Modes of delivery – Unified Funding System

Modes of delivery – Unified Funding System

Last updated 5 January 2023
Last updated 5 January 2023

There are five modes of delivery that reflect how learning takes place.

An individual learner’s programme can be made up of one or more modes. This will enable learners and employers to access learning opportunities in a way that works best for them and supports them to move seamlessly between different ways of learning.

The modes recognise the different cost structures involved in delivery.

The modes of delivery have been designed as part of the Unified Funding System (UFS) delivery component to:

  • recognise broad differences in costs across modes and subject areas and will be used to determine the funding rate for providers
  • support the quality, relevance and growth of work-based learning
  • meet learner, employer and community needs
  • be simple and transparent.

This webpage provides the high-level descriptions of the modes of delivery agreed by Cabinet, detailed definitions, supporting guidance and examples for each mode of delivery. It also provides general guidance that applies to multiple modes and includes links to relevant information.

Modes of delivery high-level descriptions

Mode

Description

Provider-based

Learners study mainly in a campus setting with supported self-directed learning. Providers are responsible for learners’ health and wellbeing support.

Provider-based: extramural

Learners study mainly away from a campus setting but not in the workplace. Learners undertake supported self-directed learning and the provider is responsible for the learners’ health and wellbeing support.

Work-based: pathway to work

Learners have completed some study in the provider-based mode. Providers assist learners to find jobs with training agreements and support them to establish their learning in the workplace. All other work-based responsibilities are the same as the work-based mode. This rate will be limited to the transition period between study and work.

Work-based

Learners study mainly in the workplace with supported self-directed learning. Learners are supported in their training by both the provider and employer. Providers are responsible for learners’ health and wellbeing support but this may be provided in conjunction with the employer.

Assessment and verification

Learners receive training in the workplace. The employer has created or purchased a programme of study leading to a qualification and delivers this. Providers work with employers to match the programme to the New Zealand Qualifications and Credentials Framework (NZQCF). Providers are responsible for the quality of assessment of the programme.

Mode of delivery definitions and guidance

Provider-based

Operational Definition

The learner is enrolled with a provider with delivery at a provider site, e.g. campus or other NZQA- and TEC-approved delivery site, and is undertaking teaching and learning activities, such as lectures and tutorials, with additional supported self-directed learning. Cost and delivery method are the key drivers for the provider-based rate. 

This mode can include internships, practicums and temporary work experience, and field and clinical experience undertaken as part of the learning. However, where the course comprises learning in the provider setting and workplace, no formal employment relationship exists. Further information on internships, practicums, and temporary work experience is provided in the general guidance section further below.

Online learning platforms can be used under this mode. However, the learning must complement face-to-face in-person teaching and learning.  Online learning should be less than 25% of the learning delivery method. Synchronous online learning can be offered alongside in-person teaching, but the delivery will not be considered as provider-based if online delivery is the only method of teaching.

The provider is responsible for the learner’s health and wellbeing support in accordance with the NZQA Code of Practice for the Pastoral Care of Tertiary and International Learners.

The provider is funded to:

  • deliver programmes for credentials that meet employer and industry needs as well as regional and national skills priorities
  • deliver all education/training and assessment activities* towards an NZQA or Committee on University Academic Programmes (CUAP)-approved credentials
  • provide all learning support and pastoral care in relation to the learner’s needs in accordance with the Code of Practice for Pastoral Care of Tertiary and International Learners.

*Assessment activities include verification and moderation and can include purchasing and utilising assessment resources from an external source.

Provider-based mode guidance

This mode is designed to cater for most existing provider-based delivery of learning.

Under this mode, teaching and learning can be offered in a variety of settings to reflect a learner-centric approach. For example, classroom based, evening workshops or access to synchronous, online lectures that complement the in-person on campus delivery. Even though this blended or flexible approach covers a range of physical settings, it is still considered to be provider-based so long as NZQA and TEC requirements for approved delivery sites are met.

TEC’s funding expectations of the difference between Provider-based and the Provider-based: extramural modes are to do with the drivers of costs and delivery methods as noted in the policy development for this mode. TEC expect at least 75 percent of the course to be delivered to the learner in a synchronous manner, either on campus or at an approved delivery site equivalent.

The Programme Development and Maintenance Fund (PDMF) is intended to support the upfront costs of programme development, with a focus on extramural and innovative delivery. 

For further information, see the strategic component.

See general guidance on the modes of delivery for additional detail.

Example

Provider A offers Tourism and Hospitality courses delivered at a main campus or an NZQA-approved delivery site.*

* If providers are forced to close their campuses and transition to online learning due to situations similar to the COVID-19 pandemic, the funding rate for the mode of delivery could remain at the provider-based mode (where appropriate).

Learners attend in person at an approved delivery site to undertake the majority of their studies. They participate in classroom/kitchen-based activities designed to help them achieve the expected learning outcomes of the programme. They undertake work experience when ready, and during that time may have some of their skills formally assessed by a visiting tutor. Learners may also undertake self-directed study (either supervised on campus or offsite) during their Programme.

