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What is 4Trades?
4Trades is an initiative working to reduce red tape and compliance costs that can hinder the hiring of an apprentice.
4Trades offers an alternative to traditional apprenticeships by transferring hiring and employment risks and costs along with associated ‘red tape’ issues, to 4Trades.
It has been estimated that ‘red tape’ issues such as PAYE, ACC, and OSH, plus compliance costs such as ITO training registration, statutory holidays, and sick leave costs can cost a business more than $7.00 per hour in addition to the apprentice’s hourly pay rate.
With the 4Trades initiative, the apprentice is selected, employed, paid, administered and managed by 4Trades who then places the apprentice with a suitable ‘host’ for training. 4Trades becomes the ‘employer’ preparing all the paperwork and meeting much of the costs and risks associated with the apprenticeship.
As the ‘Employer’ 4Trades pays for the apprentices holiday leave, sick leave and course leave.
4Trades provides the apprentice with work boots, protective clothing and even arranges an advance to help the apprentice purchase tools.
Being a ‘trainer’ only, the ‘host’ company is not committed to the full ( 2 – 3 year ) term of an apprenticeship and can host the apprentice for a minimum of 6 months or up to the full term of the apprenticeship ( and beyond.)
The benefits to hosts of using 4Trades:
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It is estimated that over 70% of apprenticeships can fail within the first 3 months. However, by utilising the experience of 4Trades, the apprentice failure rate is greatly reduced.
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Having 4Trades manage apprenticeship recruitment and employment issues, and visit the apprentice regularly, frees up valuable time for the host to concentrate on core business activities.
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4Trades will help a host select the right person to take on an apprenticeship, and arrange for a paid work trial (if required).
- The Host’s payment to 4Trades is tax deductible. Not only can GST be claimed, but as a Direct Charge to the Host’s business, the 4Trades invoices will offset net income by 19.5% to 39% (depending on the level of the Host’s net annual income).
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Hosts have the benefits of an apprentice, but need not be worried about quiet times or lack of work (only an initial commitment of six months is required).
4Trades will:
- Take care of paperwork and administration e.g. Employment contracts, PAYE returns, OSH induction etc.
- Tailor a special package to suit the host company and meet ITO requirements.
- Frequently supervise and mentor the apprentices.
- Liaise with the relevant Industry Training Organisation (ITO) to register the apprentice for training.
- Arrange workplace assessment of the apprentice.
- Liaise with the relevant off-job training provider.
- Arrange travel and accommodation for the apprentice to attend off-job training.
- Encourage and mentor the apprentice to achieve best outcomes for all.
Talk to you about the type of apprenticeship you are interested in.
What does it cost?
4Trades will negotiate with the ITO and tailor a package to suit the Host Company.
Due to the efficiencies of this Charitable Trust, the cost to the Host is usually less than the $7.00 per hour faced by a traditional employer to cover PAYE, OSH, ITO, holiday pay, statutory holiday pay, and course leave requirements.
Host Companies are invoiced weekly and payment is tax deductible as a business expense. GST can be claimed by the host and as a Direct Charge to the Host’s business; the 4Trades invoices will offset net income by 19.5% to 39% (depending on the level of the Host’s net annual income.)
Finding the Apprentice
4Trades recruitment process identifies young people who have the ability, attitude and commitment needed to complete the requirements of an apprenticeship. Host companies can choose their apprentice from a number of shortlisted applicants which may include existing unskilled staff.
Benefits for the Apprentice
4Trades will:
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- Help you obtain a suitable apprenticeship.
- Assist you to complete your apprenticeship training to the required standards.
- Check to see that everything is safe in your work place and that both you and your host are satisfied.
- Ensure you are treated fairly and make clear what is expected both in training and ‘on the job.’
- Arrange extra help if you require it, (for example 4Trades may assist you to get a drivers licence or obtain further education and training.)
- Manage your apprenticeship and oversee your training plan.
- Provide you with your safety gear and basic tool kit.
4Trades offers the opportunity to learn a trade with no student loan, PLUS you get paid a wage as you learn a trade!
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