A key strength of the vocational education and training (VET) system is the existence of direct linkages between VET and employers. Employers play a fundamental role in apprenticeships and traineeships, whereby individuals spend most of their time learning on the job. This system of training involves a legal contract between an employer, employee and registered training organisation. Institutional VET also has strong links to work-based learning through shorter-term placements, simulation and scenario-based learning.

The emphasis on competency-based training allows employers and individuals to focus on skills that meet specific industry and employer needs while still providing portable, nationally recognised qualifications in the labour market. A number of employers also make use of informal (or non-accredited) training whilst some large industries and employers have established their own registered training organisations and firm-specific training packages.