To retain the provider-based funding rate, the delivery needs to mirror what would have happened in a campus setting.  The delivery also needs to include the same level of engagement opportunities between learners and the provider (to the best of the provider’s ability.)

Provider-based: extramural

Operational Definition

The learner is enrolled with the provider with learning occurring away from a provider site (and not in a workplace).  The delivery only involves the use of postal services; or hard copy workbooks, or an online learning platform with or without face-to-face contact (either online or in-person) between the provider and learner. Where online learning platforms are used, they can also involve group lectures, tutorials, etc.

Learning in this mode is typically structured to give learners the flexibility to complete their work in their own time, notwithstanding the provider’s ability to set timeframes during which learners need to engage with the learning.

The provider is responsible for the learner’s health and wellbeing support in accordance with the Code of Practice for the Pastoral Care of Tertiary and International Learners.

The provider is funded to:

  • deliver programmes for credentials that meet employer and industry needs as well as regional and national skills priorities
  • deliver all education/training and assessment activities* towards an NZQA-approved credential
  • provide all learning support and pastoral care in relation to the learner’s needs while studying and in accordance with the Code of Practice for Pastoral Care of Tertiary and International Learners.

*Assessment activities include verification and moderation and can include purchasing and utilising assessment resources from an external source.

Provider-based: extramural mode guidance

This mode is designed to fund delivery of learning that is essentially based away from campus (but not in a workplace) that includes face-to-face online engagement between the learner and provider.

This mode is not intended to cover any current or future delivery which is being offered online due to COVID-19 related restrictions on campus-based activity.

Learning support and pastoral care responsibilities still apply, in a proportionate and measurable way, in accordance with the Code of Practice for Pastoral Care of Tertiary and International Learners.

In situations where a learner studying under the extramural mode would benefit from more face‑to‑face support than extramural study would normally accommodate, additional learner‑centred support using the resources available can be provided. Webchat, email, video call in one-to-one or group situations would be considered a normal part of extramural delivery.

Extramural delivery would include (but is not limited to) the following examples:

  • hard-copy course and assessment materials are posted to learners
  • pre-recorded tutorials are made available to the learner, and they complete online assessments
  • situations where specialist resources may need to be loaned to students
  • the provision of asynchronous learning (where there is no significant interaction between tutor and student; and study materials are pre-recorded and static)
  • provision of synchronous learning (where there is tutor-student or peer-to-peer interaction, often involving broadcast lectures, interactive webinars etc., which are live/delivered in real time) that is typically delivered away from a provider’s site.

In general, for courses that are reported as extramural in 2023 the value of delivery will be calculated based on Provider-based: extramural rate.

The definition of the Provider-based: extramural mode will be refined during 2023 and 2024, with the definition being in place from 2025.

See general guidance on the modes of delivery for additional detail.

Example

Provider B delivers Business and Accounting courses online using a mix of online learning platforms and hardcopy workbooks. Most of the course credentials can be completed through asynchronous learning with some credentials requiring the learner to attend a small number of online lectures and workshops.

Work-based: pathway to work

Operational Definition

The Work-based: pathway to work mode is about a transition from provider-based learning to work-based learning. It consists of a three-step process starting in the provider setting, moving into Work-based: pathway to work setting, and resulting in the learner completing their study in the Work-based mode. The funding for this mode covers the transition period from Provider-based (or Provider-based: extramural) to Work-based learning.

The learner is enrolled with the provider and delivery has transitioned from either Provider-based (or Provider-based: extramural) mode to Work-based learning with the same provider. Learning is provided in partnership by the provider and employer.

Work-based: pathway to work only occurs when there are formal agreements in place covering each party’s roles and responsibilities. The formal agreements that are required by this mode include: 

  • an agreement between the provider and employer outlining the arrangement to support learners in a work-based learning environment
  • an enrolment agreement between the learner and provider
  • a training agreement, which forms part of the formal employment agreement or relevant equivalent, between the employer and employee/learner.

This mode is to support learners to gain suitable, meaningful and sustainable employment relevant to their programme of learning. The provider will actively assist the learner to find employment and support and establish their learning in the workplace. The role of supporting workplace-based learning is shifting from the Transitional Industry Training Organisations to other providers (Te Pūkenga, private training establishments (PTEs), and wānanga).

By 01 January 2023, these providers will arrange and support work-based training as well as deliver education and training in classroom and online settings, so learners can move seamlessly across the vocational education system.

See further information on workplace-based learning.

Micro-credentials and training schemes are not eligible for funding under this mode.

The learner is only able to transition from Provider-based or Provider-based: extramural mode, to the Work-based: pathway to work mode to continue their learning towards an NZQA-approved qualification, when the:

  • employment opportunity is relevant to their continuing programme of study
  • training covers up to 30 credits or a period of 3 months (whichever comes first), and
  • work-based learning is from the same provider.

The prerequisites for this mode are that the:

  • learner has been awarded some credits in either the Provider-based mode, or the Provider-based: extramural mode in a relevant programme of study (e.g., same field of study or industry connection)
  • learner must not have been enrolled in TEC-funded work-based learning for at least six months prior to them studying the same (or a similar) qualification
  • learner has not completed 75 percent of the same programme in the last three years.

