Claire Piper

Small employer indicator

Created

Our auditor is telling us that we have to tick the small employer indicator even if the apprentice is not eligible, i.e. 16-18 years old or eligible 19-24 year olds. I am quite sure this is not correct. Anyone else experienced this? 

 

 Thanks

Replies

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Steve Hewitt

To what purpose? It's not going to generate any money so why would an auditor care?

Pedantically, annoyingly, the ILR spec says "record for all FM36" but also, how would you even know because there's no point asking the employer for a non-eligible learner?

 

Ruth Canham-James

I'd argue that one! ILR Spec says;

Reason required

To establish employer eligibility for apprenticeship funding.

If the student is not 16-18 (or 19-24 and EHCP), then it's not establishing employer eligibility.

We definitely don't record as small unless they're actually eligible for the co-investment waiver. It's critical to my validation process!

Steve Hewitt

(also, to be fair, if this is the kind of nonsense your auditor is spending their time on then you are having A VERY GOOD AUDIT because they've not found anything more important to complain about)

Martin West

Only if the employer has made a small <=50 employee declaration that applies to the learner.

Where an individual Apprentice takes the number of employees to over 50 then you would not record an SEM irrespective of age.

From the ILR specifications

To identify whether the employer recorded in the Employer identifier field is a small employer as defined in the funding rules.

The small employer indicator is only required, where applicable, for learners in paid employment on an apprenticeship standard programme.

HTH

Claire Piper

Martin West thank you for your reply. Are you saying that we should be ticking small employer for all those with less than 50 employees irrespective of if the apprentice is 16-18 or 19-24 with an EHCP or a care leaver? 

 

Many thanks 

Martin West

The auditor is incorrect it only applies where applicable see ILR specification:

To identify whether the employer recorded in the Employer identifier field is a small employer as defined in the funding rules.

The small employer indicator is only required, where applicable, for learners in paid employment on an apprenticeship standard programme.

So you have to consider both in bold in the above, as an example it would not be applicable if at the time the apprentice starts there is over 50 employees (not a small employer as defined in the funding rules) but learners who started previously where it was less than this would be flagged as SEM where it is applicable (16-18 or 19-24 with an EHCP).

HTH

Darren O'Neill

Hi,

We have a learner who started their L2 apprenticeship age 18 and was employed by a small employer (less than 50 employees), therefore the small employer indicator was included in the ILR.
 
The learner achieved the L2 and progressed onto the L3 Apprenticeship with the same employer, however by this point the learner as over 16-18 so the small employer indicator was not included in the ILR on the L3.
 
The issue we have is that the 24A-103 PDSAT is showing a small employer indicator for both the L2 and L3. Does anyone know the reason for this?
 
Thanks

Ruth Canham-James

Darren O'Neill You have to close the old employment record and open a new, almost identical, one. It will just have a new start date and no SEM flag, as that flag is attached to Employment Status Record.

Also, just a tip, when you reply to an old thread, only the people who subscribed to it (usually just the people who replied) will get notified of your question. If you want a bigger audience, you have to create a new thread 😊 

(Edited)