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This paper explores and critiques traditional and contemporary understandings of competence and presents research examples pertinent to vocational education. It is argued that ‘competence’ is a critical field for research and practice in vocational education. An alternative model of competence which includes all elements of a workplace environment that impact on vocational learning and practice is recommended. This approach which is based on phenomenographic theory represents a new way of looking at competence where the individual’s dynamic conception of the work, and his/her relationship to it are recognised. The interpretative-relational model of competence places the meaning of engagement in practice for the worker at the centre stage.