Introduction

As the New Zealand government has announced the final Reforms for Vocational Education (RoVE) with the right intention to build a cohesive education system for vocational studies.

The final announcement on reforms centers a united system among employers, learners, regions, and communities of New Zealand. The reform implicates 16 existing Polytechnics and brought them under a single umbrella.

The concluded workings of the reform are drafted in the New Zealand Education Amendment Act 2020, which came into action on 1st April 2020, of Vocational Education & Training Reform. It amends the Education Act of 1989 and other relevant legislation. The reformed Education Amendment Act of 2020 provides:

  • The New Zealand Institute of Skills and Technology will be re-established as a tertiary educational institution under the Education Amendment Act 2020 and a crown entity.
  • The existing Polytechnic will convert to the New Zealand Limited Liability Company registered under the Companies Act 1993. It will also become a Crown entity subsidized with NZIST as its sole shareholder.
  • The legal name of existing Polytechnic institutions will be changed to Private Limited, the corresponding NZIST subsidiary.

Hence, this article, therefore, explains the operational effects of the above mentioned legal changes on moving forward and also, outlines the administrative changes to implement.

How does New Zealand Education Amendment Act 2020 Impact?

The Education Amendment Act 2020 impacts ‘lift and shift’ of the existing Polytechnics business, operations, employees and enrolled students to the corresponding NZIST subsidiary in the following way:

1. Starting on the commencement date, 01-04-2020, the existing Polytechnic’s rights, assets, and liabilities will automatically shift to the name of corresponding NZIST subsidiary.

2. Both the existing Polytechnic and the corresponding NZIST subsidiary are treated as the same person for the purpose of “Inland Revenue Act”.

3. The Education Amendment Act 2020 also acts upon in general. It states that every reference to the existing Polytechnic in any enactment, instrument, agreement, deed, lease, application, notice or another document before the commencement date of 01-04-2020 must be read as a reference to corresponding NZIST subsidiary. It simply means that any existing agreement between you and the existing Polytechnic will not be updated to reflect any changes in its legal name.

Therefore, these provisions of the Education Amendment Act 2020 are clearly intended to ensure maximum operational continuity between the existing Polytechnic and the corresponding NZIST subsidiary. It is done in order to continue “business as usual” from the date of commencement.

Lastly, the business partners are key to the continuous process of operations. Therefore, they are thought to proceed with a smooth transition.

If you have any concerns regarding the changes or to understand the process of transition, kindly get in touch with NZIST Establishment Board.

You can read in detail about the Reforms of Vocational Learning to understand the New Zealand Education Amendment Act 2020.

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