Transfer of a registered training contract - statutory (sale of business or dissolution of a business partnership)
Transfer of a registered training contract - statutory (sale of business or dissolution of a business partnership) (PDF, 271KB)
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When businesses are sold or disposed of, or a business partnership is dissolved, and apprentices and trainees are involved, a statutory transfer of their registered apprentices and/or trainees occurs, if appropriate.
The apprentice or trainee does not undergo a new probationary period with the new business entity.
The following actions relate to the training contract only, and have no impact on the continuing employment obligations that may be applicable.
The employer's business is sold or disposed of to someone else ('the purchaser')
14 days after the sale of business occurs:
- The employer must give their Australian Apprenticeship Support Network (AASN) provider or the Department of Education and Training written notification of the sale of business.
- The purchaser must give their AASN provider or the department written notification of their agreement to continue training the apprentice or trainee under the training contract.
The training contract is taken as transferred to the purchaser on the day agreed between the employer and the purchaser/new owner.
However, if the purchaser or new owner
does not agree to continue to train the apprentice or trainee under the training contract, the purchaser/new owner must provide written notification to their AASN provider or the department, before the sale of business takes effect. Upon this notification, the department will to cancel the training contract.
The employer is a partnership that has dissolved, and 1 or more persons who were partners prior to dissolution will continue the business
The training contract is taken as transferred to the remaining partner(s) when the winding up of the affairs of the dissolved partnership is complete.
14 days after the dissolution of the partnership:
- The employer must provide written notification to their AASN provider or the department of the event.
- The new employer must provide written notification to the AASN provider or the department of their agreement to continue the training contract.
For each of the above scenarios, the
ATF-041 Notification of change of ownership/statutory transfer form can be used.
Partnerships completely dissolved
Where the employer is in a business partnership, and the partnership dissolves, and there is no continuation of the business by any of the partners, the employer must advise their AASN provider or the department, by signed notice, within
14 days and the training contract will be cancelled.
Advising the training organisation
Where statutory transfer occurs, the new employer and the apprentice or trainee must advise the supervising registered training organisation, and arrange for a new training plan to be completed within
28 days after the transfer of the training contract.
If the transfer results in a change of the training organisation, the employer must give the replaced training organisation at least
14 days' signed notice that they are being replaced. A new training plan must be developed with the new training organisation and signed by the parties within
28 days after the replacement date. The AASN provider or the department must also be advised of the change of training organisation using the
ATF-010 Change of (supervised registered) training organisation form.
For further information
- Fair Work Ombudsman on 13 13 94 regarding the employment obligations
- their nominated AASN provider
- Apprenticeships Info on 1800 210 210.