant state or territory training authority. The contract sets the term of the apprenticeship, the qualification, the registered training organisation and the probation period.

Apprenticeships are competency based. The nominal term sits between three and four years in most residential trades, but the apprentice can progress through stages and finalise the training when they meet the competencies in the training plan.

Who can take on an apprentice

Any residential builder operating a lawful business in Australia can employ an apprentice, including sole traders, partnerships and companies. The employer must hold the right state or territory building licence for the work, meet workplace health and safety duties under the model Work Health and Safety laws or the equivalent state Act, and pay the apprentice under the relevant modern award. For most residential builders the applicable instrument is the Building and Construction General On site Award 2020 (MA000020) or a registered enterprise agreement.

How the process works

1. Decide on the trade and qualification. For residential carpentry this is usually CPC30220.
2. Choose an Australian Apprenticeship Support Network provider. The network handles the paperwork, registers the contract with the state training authority and helps the employer access incentive payments.
3. Choose a registered training organisation. The RTO delivers the formal training, either block release at a TAFE campus or a mix of online and on site assessment.
4. Sign the training contract. The contract has to be lodged with the state training authority within the statutory window, which is 28 days in NSW.
5. Probation. Apprenticeship contracts include a probation period of up to three months under most state schemes, during which either party can end the contract by notice.
6. On the job supervision. An experienced tradesperson supervises the apprentice and signs off competencies in the training plan.

Subsidies and incentive payments

The Australian Government runs financial supports for apprentices in priority housing trades. Eligible apprentices in carpentry, joinery, plumbing, electrical, glazier, locksmith and roof plumbing or tiling can receive payments at six, 12, 24 and 36 months and at completion under the housing apprentice incentive arrangements. Employer side wage subsidies are available in priority occupations and are paid quarterly across the first two years of the contract.

Supervision and mentor obligations

The training contract requires the employer to provide an experienced supervisor who can train, assess and sign off competencies. The Building and Construction General On site Award 2020 states that no apprentice or trainee can work overtime or shiftwork on their own or without supervision, and that apprentices under 18 cannot be required to work overtime or shiftwork. The supervisor does not have to be the business owner, but the business has to make sure someone with the right competence is on site with the apprentice every day.

Common pitfalls

• Paying junior wage rates instead of apprentice rates under the Building and Construction Award.
• Failing to release the apprentice for off the job training as set out in the training plan.
• Treating the apprentice as a subcontractor, which breaches the training contract and the sham contracting provisions of the Fair Work Act 2009.
• Missing the 28 day contract lodgement window in NSW, which delays incentive eligibility.

When to engage support

Engage an Australian Apprenticeship Support Network provider before the apprentice starts work. The network can confirm eligibility for housing apprentice incentives, set up the training contract, nominate the RTO and lodge everything with the state training authority. These services are funded by the Commonwealth and free for employers and apprentices.