Subcontracting
Clause 8.1 of the ACT Training Initiative Funding Agreement states the mandatory terms and conditions regarding subcontracting.
Circumstances in which the Territory considers the arrangement between a Training Provider and another party (either an RTO, other entity or individual) constitutes a subcontracting arrangement requiring written approval by the Territory include, but are not limited to:
- Where the Training Provider engages an RTO that does not hold an Agreement or an organisation that is not an RTO, to conduct any training and/or assessment on its behalf
- Where any day to day responsibilities for the management of training delivery and/or assessment, for example administration of student records, is deferred to another individual or organisation.
The following instances do not, for the purposes of the Agreement, constitute a subcontract arrangement that require written approval by the Territory:
- Trainers and/or assessors hired as contractors or under an employment agreement
- Agencies, organisations or individuals contracted to deliver additional support, wrap around or work experience coordination services.
To apply for written approval, both the Training Provider and the proposed subcontractor must complete an Application for Subcontracting Arrangement Approval (PDF 1.28MB). Skills Canberra will notify the Training Provider of its decision within 30 calendar days of receiving the application. Failure to receive approval from Skills Canberra prior to commencing the use of any subcontracted service will be considered a breach of the Agreement and will constitute a default under clause 14 of the Agreement.
The written agreement between the Training Provider and the subcontractor for the intended subcontracting arrangement must establish the responsibilities of each party as per clause 8.3, for example, how the Training Provider will manage the subcontracting arrangement and ensure compliance with the Agreement. The written agreement may be the same agreement developed for Australian Skills Quality Authority's requirement under 2.3 of the Standards for Registered Training Organisations (RTOs) 2015.
The written agreement must also include the names of all persons employed by the proposed subcontractor who will be involved in the training and/or assessment and their qualifications.
The written agreement must be in place prior to commencing the subcontracted service.
For more information, follow the below link:
ACT Training Initiative Funding Arrangements