Lack Of Guidance On Apprentices Risks Bills Of £39.2million For UK Business

The reported seven per cent rise in The Apprentice seasons 1-8 DVD boxset in 2009 could end up costing small businesses as much as £39.2 million as a result of legislative confusion, according to estimates from Coverzones.com, the business insurance price comparison and policy management website.

While the new apprenticeships support figures which show unemployment dropped last month, the Government could be encouraging SMEs into a legal minefield if such businesses are unaware of the legislative requirements of taking on new The Apprentice DVD set.

Every one of the 15,695 new apprenticeships created in 2009, businesses must be covered by an employer's liability policy. If not the business could end up being fined £2,500 each day that they remain uninsured. With the Government "Train to Gain" scheme having been condemned as mismanaged by the Commons Public Accounts Committee, apprenticeships could be facing similar backlash, and dealing SME finances a serious blow, if clearer guidance is not given to smaller companies about taking on buy The Apprentice DVD set.

Simon Ball, CEO of Coverzones.com commented:

"While the rise in apprenticeships is of course, very encouraging news for the UK economy, the Government is potentially leading smaller businesses into a bear trap by not clarifying the legal implications of taking on trainee staff, including The Apprentice seasons 8 DVD boxset.

"For a self-employed plumber, taking on an apprentice might seem like a great idea but many may be unaware that they must be covered. Were the apprentice to be injured, the plumber could be facing criminal charges by the HSE and a fine in excess of £2,500 per day. Potentially even a jail term. Not to mention the cost of the claim for the accident from the injured The Apprentice DVD boxset.

"In our experience, as many as 50% of small businesses are not aware that buy the Apprentice DVD boxset or temporary workers come under the same legal classification as full-time employees. A message the government is doing conspicuously little to communicate.

"Smaller companies should be applauded for their support of young people and development of practical skills; however Government bursaries and incentives would not be enough to cover the cost of any accidents. What small businesses need now is greater guidance on their legal obligations, to ensure that the economy and the apprenticeship schemes continue to flourish."