The provider is funded to:

  • deliver programmes that enable learners to enter the workforce while undertaking learning towards a qualification that meets regional and national skills priorities
  • find suitable employment that provides work-based learning opportunities for the learner
  • work with the employer to develop the required agreements, identify relevant training needs, develop a learner pathway and a learner-specific training agreement
  • enrol learner in relevant courses
  • work with the employer to deliver learning, and support a transition to work-based learning
  • provide all learning support and pastoral care in relation to the learner’s needs, in accordance with the Code of Practice for Pastoral Care of Tertiary and International Learners
  • assess and, where necessary, develop employer capability for training and verification of skill acquisition
  • provide learning and assessment material towards an NZQA-approved credential (level 3-7 non-degree)
  • undertake all assessment and quality assurance activities* to NZQA standards.

The employer is required to:

  • ensure there are formal agreements that clearly define each party’s responsibilities and describes the training that will continue under the Work-based mode
  • ensure there is a formal written employment agreement with the learner that complies with the Employment Relations Act 2000, or a relevant equivalent for those that are volunteers or contracting their services
  • provide regular training and supervision during work hours
  • support the learner’s relevant skill acquisition and any self-directed learning through resource provision
  • work with the provider to ensure the work-based learning modules to achieve the learning outcomes within the relevant agreement are completed
  • transition the learner to work-based learning once the learning outcomes identified as a pre-requisite to enter the Work-based mode, as defined in the relevant agreement, have been met.

*Assessment activities include verification and moderation and can include purchasing and utilising assessment resources from an external source.

Work-based: pathway to work mode guidance

The Work-based: pathway to work mode recognises the extra effort and support often required to transition a learner from an existing provider-based programme of learning into suitable, meaningful, and sustainable work-based learning. This mode is designed to support the transition by funding the extra effort the provider puts into supporting the learner.

The TEC would require evidence of employment and work-based learning (i.e., up to 30 credits or not less than 3 months) at the end of the pathway period in order to receive funding under this mode of delivery. TEC retains the right to request evidence of employment and work-based learning at the end of the pathway period in order for the TEO to retain funding under this mode of delivery.

Both the provider and the employer need to be clear on their pastoral support arrangements and for the learner to have a safe place to learn. This should be documented in the relevant agreement between the two parties. Overall, the provider is responsible for the health and wellbeing of the learner. The employer is responsible for the learner’s health and wellbeing in accordance with statutory workplace health and safety requirements.

When we consider whether the learner may have previously been enrolled in similar and related qualifications, the TEC will consider the course funding category, the New Zealand Standard Classification of Education (NZSCED) code, and any overlap in learning outcomes between the programmes, allowing for the fact that there may be variations on a case-by-case basis.

The learner can have an existing job elsewhere so long as it does not involve funded, work-based learning. This is because the Pathway to work mode is about finding the learner a job in their field of study that will allow them to continue to study.

The point at which a learner transitions from one mode of delivery to another, and the duration of each mode, can vary by programme and learner.

There is an expectation of seamless transition between modes from the learner’s point of view. This is to ensure they see the transition from a provider setting into supported workplace learning and on to independent workplace learning as a natural progression, and that the momentum of learning is not lost. Any gap greater than 90 days between a provider-based enrolment period and subsequent work-based programme enrolment would be a new enrolment, and not eligible for the Pathway to work mode.

The Pathway to work mode is a short-term transition from provider-based learning to work-based learning (i.e., 30 credits or 3 months). To ensure the learner is not disadvantaged, in the very rare cases where a ‘pathwaying’ learner was to transfer from one TEO to another, then the new, work-based TEO would qualify to receive the Pathway to work mode rate relating to the learner.

Example of transition between modes where Work-based: pathway to work is utilised

 

Event

Credit value

Note regarding credit value

Mode of delivery

Day 1

Mary enrols at TEO

60 credits

There is no minimum, nor maximum credit value required (but cannot be a micro-credential) for the initial provider-based mode

Provider-based, or
Provider-based: extramural

Day X

Mary becomes an employee with a training agreement

30 credits / 3 months

 

Work-based: pathway to work

After [Day X + 3 months] until programme is complete

 

 

Mainly

Mary continues in work, and training towards her L3 programme

Remaining credit value (less any provider-based as below)

Due to the nominal credit value (STM) calculated by the ITR, it is likely that Mary would not complete 30 credits within the first three months

Work-based

Could include, if required

Mary's programme may also require some further provider-based delivery (e.g. a block course)

Block course credit value

The credit / EFTS value is calculated in the normal way by the SDR

Provider-based, or
Provider-based: extramural

 

See general guidance on the modes of delivery for additional detail.

Example

Provider C currently delivers programmes which are Provider-based, Provider-based: extramural and Work-based. They leverage their close contacts with local engineering businesses and their own staff expertise and equipment in response to indications from their Regional Skills Leadership Group of a looming shortage of fabricators due to retirement within the existing local workforce.

