To enter into a training contract whereby the employee receives training in the employer’s industry, or in some aspect of that industry, and the employer provides that training, or ensures that training is provided. A training contract forms part of the trainee’s employment contract/agreement.

• To establish, together with any other employer (or with other employers) in a particular industry, an organisation to set skill standards which the New Zealand Qualifications Authority is prepared to register. Such organisations (Industry Training Organisations or ITOs) are required to develop arrangements for the delivery of industry training which will enable trainees to attain the standards set, including monitoring and assessment arrangements. ITOs do not themselves provide training.
• Recognition of any ITO expires five years after it is granted. ITOs, therefore, are required to demonstrate at regular intervals their ability to meet the Act’s criteria.