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This paper explores the differences between learning in the workplace and formal learning in a college or university. One of the important differences between these two contexts is proximity, in the case of a traditional college or university, to learning resources, information resources and academics/teachers and in the case of learning in the workplace, proximity to the workplace itself, the very context in which the learning must be applied. The availability of online resources and online courses is vital to the development of learning in the workplace and a crucial development is the facility for dialogue offered by new technologies, for example through email, online noticeboards and online chatrooms. The paper goes on to examine some of the educational and social consequences of this development, drawing on the educational theory of Ivan Illich. The paper outlines his notion of a ‘deschooled society’ in which educational institutions are supplanted by new structures, with a new emphasis on ‘learning webs’ which can be mediated by the online technologies which are rapidly becoming much cheaper and easier to use. Dialogue between learners over a distance, especially those with specialised interests, will gain new importance. Dialogue among learners and peers can be supported by online intervention by teachers and subject experts. These changes will be felt first in higher education, where a small number of large institutions will vie for a significant share of the global educational market. Learning in the workplace and educational provision in the TAFE sector are likely to be profoundly affected and the potential for the growth of learning in the workplace is large. Inevitably, these developments will challenge the role of formal learning in colleges and universities, including their current dominance in major areas of vocational education. In conclusion, the paper touches on the possible social and economic consequences of deschooling.