Learners enrol in the Level 3 Engineering Fabrication programme at the provider’s site. The provider offers core skills in health and safety, tool use, and employability skills and other learning relevant to the programme. The provider then arranges a ‘pathway to work’ where the learner becomes employed (and a relevant employment agreement signed) and is supported to continue with their programme as outlined in formal agreements signed by the learner, provider and employer.

A provider staff member is allocated as a mentor to learners in the Work-based: pathway to work mode, and visits regularly.

After the Work-based: pathway to work period has finished, the learning shifts to the Work-based mode. As part of their commercial agreement, the provider has already determined with the employer what assessment evidence is suitable for final assessments and the assessment evidence and activities comply with the NZQA requirements for the programme. For example, production logs and low reject or re-work tallies are suitable evidence of competence.

The learner continues under Work-based mode with the programme of training / learning until they complete all the requirements of that programme.

Work-based

Operational definition

The learner is an employee, contractor or volunteer, and an enrolee with a provider and acquires skills in their workplace. Learning is typically work-based with supported self-directed learning.

Learners are supported in all aspects of their training by both the provider and employer. Providers are responsible for the learner’s health and wellbeing support, in combination with the employer, and in accordance with their obligations under employment legislation and, where applicable, the Code of Good Practice for New Zealand Apprenticeships (PDF, 440 KB).

The following formal agreements are required for this mode: 

  • an agreement between the provider and employer outlining the arrangements to support learners in a work-based learning environment
  • an enrolment agreement between the learner and provider
  • a training agreement, which forms part of the employment agreement or relevant equivalent, between the employer and employee/learner.

The provider is funded to:

  • deliver programmes for credentials that meet regional and national skills priorities
  • determine the credits that need to be completed before the learner is eligible to undertake work-based learning with the employer
  • work with the employer to develop or amend the required agreements, identify relevant training needs, develop the learner pathway, and provide the learner-specific training agreement
  • enrol the learner in a relevant credential
  • work with the employer to provide learning
  • provide all learning support and pastoral care in relation to the learner’s needs and in accordance with the NZQA Code of Practice for Pastoral Care of Tertiary and International Learners and, where relevant, the Code of Good Practice for NZ Apprenticeships (PDF, 440 KB) (PDF, 440 Kb)
  • assess and, where necessary, develop employer capability for training and verification of skill acquisition
  • provide learning and assessment material towards an NZQA-approved credential
  • undertake all assessment and quality assurance activities* to NZQA standards.

The employer is required to:

  • work with the provider to ensure learners have the necessary skills to undertake work-based learning
  • provide regular learning and supervision during work hours and support to attend any campus-based course
  • ensure there are relevant formal agreements
  • provide all learning support and pastoral care in relation to the learner’s needs and, where applicable, in accordance with the Code of Good Practice for NZ Apprenticeships (PDF, 440 KB) when learning is undertaken at the workplace
  • work with the provider to ensure all work-based learning defined in the relevant agreement is completed
  • support the provider with the assessment and verification of the learner’s skill acquisition
  • support the learner’s relevant skill acquisition and any self-directed learning through resource provision.

*Assessment activities include verification and moderation and can include purchasing and utilising assessment resources from an external source.

Work-based mode guidance

This mode is intended to cover much of what has previously been delivered and funded as industry training. It is likely to be most accessible to providers with existing connections and operational arrangements with the sectors and workplaces concerned.

Documented agreements that outline the responsibilities of the learner, employer and provider are a requirement for this mode of delivery.

In general, we expect courses recorded within the Industry Training Register in 2022 will be funded as Work-based in 2023. As per our Plan Guidance document, those that are not currently work-based in 2022 will only be considered at the work-based rate on an exceptional basis for 2023. The volume of the Work-based mode is expected to increase over time as providers adapt to the incentives intended by the UFS.

See general guidance on the modes of delivery for additional detail.

Example

Provider D arranges to support learners who are ‘learning while they’re earning’ as a trades apprentice. The learner, employer and provider all understand the learning content delivered, evidence collection points and any gaps in learning that can be covered within the workplace.

Learners go to their workplace most of the time.  They participate in work-based activities designed to help them achieve the expected learning outcomes in their training plan.  During that time they have some of their skills formally assessed by a visiting tutor.  Learners may also undertake relevant block-courses at a TEO’s site during their Programme.

Assessment and verification

Operational definition

The learner is already employed with skills acquisition and training occurring in their workplace.

The learner undertakes in-house learning to complete training towards a level 3-7 (non-degree) credential that is delivered by their employer.

The employer and the employee (the learner) have a training agreement in place as part of the employee’s employment agreement.

The employer is required to:

  • develop or contract the delivery of an in-house training programme to deliver training specific to the employer’s needs
  • work with provider(s) to map these to a specific qualification or credential that the provider has NZQA accreditation and approval for
  • work with provider(s) to agree a contract for assessment and verification services
  • deliver all training
  • provide all training and assessment material (which may include procurement of these from the provider)
  • be responsible for learning support and pastoral care in accordance with employment law.

The provider is funded to:

  • map the employer’s training programme to an NZQA-approved credential, skill standard or qualification
  • oversee the development and execution of all assessment quality assurance activities *
  • award the credential to the learner upon completion of their learning.

