---
title: "Skills First Contract Update: Disallowed Persons"
description: A part of the Skills First contract that has always confused providers, the Disallowed Persons requirement states that a contracted RTO should not engage/employ/contact/deal with, a disallowed person.
image: https://rtologic.com.au/hubfs/Blog-Images/Skills-First-Contract-Update-Disallowed-Persons.jpg
---

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# Skills First Contract Update: Disallowed Persons

by [RTO Logic](https://rtologic.com.au/insights/news/author/rto-logic)

 1 min read

 Feb 12, 2020, 4:15:00 PM

#### Disallowed Persons

A part of the Skills First contract that has always confused providers, the Disallowed Persons requirement states that a contracted RTO should not engage/employ/contact/deal with, a disallowed person.  What actually constitutes a disallowed person has always been ambiguous, but the more common complaint by Skills First providers is the lack of a national register (or equivalent), making it very difficult to determine whether someone can be classified as a disallowed person.

The current fact sheet provides clarity on the definition. A disallowed person can be:

- - - An individual; or
          - An organisation

 

#### Disallowed Organisations

Disallowed organisations must have been an RTO that was subject to one of the actions described in the definition of disallowed person. Those actions being:

- - - Having had its registration status revoked, cancelled or suspended
          - Having had restrictions imposed on its operations that would affect its ability to provide services equivalent to the “Training Services”

So…what are Training Services you may ask

 

#### Training Services

Training services can include:

- - - Student attraction activities (marketing and advertising)
          - Provision of information to students (brokers, RTO delegates, etc.)
          - Conducting PTR sessions
          - Testing for eligibility
          - Conducting enrolment sessions
          - Developing or documenting the training plan
          - Levying fees (including concessions, exemptions, waivers)
          - Training/assessment delivery
          - Collecting and maintaining evidence relating to all of the above points
          - Data reporting activities (SVTS uploads, responding to SVTS enquiries)

 

 

#### Disallowed Individuals

Disallowed individuals must have been a “relevant person” at an RTO that was subject to one of the above actions. By definition, a “relevant person” would be someone who:

- - - Held a sufficiently high level within the disallowed organisation (determined as having exercised a material degree of control or influence over the management or direction of the organisation)

 

#### Our Compliance Tips

To ensure that your organisation addresses the disallowed persons requirement of the contract, we recommend the following:

- - - Ensure your employment process includes a requirement for you to conduct due diligence on the candidate’s employment history such as referencing public registers (like the one on the ASQA website)
          - Ask your new employee to sign a declaration stating that they are not a disallowed person
          - Retain evidence on the employee file demonstrating you undertook due diligence
          - Ensure your staff understand the contractual requirements in relation to disallowed persons

[Download the Disallowed Persons Fact Sheet Here](https://rtologic.com.au/hubfs/20200210_Disallowed_PersonsV1-1_FINAL.pdf)

 

- Tags: [Compliance](https://www.rtologic.com.au/tag/compliance/), [Skills First](https://www.rtologic.com.au/tag/skills-first/), [vet](https://www.rtologic.com.au/tag/vet/)

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