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), 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 with the employer beyond the learning or training period, with set hours and a written agreement. 

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 2025 (including the AMFM rate) will be subject to consultation via Gazette notice.

How will the Tertiary Education Commission (TEC) know which rate to pay for a learner when that learner is undertaking study under more than one mode in a year?

The following example illustrates how rates are applied.

A learner starts their learning journey under the provider-based mode. The tertiary education organisation (TEO) helps them find employment related to their provider-based studies, and they then move to learning under the work-based mode (with the same TEO). During their time under the work-based mode, they undertake a two-week block course.

Initially the learner is reported as provider-based under Single Data Return (SDR) Source of Funding (SoF) 37 – Delivery Component. This shows that the provider-based (or provider-based: extramural) mode applies.

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

The learner’s enrolment in the SDR ceases, and the learner is “enrolled” in the Industry Training Register (ITR).

The TEO also needs to submit the Workspace 2 work-based: pathway to work data template. TEC will use this to check and confirm 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 three-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 Workspace 2 work-based: mixed-mode data template
• during the course, the learner remains “Active” in the ITR
• the TEC will use the data reported in the SDR (SoF11), and the ITR and the Workspace 2 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.

Where do micro-credentials fit in the modes of delivery?

Micro-credentials that meet the requirements for TEC funding are funded in all the modes of delivery under the UFS, except for the work-based: pathway to work mode.

Provider-based: extramural FAQs

What is extramural learning?

The learner is enrolled with a provider, and the learning occurs 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.

Work-based: pathway to work FAQs 

If a private training establishment (PTE) delivers a course under the provider-based mode, but then offers work experience, is that classed as the work based: pathway to work mode?

Work experience is not considered to come under the pathway to work mode. This mode is about transitioning from provider-based learning to work-based learning, and this funding is allocated to fund the additional support needed during this transition period for the learner.

For more information, see Modes of delivery. 

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 (eg, same field of study or industry).

The learner is only able to transition from the provider-based or provider-based: extramural mode, to work-based: pathway to work mode to continue their learning towards a New Zealand Qualifications Authority (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 are not eligible for funding under this mode.

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 as per the Education and Training Act 2020 (section 362). They are an agreement between the individual/learner and employer.

The learner, employer and 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 help the learner achieve their learning goals/requirements, and how the provider will measure progress.

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 three months' support to pathway to work? What is the rationale for three 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 that continues beyond the initial three months will be funded under the relevant mode. In most cases we expect this will 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.

If a learner in a provider-based course finds employment before the completion of their course or programme, are they 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 to support them to establish their learning in the workplace. It also involves signing the formal required agreements between the three parties (learner, provider and employer).

If the provider is not active with respect to the learner gaining employment and supporting them to transition to work-based learning, the learner is not eligible for the pathway to work funding rate, but instead would be in the work-based 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 the required formal agreements.

The work-based: pathway to work mode is about transitioning the learner from provider-based learning to learning in the workplace, so the 3 months or 30 credits is expected to be enough to cover the transition period. The training that continues beyond the initial period will be funded under the relevant mode and, in most cases, 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?

While a learner is not required 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 funding under the work-based: pathway to work mode is only available for the first 3 months or completion of 30 credits within a workplace. This acknowledges the provider's active role in finding the learner employment where they can continue their learning, and supporting the learner in their transition to learning on the job.

What is ‘sustainable employment’ 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 this 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 or 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 begin?

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 may include up-front allocations.

Work-based FAQs

Will work-based learners need to be domestic enrolments (as previous industry training accepted work visas and learners just needed to be employed)?

Eligibility has changed to those considered domestic learners only.

For more information, see Accredited Employer Work Visa (AEWB) holders.

Is there a minimum number of hours of employment in the work-based mode?

The relevant parties need to agree on any prerequisites a learner must meet before they are eligible to undertake work-based learning. Hours of employment should be agreed between the employer and the learner and outlined in their written employment agreement.

Will training agreements be required for those who are enrolled in work-based training?

Three formal agreements are required for both work-based: pathway to work and work-based modes to outline 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.

The required agreements must cover all relevant learner and programme information and clarify provider and employer responsibility.

More information on the agreements can be found in our general guidance on the Modes of delivery.

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
• engaging with pre-recorded lectures or online tutorials or completing assignments.

