Competency based progression for residential trade apprentices

What it is

Australian apprenticeships are competency based. The training contract lists a nominal term, usually three to four years for residential trades, but the apprentice can progress through pay stages and finish the apprenticeship when assessed competencies are met and the parties agree. Progression is recorded against the training plan attached to the contract and signed off by the registered training organisation.

For residential builders this matters two ways. First, a faster moving apprentice reaches productive output sooner. Second, the wage progression rules in the Building and Construction General On site Award 2020 follow the competency stages, so a stage progression is also a pay rise.

How the framework works

Every Certificate III qualification in the Construction, Plumbing and Services Training Package is a set of core and elective units of competency. Each unit has performance criteria that the apprentice has to meet. The RTO assesses competency through written tasks, supervised work and direct observation on site. When the apprentice meets the threshold for a stage, the RTO updates the training plan and notifies the state training authority.

The Building and Construction General On site Award 2020 sets percentages of the Level 3 (CW/ECW 3) rate for each stage of the apprenticeship. The apprentice moves up a pay point when the apprentice achieves the competencies for that stage, which can be earlier than the nominal 12 months for the stage.

Time based versus competency based

Apprentices can move to the next level of an apprenticeship either time based or competency based. Time based progression uses the elapsed period in the contract. Competency based progression uses the assessment outcomes in the training plan. The two are not mutually exclusive. A builder can run the contract on a default time based stream and move the apprentice forward early when the RTO assesses the apprentice as competent.

A worked example from Fair Work guidance has an apprentice eight months into the second year of a painting apprenticeship who is producing third year level work. The RTO completes the second year assessments early, the apprentice moves to the third year pay point and the training plan is updated.

How to set up competency based progression

1. Choose a Certificate III qualification that suits the residential work the builder runs.
2. Pick an RTO that is willing to assess on site, not only at the campus, and that has trainers with current residential experience.
3. Build a training plan that maps the units of competency to the work the apprentice will actually do across the year.
4. Run regular workplace assessments. Quarterly is a useful cadence for residential builders.
5. Lodge a contract variation if the parties agree to a shorter nominal term once a clear majority of competencies have been signed off.

Finishing the apprenticeship early

The training contract names the nominal completion date. The apprenticeship can be completed before that date when the RTO certifies competency in all units, the employer and apprentice agree and the state training authority approves the variation. The apprentice receives the trade qualification and moves to the qualified tradesperson rate under the relevant award.

In residential carpentry the move to qualified tradesperson means the worker can sign off own work, supervise the next apprentice intake and pursue post trade study toward a Certificate IV or Diploma in building.

Risks and protections

Competency based progression should not be used to push an apprentice ahead of their actual skill level. The RTO assessment is the gatekeeper, and the Fair Work Ombudsman investigates underpayment complaints where employers claimed competency that was never assessed. Builders should keep evidence of:

• The training plan signed by the apprentice, the employer and the RTO.
• The dated competency sign offs from the RTO.
• The award stage and pay rate paid to the apprentice across the term.

Why this matters

A residential builder that runs competency based progression well shortens the apprentice cycle, retains motivated apprentices and ends up with qualified tradespeople who can supervise the next intake. The framework is national, the rules are clear and the work to set it up is a few hours of training plan design with the RTO.