Tracy Clement

Providers charging??

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I have been asked by an employer who uses a couple of Apprentice Providers who have clauses in contracts that they are not sure are legal or ethical. I have never come across this before.

Where an apprentice withdraws within 42 days they are being charged an admin fee of £650.00.

Where a minimum cohort drops below the minimum they are being commercially charged for the entire programme duration.

Is this even vaguely allowed or common practice?

Many thanks

Replies

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Steve Hewitt

Ooft... Well I've never heard of either of these two delightful things before.

First one is cheeky, but not explicitly against any Rule I can think of.

Second one seems dodgier. Are they claiming funding for a bit when the group size is OK and then switching it off halfway through (and paying it back? or?), or just asking the employer for a greater contribution? The second thing doesn't seem dreadful, but...

To be clear, I'd run a mile from any provider with either of these clauses in their contract, but how is a new employer going to know that it's not standard?

Tracy Clement

Thank you! Glad not just me that was surprised.

Group cohort of ten and will only accept a minimum of 50% so five from an employer.

Then one leaves so they have claimed up to that point from the levy.

For the one that leaves they then charge a full commercial charge for the remainder that they can no longer claim for from the levy.

Steve Hewitt

Oh right! I've heard of this a couple of times, charging for the rest when someone withdraws. It's definitely bad practice, but unsure what the Agency would think of it (I'd imagine they'd be against it...)

Ben Cowdery

Oh Dear.  These providers run the risk of making a reasonable profit by introducing commercially-sensible safeguards such as these - nasty Business! (Tongue firmly in cheek). I have actually come across the admin charges for withdrawals before a couple of times. As long as it's clear in the TSA and the costs can be cross-refenced with the TNP cost breakdown I am not sure it's that unreasonable for leavers before 42 days myself. Discuss.  :)

Steve Hewitt

I mean, kinda...

Not in favour myself but I doubt you'd ever get the Agency to say "Thou Shalt Not" until someone goes daft with it and it becomes a "scandal" (or, eg, when an employer makes the employee pay for it?) and then it will be banned...

Sort of interesting now "initial assessment" is an eligible cost (although how many have bothered costing it in given the failure of the rates to increase), but £650 seems toppy...