I mean, yeah, it does go against the rule. You certainly couldn’t recruit someone new with that working pattern… I think an exception based on their usual working pattern when they started is what you need, but it’s not there in the guidance at the moment.
I’d be finding other providers for whom this is an issue and then all writing to ESFA at once (and go straight to Mike Pettifer!). If you’re an AELP member, would definitely be flagging it with them…
P345 As an exception, we will also allow the following individuals to be funded from an employer’s apprenticeship service account or using government-employer coinvestment:
P345.3 Apprentices whose occupation involves significant travel outside of the UK as part of their job (such as in travel or tourism) or work offshore (such as on an oil platform) and they have an identified registered work location in England. You must not claim for the additional expense of delivering learning outside of England.
Not specifically this situation, but it feels like it’s within the spirit of this rule.
If they stay working from a home outside of England for more than half the duration on the apprenticeship, you might have a problem, but otherwise I’d say it’s fine.