Rachel Dennis

Change of Employer from Levy to Non Levy

Created

If an apprentice was employed by a Levy paying employer and has been made redundant (with more than 75% of the apprenticeship to complete), if any new employer is not Levy paying, do they still need to co-invest the 5% (of the negotiated new / residual price)?

Also, if using the 'Change of Employer' function on the DAS / App Service, would the new employer need to make a new funding reservation?

Thank you

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Ben James

Yes and yes (if they're non-levy). 

133. Reservations can only be used for:

133.1.  New apprenticeship starts; and

133.2.  Re-starts where the apprenticeship was previously funded via contracted provision and following redundancy, or provider failure, needs to be funded via a reservation to allow an apprentice to continue / complete their apprenticeship with a new employer.  

134. Reserved funds are classed as government-employer co-investment and all rules associated with government-employer co-investment must be followed when using reserved funds; please see paragraphs 141 to 146.  

135. Providers cannot submit an ILR where funds have not been reserved for a start or re-start and a commitment has not been made for an apprentice, with matching details.  

...

234.2.1 Where the provider is a main provider: If the apprentice finds a new employer where they can complete their apprenticeship, then the new employer assumes all outstanding liabilities and benefits from that point. The main provider must negotiate a new price, if required, with the new employer and input this on the ILR. 

Worth noting that reservations can now be backdated by a month

Rachel Dennis

Thanks Ben.