What are New Zealand Apprenticeships?

For information on apprenticeships, see Code of Good Practice for New Zealand Apprenticeships.

Where do apprenticeships sit under the modes of delivery?

Apprenticeships will continue to exist and be funded as work-based learning.

How long can the gap between enrolment in courses be?

TEC considers a gap of 90 days or more between a course end date and a new course start date to be a new enrolment.

More information

Modes of delivery – Unified Funding System

How is aviation funding calculated under the UFS?

Information on caps for aviation provision can be found in:

Global Indicative Allocation Methodology (PDF 731 KB).

Why are the trades funded lower than engineering when there is considerable capital investment in trades training?

The Ministry of Education and TEC considered benchmarking data, international comparisons and other information gathered from the sector to develop advice on the relative costs of providers delivering vocational education and training (VET) by mode and subject. This includes the cost to deliver as well as fund in trades and engineering.

Where does English as a Second Language (ESOL) learning fit under the UFS?

Level 3–7 ESOL falls into provider-based F1 category.

Do Level 7 micro-credentials fall under the UFS?

Yes, Level 7 micro-credentials do fall under the UFS. Micro-credentials are not eligible for funding under the work-based: pathway to work mode of delivery.

I’m a learner. How do I know what mode I am learning in and what should I expect from it?

For those based at a provider, your provider should be able to support you to continue your training in a work-based setting, if this is right for you. You should see no change to the qualification you are enrolled in or the support you receive. The information you received on enrolment should tell you what to expect from your programme of study. Your provider will let you know about these changes.

I’m an employer. Does this mean the training that my employees receive will change?

You should continue to work with the provider of your training to agree the best learning opportunities for you and your staff.

I’m an employer. Do I need to do anything differently?

No. You should work with the provider of your training to agree the best learning opportunities for you and your staff. 

More information

Delivery component – Unified Funding System

What are performance element incentive payments? When will they be implemented?

The learner component has an incentive payment element which will be paid to each TEO on achieving the performance expectations set by TEC.

For more information, please see Learner component.

How do TEOs apply for learner component funding?

TEOs will not need to apply for learner component funding. It will be allocated as part of TEOs’ overall funding for vocational education and training.

What is the definition of ‘low prior achievement’ (LPA)?

It applies to all learners who at the date of enrolment have not previously achieved a qualification on the New Zealand Qualifications and Credentials Framework (NZQCF) at Level 3 or above, not just those under 25.

How are learners with LPA identified by the TEC?

DR, ITR and NZQA data are used to determine LPA. If prior education records are not available for a learner, they are deemed to be LPA.

Does the LPA include equivalent qualifications achieved overseas?

Where overseas qualifications are recorded in the data, they are taken into account in the LPA analysis.

Will a student leaving high school and going into tertiary education be considered someone with LPA?

Students who have not achieved NCEA Level 3 are considered to have LPA.

Can learner component funding be recovered through the wash-up process?

No, there are no recoveries of the learner component.

Can a TEO update a disability flag retrospectively for funding purposes?

Yes, if a learner’s disability status has changed since their enrolment, and the TEO has also obtained the learner’s answers to the Disability Support Needs questions, TEOs can amend the record in the next learner file submission.

Why doesn’t the learner component apply to the assessment and verification mode?

The assessment and verification mode supports learners who are employed and receive support for their learning and wellbeing directly from their employer. Providers have a limited role focused on quality assurance of the assessment that underpins learners’ qualifications. This means providers have little direct contact with learners and limited scope to engage with and support learners.

How is learner component funding calculated for learners with more than one eligible characteristic?

We calculate funding by allocating:

• the relevant rate where a learner is identified in the data as disabled and/or having low prior achievement
• the relevant rate where a learner is identified in the data as Māori and/or Pacific
• both relevant rates where a learner is identified in the data as disabled and/or having low prior achievement and as Māori and/or Pacific (both rates apply).

Who receives learner component funding? And who decides how it is spent?

Learner component funding is allocated to TEOs. They will decide how to spend this funding in a way that supports their learners' needs.

How are disabled learners identified for the purposes of learner component funding?

Disabled learners are learners who identify as disabled on enrolment forms and learners who access disability support from providers. 

More information

Learner component – Unified Funding System