*Assessment activities include verification and moderation and can include purchasing and utilising assessment resources from an external source.

Assessment and verification mode guidance

This mode is considered to apply to a limited set of circumstances. An example is where large workplaces with their own learning and assessment collection methodologies partner with a provider to have this mapped and recognised against outcomes in national qualifications. It is usually national or multi-national companies with their own training and evidence collection infrastructure and support systems that would fall under this mode.

The TEC will not fund any workplace training that is primarily linked to statutory health and safety requirements as that is an employer’s responsibility to their employees. The TEC also does not fund Recognition of Prior Learning (RPL) which is related to matching qualification outcomes to previously acquired skills and knowledge.

Providers are expected to carry out a detailed review of the workplace learning and evidence collection programme against New Zealand Qualifications and Credentials Framework (NZQCF) components and to ‘maintain’ this mapping in line with any Workforce Development Council (WDC) or NZQA reviews of relevant national standards or qualifications.

The learner must complete the employer’s learning programme to be awarded a qualification. If the learner changes employment mid-learning, the provider must report all completed unit standards to NZQA for inclusion in the learner’s NZ Record of Achievement.

Learner component top-ups of funding are not available under this mode.

Providers must be able to meet all the workplace’s requirements for volume of learners and geographical spread. In the event an employer’s training content does not meet all the learning outcomes within the provider’s approved programme for the relevant qualification, it is not expected the provider will cover gaps in learning under the assessment and verification mode.

See general guidance on the modes of delivery for additional detail.

Example

Provider E partners with a national restaurant chain that utilises their own structured learning and evidence collection systems.

The provider has carried out detailed mapping of these workplace outcomes against the qualification outcomes for the appropriate programmes and documented these for future quality assurance purposes. The provider assists with relatively ‘light touch’ support, such as tracking their progress through internal learning and evidence collection steps and reporting the results to NZQA and awarding learners the correct credential.

General guidance on the modes of delivery

This guidance supplements the information in the mode of delivery definitions and guidance provided above.

Overarching guidance

  • Learners will continue to be enrolled in programmes across a range of provider types. Providers will need to ensure that the learning outcomes in their programmes still meet all New Zealand Qualifications Authority (NZQA) approval and accreditation requirements and meet the TEC’s requirements for funding.
  • The level of engagement and responsibilities the provider has in relation to their learners is expected to be proportional across the modes in line with the delivery. For example, the funding for some of the modes is at a lower level than other modes to reflect the varying range of cost structures, responsibilities and engagement in relation to the delivery of learning and engagement with learners.
  • Providers are still required to offer coherent packages of learning which meet NZQA programme approval and accreditation
  • Providers are responsible for ensuring appropriate learning outcomes can be met in different delivery settings as required, and to retain overall responsibility for reporting and quality assurance.
  • The learner journey is not affected by the provider accessing different funding via different modes where required.
  • It is required that all programmes are informed by Workforce Development Council (WDC) and Regional Skills Leadership Group (RSLG) priorities for each business sector and region.
  • Learner pastoral care requirements must be addressed in a proportionate and tailored way by providers whatever mode of funding is accessed.

Required agreements for Work-based: pathway to work and Work-based modes

Providers that offer work-based learning arrangements are required to ensure the following agreements are in place:

  • an agreement between the provider and employer outlining their arrangement to support learners to continue their learning journey in the workplace;
  • an enrolment agreement between the learner and provider; and
  • a training agreement between the employer and the employee (the learner) as part of their employment agreement.

The required agreements must cover all relevant learner and programme information and clarify provider and employer responsibility. For example, in addition to mandatory employment agreement clauses, some of the content TEC expects to see in the agreements collectively includes:

  • learner, employer and provider obligations
  • learning programme for the relevant mode or modes and the learning outcomes to be achieved
  • a structured programme in place to enable the learner to achieve their learning outcomes and to support their transition from one mode of delivery to another
  • enrolment and withdrawal processes
  • variation and termination processes.

The requirement to have formal agreements is not about imposing new obligations on the sector. It is about ensuring good business practices are in place, that each party understands the arrangements and their related obligations, and that it’s documented and agreed by the relevant parties. Providers currently delivering courses in the workplace should have some form of these agreements in place already. For this reason, TEC has not prescribed a specific format or template to be used to meet this requirement but instead identified key aspects these agreements should cover. 

Group training schemes and providers training their own employees

For the purposes of the modes of delivery, Group Training Scheme (GTS) learners enrolled with TEOs who have secured TEC funding for 2023 will be recognised and funded under the Work-based mode. This approach recognises the unique learner pathway that they facilitate.

Where a GTS becomes a provider, or where a provider is also the employer, it is envisaged any distinctions between their roles as an employer and provider will be fully documented for transparency to the learner. Employment agreements between the provider (as the employer) and learner (as the employee) are still required in these scenarios.

