Employer Guide to Traineeships
Employer Guide to
NSW Smart and Skilled Traineeships
Employers of Trainees
As an employer in New South Wales (NSW), engaging in the Smart and Skilled traineeship program offers a strategic avenue to develop a skilled workforce tailored to your business needs. This initiative not only facilitates employee growth but also provides access to various financial incentives designed to support your commitment to training and development.
Why Hire a Trainee?
Hiring a trainee through the NSW Smart and Skilled program provides numerous benefits to your business, including:
- Access to government funding and financial incentives to reduce training costs.
- The ability to train staff according to your business needs.
- Increased employee loyalty and engagement through structured career development.
- A pipeline of skilled workers who can grow with your company.
By employing a trainee, you’re not just investing in their future but also in the long-term success of your business.
What’s the Difference Between an Apprenticeship and a Traineeship?
Many employers and job seekers wonder about the difference between traineeships and apprenticeships. While both involve structured workplace training, they have distinct differences in duration, industry focus, and career pathways.
Apprenticeships:
- Industry Focus: Traditional trade-based occupations (e.g., electricians, plumbers, carpenters, mechanics).
- Duration: Typically 3-4 years.
- Training: Combines on-the-job training with formal study at a TAFE or Registered Training Organisation (RTO).
- Outcome: Leads to a trade qualification (Certificate III or higher) and often requires licensing to work independently.
Traineeships:
- Industry Focus: Non-trade occupations like animal care, business, retail, IT, and hospitality.
- Duration: Usually 12-24 months.
- Training: Mix of workplace experience and structured training through an RTO.
- Outcome: Results in a Certificate II, III, or IV qualification, helping employees gain industry-relevant skills.
Understanding Smart and Skilled Traineeships
The Smart and Skilled program is a NSW Government initiative aimed at providing subsidised training for eligible individuals, ensuring they acquire the skills needed by industries and businesses across the state. As an employer, participating in this program allows you to upskill your current employees or hire new trainees, contributing to a more competent and competitive workforce.
Employer Obligations
When hiring a trainee, employers must:
- Provide a safe and supportive workplace.
- Ensure trainees receive adequate supervision.
- Allow time for off-the-job training with an RTO.
- Comply with Fair Work Australia conditions, including minimum wages.
- Keep records of training progress and workplace assessments.
Financial Incentives for Employers
Priority Hiring Incentive
The Priority Hiring Incentive is focused on supporting employers to hire Australian Apprentices & Trainees in priority occupations. It is open to employers whose apprentices commence from 1 July 2024 and is targeted to the first year of the Australian Apprenticeship.
Eligible employers that hire a new or an existing worker in a priority occupation can claim up to a maximum of $5,000 for full-time trainees and $2,500 for part-time trainees.
Payroll Tax Rebates
The Office of State Revenue administers an offset rebate scheme for approved apprentices and new entrant trainees. Rebates are provided by allowing the amount of the rebate to be offset against monthly payroll tax payments. (revenue.nsw.au)
For more information contact our recommended Apprenticeship Centre – Busy At Work
Step-by-Step Process for Employers
1. Assess Your Workforce Needs
Before hiring a trainee, consider:
- What skills and qualifications your business needs.
- Whether you have the capacity to provide training and supervision.
- If you have an existing employee who could benefit from upskilling.
2. Find a Registered Training Organisation (RTO)
Choose an RTO that offers the relevant traineeship qualification.
- The RTO will provide the formal training component and assess the trainee’s progress.
- You can find approved RTOs through Training Services NSW.
3. Sign a Training Contract
- The Training Contract is a legally binding agreement between you, the trainee, and the RTO.
- It outlines responsibilities, training structure, and timelines.
- A nominated Australian Apprenticeship Support Network (AASN) provider (e.g., BUSY At Work) will assist with contract lodgment and paperwork.
4. Register the Traineeship
- Once the contract is signed, it must be lodged with Training Services NSW for approval.
5. Apply for Financial Incentives
- Based on eligibility, apply for employer incentives such as wage subsidies, payroll tax rebates, and government grants.
- Your AASN provider can guide you through the application process.
6. Support the Trainee’s Development
- Provide hands-on training in the workplace.
- Allow time for off-the-job training with the RTO.
- Monitor their progress and provide mentorship.
7. Completion and Certification
- When the trainee meets all competency requirements, the RTO will issue a nationally recognised qualification.
- Successful completion may open opportunities for permanent employment or progression to higher-level qualifications.
Commonly Asked Questions (FAQs)
Can an existing employee become a trainee? Yes! You can upskill current employees through a traineeship, provided they meet eligibility criteria.
What happens if a trainee leaves before completion? If a trainee leaves early, you may still be eligible for partial incentives. The training contract may be transferred to another employer.
Do I have to pay for the RTO training? The NSW Government subsidises training costs under Smart and Skilled. The level of subsidy depends on the qualification and trainee eligibility.
How do I find the right RTO for my business? Visit Training Services NSW to search for approved training providers.
Is there a probation period for trainees? Yes, trainees typically have a probation period (e.g., 30-90 days) where either party can terminate the contract.
Can I hire more than one trainee at a time? Yes, businesses can hire multiple trainees as long as they can provide the necessary training and supervision.
Benefits of a Trainee
- Government Financial Incentives 💰
- Employers can access wage subsidies, payroll tax rebates, and training cost support to reduce the financial burden of hiring and training staff.
- Customised Skills for Your Business 🎯
- Traineeships allow businesses to train employees in job-specific skills, ensuring they meet industry and workplace needs.
- Increased Staff Retention & Loyalty 🤝
- Employees who receive training and career development are more loyal, engaged, and likely to stay long-term.
- Flexible Training Options 📚
- Training can be on-the-job, online, or in a classroom, allowing businesses to integrate learning without disrupting operations.
- Boost Productivity & Competitiveness 🚀
- Skilled trainees contribute fresh ideas, improved efficiency, and higher workplace performance, making your business more competitive.