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I think you misunderstand the rule as it is not a grace period but only that where new employment has commenced within 30 days the ESFA do not expect a withdrawal to be recorded on the ILR.
The rational behind this change in the rule is that where there is a change of employer and the start with the new employer is arranged within 30 days (a month) then the funding period will be covered from DAS.
It is up to you to establish if this is the situation when their employment is terminated otherwise you should withdraw the learner as normal.
P290 An apprentice must be employed continuously for the duration of the apprenticeship. If their employment is terminated, the individual cannot continue with their off-the-job training (with the exception of redundancy).
P290.1 When employment or an apprenticeship agreement has ended (resignation, dismissal or any other action by the apprentice or the employer that results in the apprenticeship agreement ending, with the exception of redundancy) and new employment has commenced within 30 days we do not expect a withdrawal to be recorded.
P290.2 When employment or an apprenticeship agreement has ended (resignation, dismissal or any other action by the apprentice or the employer that results in the apprenticeship agreement ending, with the exception of redundancy) and new employment hasn’t commenced within 30 days, you must manage this using a withdrawal to ensure funds are not paid when the apprentice is not employed, in line with rules P339 to P341.
HTH
Eleanor Spence
Employment end 30 day rule
Created
When a learner has left employment and enters into the 30 grace period, does the employment status have to be changed to unemployed, as with redundancy, whilst they are looking for other employment? Also, can we continue to work with the learner on their qualification as long as it's not OTJ training?