Self-directed learning

Learners can undertake ‘self-directed learning’ with support from the provider and/or the employer depending on the mode. The location of where this self-directed learning is undertaken does not have an impact on the mode used for funding. Supported self-directed learning can look like but is not restricted to:

  • learner engages with lessons in their own time
  • learning is not instructor-led and isn’t delivered in real time
  • learner engages with pre-recorded lectures or online tutorials, or
  • Learner completes assignments.

Examples of how the provider/employer may be able to support a learner when undertaking self-directed learning could include:

Provider:

  • Targeted assignments to increase knowledge and understanding of specific subjects or skills
  • Online quizzes or exams.

Employer:

  • Providing study time or adjusting working schedule to enable learner to complete lessons or assignments by their deadline
  • Targeted on the job learning or experience to increase knowledge and understanding of specific skills and expertise.

Subcontracting arrangements

Formalised partnerships with other providers are possible, as long as mutual obligations are clearly documented and adhered to and the arrangement complies with funding conditions set by TEC. Subcontracting arrangements need to be approved by NZQA and TEC and formalised by an agreement between the two parties.

Temporary work experience, internships and practicums

Temporary work experience and placements add value to programmes and play an important part in learning and career success, both for technical and employment skills.

For transparency, the learner, provider and employer must be clear on the obligations and boundaries of these arrangements. An ‘internship’ doesn’t necessarily mean the learner is employed but the legal requirements must be understood by all parties. Further information on the legality of internships and employment can be found on the Employment New Zealand website.

All internships (regardless of the learning setting) will be funded through the relevant provider-based mode.

Suitable, meaningful and sustainable employment

Suitable and meaningful employment refers to employment that provides opportunities within the same industry as the qualification of study, and employment that aligns with the learner’s current skill set and capability. This enables the learner to continue their learning journey and career development.

Sustainable employment refers to ongoing employment that contributes to career aspirations and goals, with any specific employment conditions such as hours of work or type of work suitable for the individual learner.

As each individual’s definition of suitable, meaningful and sustainable employment will differ, the provider and the learner will work together to define what such employment means for the individual learner.

The employer continues to have all the same obligations under employment legislation regardless of the provider’s role in looking after pastoral care for the learner.

There is an expectation of overall alignment to the Government’s Employment Strategy.

Relevant information

Modes of Delivery FAQs

Question Response
Who decides what Mode of Delivery a programme fits into?

For the purposes of 2023 indicative funding allocations - the TEC will determine this based on the data which providers reported in 2021. For example, if a TEO reported 2021 course enrolments as extramural in the SDR, TEC will assume that the programme will fit under the Provider-Based – extramural mode.  If the TEO used the ITR to report learners in 2021, TEC will assume the programme fits under the Work-Based mode.

How do unpaid volunteers, interns, and those undertaking temporary work experience/clinical placements or similar, fit in the modes?

Where there is no employment relationship nor expectation that the programme of study will result in formal employment due to the direct involvement of the provider (regardless of whether the learner is paid or unpaid) such learners will be funded under the relevant provider-based mode. 

To meet the definition of work-based learning, the learners must be in paid employment or a volunteer in the nature of employment. To meet the relevant conditions, we expect the volunteer to have a sustained relationship beyond the learning or training period with set hours and a written agreement recording this working relationship. 

Will fee regulation settings for example, the annual maximum fee movement (AMFM) – apply to fees for work-based learning previously funded through the Industry Training Fund?

Further work is underway to clarify how fee regulation settings will apply across the modes of the UFS, including to learning previously funded by the Industry Training Fund. Any changes to fee regulation settings for 2023 (including the AMFM rate) will be subject to consultation via Gazette notice in mid-2022.

There are likely to be more significant changes to fee regulation settings from 2024 following the completion of a review of fee regulation settings and employer contributions for vocational education and training.
How will the TEC know which rate to pay for a learner when that learner is undertaking study under more than one mode in a year?

To illustrate how we expect rates to be applied, the example below is where a learner first starts their learning journey under the Provider-Based mode, is then assisted by the TEO to find employment related to their provider-based studies, and then moves to learning under the Work-Based mode (with the same TEO). During the period under the Work-Based” mode, the learner undertakes a 2-week block course.

Initially the learner will be reported as Provider-based under SDR source of funding (SOF) 37 - Delivery Component. This will indicate that Provider-based (or Provider-based: Extramural) mode is applicable.

The TEO will support the learner to enter suitable, meaningful, and sustainable employment that provides for work‑based learning opportunities.

The learner’s enrolment in the SDR ceases, and the learner is “enrolled” in the ITR

The TEO will also need to submit the Workspace2 Work-based: pathway to work data template; TEC will use this to check and confirm the relevant data points to establish whether the pathway to work mode applies, and for up to 3-months or 30 credits, whichever comes first, will apply the Work-based: pathway to work mode rate.

At the end of the initial 3-month period, the enrolment data in the ITR will be recognised as the normal Work-based mode.

If the learner undertakes a two-week block course (Provider-based mode) during this time that relates to their work-based learning:

  • The TEO must report the block course through the SDR under SOF11 and submit the Workspace2 Work-based: Mixed-mode data template.
  • During the block course, the learner also remains “Active” in the ITR;
  • The TEC will use the data reported in the SDR (SOF11), and the ITR and the Workspace2 Work-based: Mixed-mode data template to match the data and calculate the volumes that are applicable to both the:
    • Work-based mode, and
    • Provider-based mode.

