Policy Statement on Termination of Training Contracts
Law Society of Scotland February 2009
These are difficult times for both trainees and their employers. As a result of the economic downturn, the Society has been contacted by a large number of trainees and training employers seeking guidance
on whether a training contract can be terminated by reason of redundancy. Society Policy This brief policy statement sets out the Society's view of the position for both trainees and training employers on the subject. It is the Society's view that a Training Contract may not be terminated by reason of redundancy. However, any firm or trainee who is affected by these issues should seek legal advice and assess the potential risks and liabilities involved.
There are two key points to consider:
1. Some employers have entered into an employment contract with trainees as well as the training contract prescribed by the Admission as Solicitor (Scotland) Regulations 2001. Although not an
authoritative view, an Employment Tribunal in a recent case in England was in no doubt that a trainee solicitor's employment and training contracts were "indivisible" and that a trainee could not be dismissed from employment without having his or her training contract similarly terminated in accordance with
applicable regulation and the terms of the training contract. The training contract makes no provision for its termination. Regulation 16 of the 2001 Regulations makes provision for the Council of the Society to terminate a training contract but only in the particular circumstances provided for therein. The regulations make no provision for the termination of the Training Contract in any other circumstances.
2. We are of the view that a Training Contract is analogous to a contract of apprenticeship. The Employment Appeal Tribunal has held, in relation to a modern apprenticeship, that where any provisions of an employer's terms and conditions of employment were inconsistent with the terms of an apprenticeship, the provisions of the apprenticeship would prevail. The Society's position is that normal contract law applies to offers and acceptances of future traineeships. Steps to take The Society advises that in place of redundancy, an employer should consider different types of work for trainees if there is less client work available, such as assisting on reviews of transactional processes and case management and working on research, educational and knowledge management projects.
The Education and Training Department can give advice and assistance and also give guidance on trainee secondments, shared training contracts and assignation of training contracts. Please contact Katie
Meanley, Manager (Education and Training) in the first instance (katiemeanley@lawscot.org.uk
For coverage in the Firm Magazine click here.
For press coverage click here and here.
on whether a training contract can be terminated by reason of redundancy. Society Policy This brief policy statement sets out the Society's view of the position for both trainees and training employers on the subject. It is the Society's view that a Training Contract may not be terminated by reason of redundancy. However, any firm or trainee who is affected by these issues should seek legal advice and assess the potential risks and liabilities involved.
There are two key points to consider:
1. Some employers have entered into an employment contract with trainees as well as the training contract prescribed by the Admission as Solicitor (Scotland) Regulations 2001. Although not an
authoritative view, an Employment Tribunal in a recent case in England was in no doubt that a trainee solicitor's employment and training contracts were "indivisible" and that a trainee could not be dismissed from employment without having his or her training contract similarly terminated in accordance with
applicable regulation and the terms of the training contract. The training contract makes no provision for its termination. Regulation 16 of the 2001 Regulations makes provision for the Council of the Society to terminate a training contract but only in the particular circumstances provided for therein. The regulations make no provision for the termination of the Training Contract in any other circumstances.
2. We are of the view that a Training Contract is analogous to a contract of apprenticeship. The Employment Appeal Tribunal has held, in relation to a modern apprenticeship, that where any provisions of an employer's terms and conditions of employment were inconsistent with the terms of an apprenticeship, the provisions of the apprenticeship would prevail. The Society's position is that normal contract law applies to offers and acceptances of future traineeships. Steps to take The Society advises that in place of redundancy, an employer should consider different types of work for trainees if there is less client work available, such as assisting on reviews of transactional processes and case management and working on research, educational and knowledge management projects.
The Education and Training Department can give advice and assistance and also give guidance on trainee secondments, shared training contracts and assignation of training contracts. Please contact Katie
Meanley, Manager (Education and Training) in the first instance (katiemeanley@lawscot.org.uk
For coverage in the Firm Magazine click here.
For press coverage click here and here.