I am closing the business
You cannot just retrench an apprentice or trainee if have signed a training contract with your apprentice or trainee. There is a legal process that must be followed.
What must I do?
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transfer the training contract to another employer offering similar work to your business, or
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cancel the contract.
Note that if you cancel the training contract your apprentice or trainee may be able to establish a new contract with a new employer. The Continuing Apprentices Placement Service (CAPS) matches employers with retrenched apprentices and trainees.
Your obligations
The training contract requires you to provide your apprentice or trainee with appropriate employment during the term of the contract. This requirement cannot be met when your business closes down.
You will need to complete the appropriate paperwork to terminate the contract. Your Australian Apprenticeship Centre can assist you with this and determine what incentives and allowances are outstanding.
