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The implementation of competency-based assessment processes, particularly for emerging vocational education and training (VET) in senior schooling is thought to be generally poorly understood. By examining current international and national understandings of competence, the concept of competence can be further demystified, and its implications for schools further delineated. This paper presents 'competence' as a critical field for research and practice in VET and argues for an interpretive-relational approach to the development of competence. This approach should include all elements of a workplace environment that impact on vocational learning and practice.