Fact sheet 106: Statutory assignment
Version 8
19 June 2007
[PDF 57kb ]
When businesses are sold or partnerships are dissolved, and apprentices or trainees are involved, a statutory assignment-that is, automatic transfer-of a registered training contract may be appropriate. As the statutory assignment is automatic in certain situations, the original employer, the new employer, and the apprentice or trainee will not have to cancel the original training contract and enter into a new contract.
The Vocational Education, Training and Employment Act 2000 provides that statutory assignment of a registered training contract occurs in the following circumstances:
If the employer's business is sold or disposed of to someone else ('the purchaser'), who AGREES to continue to train the apprentice or trainee under the registered training contract:
-
Both the employer and the purchaser are obligated to give the Queensland Department of Education, Training and the Arts written notification of the sale of business and the purchaser's agreement to continue training the apprentice or trainee under the training contract. This written notice must be sent to the department within 14 days after the sale occurs. The Assignment (Transfer) of Registered Training Contract form [PDF 71kb] is available for use as the written notification. The use of this form is not mandatory.
The training contract is taken as assigned to the purchaser on the day agreed between the employer and the purchaser.
Where the purchaser does not agree to continue to train the apprentice or trainee under the registered training contract, the original employer must apply to the department to cancel the training contract. More details on the cancellation process can be found in Fact Sheet 114 Agreement to cancel a training contract - mutual cancellation and Fact Sheet 115 Application for cancellation by one party - inability to perform contract on stated grounds.
- Where the employer is in partnership, the partnership dissolves, and a person who was a partner prior to dissolution continues the business:
The training contract is taken as assigned to the person when the winding up of the affairs of the dissolved partnership is complete. The new employer must provide written notification to the department within 14 days of the dissolution of the partnership. The Assignment (Transfer) of Registered Training Contract form [PDF 71kb] is available for use as the written notification. The use of this form is not mandatory.
- Where the employer is a partnership, the partnership dissolves, and the business is continued under a new partnership by two or more persons who were partners prior to the dissolution:
The training contract is taken as assigned to the new partners when the new partnership begins. The new employer must provide written notification to the department within 14 days of the dissolution of the partnership. Once again, the Assignment (Transfer) of Registered Training Contract form [PDF 71kb] may be used as the written notification, although the use of this form is not mandatory. The training contract is taken as assigned when the new partnership begins.
Where the employer is in partnership, and the partnership dissolves, and neither of the above scenarios occurs, the original employer must advise the department so that the training contract can be cancelled. A probationary period does not apply in cases of statutory assignment.
Where statutory assignment occurs, the new employer and the apprentice or trainee must advise the supervising registered training organisation, and arrange for a new training plan to be completed.
If the assignment results in a change of the supervising registered training organisation, a new training plan must be developed and signed by the parties. The department must also be advised of the change of training provider. More information on the process involved can be found in Fact sheet 126 Replacement of a supervising registered training organisation on the department's Train and Employ website.
Contact Apprenticeships info 1800 210 210 or Training Queensland 1300 369 935
Other languages