A traditional contract of apprenticeship usually states that it will run for a specified length of time or until the apprentice reaches a certain standard. The contract then ends automatically when that period ends or the standard is reached.
The contract may include an express term allowing the company to terminate the contract early in certain circumstances, which could include redundancy. If there is no such term, the company is entitled to terminate the contract for redundancy only where the redundancy has arisen because the business has closed down completely or has fundamentally changed in nature. If an apprentice's contract is terminated prematurely in breach of contract, the apprentice is entitled to damages reflecting not only his or her lost wages for the balance of the apprenticeship but also the value of his or her lost training and the reduction in his or her future employment prospects. For a summary of employment status of modern apprentices, see employment status.
It should be borne in mind that apprentices, whether modern or traditional, have the same statutory employment rights as employees. This means that they are entitled to claim unfair dismissal if the company fails to follow the statutory minimum dismissal procedure or acts unreasonably in terminating their contract for redundancy, provided they have one year's service. They may also be entitled to a redundancy payment, if they have been with the company for two years or more.