Termination of Training Contracts

Wed, Dec 9, 2009

Over the last year the Institute has seen a significant increase in the numbers of training contracts which have been terminated. This gives rise to a concern in light of subsequent registration of new recruits by some firms. Our staff are regularly receiving enquiries from students on the operation of this process. Due to the difficulties that can arise, it is necessary to remind all training firms of their obligations to their students and the importance of adhering to the Institute guidelines in relation to the training contract.

Training contracts can be terminated within the first year. Following the first year the training contract can normally be terminated due to poor performance including examination performance:

  • Where examination performance is the issue, it is essential that the student is advised at the start of their training contract the number of attempts at each examination which the firm permits before the clause is invoked.
  • Where underperformance is the issue it is essential firms adhere to Clause (vii) in Section 3 of the training contract. Under performance by trainees needs to be managed and importantly documented. Employment tribunals are likely to seek evidence that a proper and due process has been followed.

Termination of the contract is often a difficult process for all concerned. The Education Board has permitted students who are terminated to continue their studies up to and including CAP2 examination as "Pre-Contract" students. In addition in the current year due to the challenging job situation students who have completed the CAP2 examination in 2009 and who have not secured a training contract are being permitted to sit the FAE in 2010.

Should you require further clarification on the above matters please contact Caroline Bolster at the Training Support Unit at 01-6377325 or Kelda Lewis (Student Services) at 01-6377265.

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