 Provider-based: extramural FAQs

Question Response
What is meant by extramural learning?

The learner is enrolled with a provider with the learning occurring away from a provider site but not in the workplace.

The delivery primarily involves the use of postal services/hard copy workbooks, or an online learning platform with limited face-to-face contact (either online or in-person) between the provider and learner. Where online learning platforms are used, they can also involve group lectures, tutorials, etc.

This mode is not intended to cover any current or future delivery which needs to move online for a period due to COVID‑19 related restrictions on campus‑based activity. If provider-based provision needs to move online for this reason, the provider-based rate will still apply.

Work-based: pathway to work FAQs

Question  Response 
When can a learner move from Provider-based to Work-based: pathway to work?

The Work-based: pathway to work mode applies when a learner has been awarded some credits in either the Provider-based or the Provider-based extramural modes in a relevant programme of study (e.g, same field of study or industry).

The learner is only able to transition from provider-based or provider-based: extramural mode, to work-based: pathway to work mode, to continue their learning towards a NZQA approved qualification, when:

  • the employment opportunity is relevant to their continuing programme of study, and
  • the training covers up to 30 credits or a period of 3 months (whichever comes first).

Micro-credentials and training schemes are not eligible for funding under this mode.

What is meant by ‘similar’ in the description of Work-based: pathway to work mode of not having ‘received work-based learning for at least six months in this or ‘similar’ qualifications? 

The overall intent is that the Work-based: pathway to work mode will support learners to transition from provider-based into work-based learning in a related area. This shows that the transition is intentional and has been supported.

To be eligible for the Work-based: pathway to work funding the learner must not have been enrolled in TEC funded work-based learning for at least six months prior to them studying the same (or a similar) qualification.

When we consider whether the learner may have previously been enrolled in similar and related qualifications, the TEC will consider the course funding category, the New Zealand Standard Classification of Education (NZSCED) code, and any overlap in learning outcomes between the programmes, allowing for the fact that there may be variations on a case-by-case basis.

The learner can have an existing job elsewhere, as long as it does not involve funded work-based learning, as the pathway to work mode is about finding the learner a job in their field of study that will allow them to continue their study.

If a provider delivers work-based and provider-based elements, would they be funded under both modes? Yes, though not at the same time. Further information will be provided about how the data collection systems (the Single Data Return (SDR), Industry Training Register (ITR) and Workspace2) will enable the TEC to apply the relevant funding rate depending on the mode of delivery
What is the difference between a training plan, a training agreement, and an individual learning plan?

Training agreements are part of the employment agreement between the employee and employer concerned as per the Education and Training Act 2020 (section 362). They are an agreement between the individual/learner and employer.

The learner, employer and the provider enter into a training agreement. This training agreement forms part of the learner’s employment agreement.

Once finalised, the training agreement can be used to develop a Learning or Training Plan. The Training Plan is generally agreed between the learner, provider and employer, detailing the support provided to assist the learner to achieve their learning goals/requirements, and how progress will be measured by the provider.

TEC expects that training plans are created for all learners as part of accepted good practice, even when they are studying entirely in the Provider-based mode.

What if a learner requires more than 3 months support to pathway to work? What is the rationale for 3 months?

All learners should be supported throughout their learning.  The aim of the Work-based: pathway to work mode is to provide an extra level of support for learners to successfully transition from provider-based to work-based learning in suitable, meaningful and sustainable employment. The provider plays an active role in getting the learner a job and signing up both them and the employer to a training agreement.

The training which continues beyond the initial three months will be funded under the relevant mode and, in the majority of circumstances, we expect the subsequent training to be delivered as work-based learning (funded under the work-based mode).  Providers continue to receive any learner component funding they are eligible for when a learner moves to work-based learning. This funding enables providers to provide on-going support to work-based learners.

Can any learner who is in a provider-based course (who finds employment before the completion of their course or programme) be eligible to move to the Work-based: pathway to work mode?

In the Work-based: pathway to work mode the provider is funded to actively assist the learner to find suitable, meaningful and sustainable employment and then support the learner to establish their learning in the workplace.  It will also involve signing a tripartite agreement between the three parties (learner, provider and employer).

If the provider is not active with respect to the learner gaining employment and supporting the learner to transition to work-based learning, then this learner would not be eligible for the pathway to work funding rate, but instead would be in the Work-based mode.

Will Work-based: pathway to work apply from when a learner enrols in a course, or can an individual training plan be developed at any time to support getting the learner into employment?

This mode and funding rate applies when:

  • The learner initially enrols in Provider-based learning and completes some preliminary credits; then
  • The provider actively assists them to gain employment (relevant to the programme being studied) and supports them in the transition into “learning whilst working”, including signing up both them and the employer to a tripartite training agreement.

