Frequently Asked Questions

Prohibited Employer >> Questions

Q1 ) What is a "prohibited employer" and how does that affect my ability to hire and fire?

Q2 ) Can "prohibited employers" include group training organisations (GTOs) and how long does prohibition last? What do you have to do to redeem yourself? What kinds of breaches?

Q3 ) Are Australian Apprenticeships Centres (AACs) able to identify employers who are subject to an order under Section 53 of the Apprenticeship & Traineeship Act 2001?

Q3 ) If an order is made declaring an employer to be a 'prohibited employer' under section 53, is it only the employer as a legal entity which is prohibited or are other office holders, directors etc affected? Will the order identify individuals?

Q1 ) What is a "prohibited employer" and how does that affect my ability to hire and fire?

A1 ) An employer who has failed to discharge his/her obligations under the apprenticeship or traineeship has failed to comply with the requirements of the Apprenticeship & Traineeship Act, 2001.

The Vocational Training Tribunal in determining a complaint, may make an order declaring the employer to be a prohibited employer either indefinitely or for a specified period. The Vocational Training Tribunal may make such an order only after giving notice of its intention to do so. In addition, the Vocational Training Tribunal can order the transfer of one or more of any other apprentices or trainees employed by an employer declared as a 'prohibit employer'. A prohibited employer cannot employ further apprentice and trainees until the order is lifted. If the Tribunal allows the employer to retain existing apprentices or trainees, the employers rights to withdraw or cancel contracts are unchanged.

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Q2 ) Can "prohibited employers" include group training organisations (GTOs) and how long does prohibition last? What do you have to do to redeem yourself? What kinds of breaches?

A2 ) Yes, as an employer, GTOs can also be "prohibited" . The Vocational Training Tribunal determines the period of prohibition. The Vocational Training Tribunal or Appeal Panel would set the requirements for review if a declaration as a 'prohibited employer' is made.

Breaches under section 39(1) & (2) of the Apprenticeship & Traineeship Act, 2001 ie, an employer who has failed to discharge his/her obligations under the apprenticeship or traineeship has failed to comply with the requirements of the Apprenticeship & Traineeship Act, 2001 (where or not failure constitutes an offence).

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Q3 ) Are Australian Apprenticeships Centres (AACs) able to identify employers who are subject to an order under Section 53 of the Apprenticeship & Traineeship Act 2001?

A3 ) Information concerning employers who are subject to a 'prohibited employer' order under section 53 of the Apprenticeship & Traineeship Act 2001 is confidential and will be retained by the NSW Department of Education and Training (DET). Should an application lodged by a AAC specify an employer who is subject to an order under section 53 as a 'prohibited employer' the NSW Department Of Education And Training will contact the AAC and advise them accordingly.

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Q4 ) If an order is made declaring an employer to be a 'prohibited employer' under section 53, is it only the employer as a legal entity which is prohibited or are other office holders, directors etc affected? Will the order identify individuals?

A4 ) The Apprenticeship & Traineeship Act, 2001 defines a prohibited employer in the following terms:

"prohibited employer means an employer with respect to whom an order is in force under section 53 and:

1. in the case of an employer that is a corporation, includes a reference to any person who, when the corporation became subject to the order, was a director of the corporation or was concerned in the management of the corporation's business, and
2. in the case of an employer that is a partnership, includes a reference to any person who, when the partnership became subject to the order, was a partner in the partnership or was concerned in the management of the partnership's business."

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