Employment Status: University Sponsorship Contracts

It is not uncommon for a business to sponsor students to advance their training, particularly where there is an expectation (or commitment) that the student will work for the company at the end of the course.

An Employment Appeal Tribunal (EAT) decision has confirmed that these types of arrangements are unlikely to be considered to be contracts of employment if the primary purpose of the arrangement is training and education.

In this case, the EAT had to consider whether a contract to sponsor a former apprentice during a university degree was a contract of employment entitling him to claim unfair dismissal, or a contract
which would not give him statutory employment rights.

The EAT held that there was no dismissal when the sponsor refused him full-time employment following his withdrawal from the degree.

This checklist explains the difference between an employee, a worker and a self-employed contractor.

For furher information, please contact our Employment Law Team.

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