The TEC is referring to training plans as agreements that relate to learning whilst in employment. However – TEC’s expectation is that learning plans for all learners would be created as part of accepted good practice, even though they are studying entirely in the Provider-based mode. The initial provider-based training plan should include a plan to get the learner into work with a training agreement

Where do micro-credentials fit in the modes of delivery? Micro-credentials which meet the requirements for TEC funding can be funded in all the modes of delivery under the UFS, except for the Work-based: pathway to work mode.
How does the Work-based: pathway to work period of up to 3 months or 30 achieved credits (whichever comes first) ensure the provider can support all types of learners to establish their learning?

All learners should be supported throughout their learning, including those who have unique or additional needs.  The aim of the Work-based: pathway to work mode is to provide an extra level of support to ensure learners are maintaining their learning and becoming work- ready while the provider plays an active role in getting them a job and signing them and the employer up to a training agreement.

The Work-based: pathway to work mode is about transitioning the learner from provider-based learning to learning in the workplace, hence, the 3 months or 30 credits is expected to be sufficient to cover the transition period.  The training that continues beyond the initial three months or 30 credits will be funded under the relevant mode and, in the majority of circumstances, we’d expect the subsequent training to be delivered and funded as work-based learning.

If the student takes 1-2 years to get the 30 Achieved Credits is that still allowed?

Whilst there is no specific requirement on a learner to complete their study within a certain timeframe, we expect providers to ensure learners enrol in suitable programmes and are supported to complete their study within a reasonable amount of time.  The Work-based: pathway to work mode is about transitioning the learner from provider-based training to learning in the workplace while they are employed.

This is why the funding rate under the Work-based: pathway to work mode is only available for the first 3 months or completion of 30 credits within a workplace to acknowledge the active role expected of the provider in finding the learner employment that will enable them to continue their learning and supporting the learner in their transition to learning on the job.

What does ‘sustainable employment’ look like as described in the Work-based: pathway to work mode?

The Work-based: pathway to work mode aims to support learners to gain suitable, meaningful and sustainable employment relevant to their programme of study.

The specifics of what this looks like can be defined between the employer, the provider, and the learner. Meaningful and sustainable employment could mean that the employment is aligned with career aspirations, lifestyle, provides for on-going employment, etc.

TEC will require evidence of employment for the Work-based: pathway to work mode.

When will the payments for the Work-based: pathway to work mode commence?

Payments will be calculated and made at the end of the year when all the relevant data and supporting information is available.

In future, funding could include up-front allocations

Is there a minimum number of hours of employment to be in the Work-based mode? Any prerequisites a learner must meet before they are eligible to undertake work-based learning is to be agreed between the relevant parties. In regard to hours of employment, this should be agreed between the employer and the learner and outlined in their written employment agreement.
Where will group training schemes approved for funding in 2023 fit under the UFS? For the purpose of the Modes of Delivery, Group Training Schemes will be recognised under the Work-based mode. This recognises the unique learner pathway which they facilitate.
Will Training Agreements be required for those who are enrolled in work-based training? Yes, a written tripartite agreement is required for both Work-based and Work-based: pathway to work modes. It is also required for the Assessment and verification mode (normally contained within an employee’s employment agreement).
Will student loans be available to learners in Work-based mode? No. Student Loans are not available to learners in Work-based, Work-based: pathway to work, or  Assessment and Verification modes.
What is meant by supported ‘self-directed’ learning?

Supported ‘self-directed learning’ can look like but is not restricted to:

  • Learner engages with lessons in their own time
  • Learning is not instructor led and isn’t delivered in real time
  • This can include engaging with pre-recorded lectures or online tutorials or completing assignments
What are New Zealand apprenticeships? Information on New Zealand Apprenticeships can be found here.
Where do apprenticeships sit under the Modes of Delivery? For 2023, apprenticeships will continue to exist and be funded as work-based learning. Further information will be available on apprenticeships for 2024.
How long can the gap between enrolment in courses be? TEC considers a gap between enrolments of 90 days or more between a course end date and a new course start date to be a new enrolment.
Why are PTEs not able to apply for Work-based funding until 2024?

The PTEs involved in 2023 work-based provision will be those named in TITO transition plans (or who are already delivering work-based training through the Managed Apprenticeships scheme).

TEC is undertaking a robust process in conjunction with all TITOs and their stakeholders to agree which PTEs are best placed to be in the initial group taking on a TITO’s Arranging Training function, and thus to be funded through the UFS Work-Based mode from 2023.  These PTEs have already demonstrated their readiness to successfully deliver high quality provision and outcomes in vocational education, with greater support provided for learners.

What happens to PTEs not able to apply for Work-based funding until 2024?

For PTEs not in this initial group described above, we do understand that some have already looked at potential business opportunities that work-based delivery might provide.

However, a key goal of the reforms is to put learners, Industry and WDC and RSLG needs more firmly in the centre, and for providers (including PTEs) to develop and deliver new programmes in response to their needs.  Building the organisational capability to do this really well (including the implementation of completely new reporting systems) takes time and effort and should not be underestimated.

During 2023, we will expect providers to focus on building their capability and relationships so that the outcome of this work is clearly evident when seeking work-based funding for the first time in 2023 for 2024.

For more information, read the Modes of Delivery FAQs.