What the COVID-19 crisis means for Australian Apprenticeships

Group Training Organisations

The National Australian Apprentice Association (NAEN) is the peak industry association for Group Training Organisations (GTOs). GTOs are the largest employer group of apprentices and trainees in Australia.

A GTO is the legal employer of the Australian Apprentice, on behalf of a host employer. They provide recruitment services to employers, and may be able to find an apprenticeship or traineeship position for a job hunter. The GTO provides support to the apprentices, trainees and employers they work with.

GTOs are an important part of the Australian Apprenticeships landscape, as they provide stability for the apprentices and trainees in their employment, particularly when it comes to retaining or recommencing.

JobKeeper

JobKeeper is administered by the Australian Tax Office, and is $750 per week for retained employees including Australian Apprentices. Eligibility requirements are for a small to medium that they have a 30% reduction in turnover, large employers with a 50% reduction, and charities and not for profits a 15% reduction.

Employers are not able to get both the Supporting Apprentices and Trainees and JobKeeper allowances. Many employers who are not eligible for Supporting Apprentices and Trainees may be eligible for JobKeeper. We could see a migration from Supporting Apprentices and Trainees to JobKeeper as it pays 100% of an Australian Apprentices wage. For example, a second year apprentice could earn $500 a week so the $750 payment effectively gives the apprentice a 50% pay rise.

There could be some businesses that will fall through the gaps as the JobKeeper payment will not come into effect until May 2020 and some employers may not be able to afford to pay their staff the required levels until then. Many businesses that have already gone into hibernation such as the hospitality and personal service industries may not reopen and may not undertake the necessary paperwork to access payments for staff.

Current and suspended apprentices and trainees, and ASbAs, may be eligible to receive JobKeeper if their employer meets all other eligibility criteria. Suspended apprentices and trainees who do not receive JobKeeper may be eligible for JobSeeker or Youth Allowance, and/or other support payments.

Job hunting

During the COVID-19 situation, job hunting has become more challenging than usual for many people with many businesses not running to their full capacity. It is therefore important that job hunters are realistic about their chances of finding employment. For example, with closures to much of the hospitality sector, there are significantly fewer than usual job openings.

There are several industries that are currently recruiting, either because business as usual has not changed, or because of increases in demand during the current climate. These include areas such as health care and community services, some areas of manufacturing, and some trades.

Using your networks continues to be a highly effective way to find a position. You can find more tips on our How to find an apprenticeship page.

DESE also have a jobs hub where employers are posting their postions; these are mostly not apprenticeships and traineeships, but are a good way to stay engaged in the current labour market.

In-training support

AASN providers support approximately 40,000 apprentices each year through their in-training support service. Most of these apprentices are at risk of dropping out and individualised plans are tailored to best suit their needs.

NAAA has approached the Department of Education, Skills and Employment with a proposal to extend this service to assist with recommencement or working with another employer for apprentices that are cancelled or suspended. This will overlap with NAEN’s displaced apprentices and trainees register project.

If you are an apprentice or trainee who's contract has been suspended or cancelled, please contact your AASN or GTO to find out more about the support you can access.

DESE Initiatives

The Department of Education, Skills and Employment (DESE) has a range of information about the COVID-19 situation, and what it means for people in the Australian education system. Their information hub is regularly updated with the latest information.

This includes the latest information about JobKeeper and JobSeeker payments, Supporting Apprentices and Trainees, and other government initiatives to support employees, employers, students and training providers.

Staying updated

AATIS is aiming to collate information and resources for apprentices and trainees, and employers during COVID-19. The Australian Apprenticeships Pathways COVID-19 Information page will be regularly updated with new information as it becomes available.

To share information and resources, or to stay abreast of changes in the industry, join one of the Active AATIS Facebook groups:

• Active Industry by AATIS for those working in the Australian Apprenticeships sector
• Active Apprentices by AATIS for apprentices, trainees, job hunters and career researchers.

If you have any questions about Australian Apprenticeships, including about how the COVID-19 situation is affecting apprenticeships and traineeships, please contact the AATIS team on 1800 338 022 or through the Contact Us page.