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Chapter 20. Observational Work Experience

Department wording for Chapter 20, Observational Work Experience, from Part B: Transition to Work version 1.20.

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Workforce Australia Guidelines, Part B: Transition to Work

Australian Government Department of Employment and Workplace Relations

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Source material: © Commonwealth of Australia. Australian Government Department of Employment and Workplace Relations, Workforce Australia Guidelines, Part B: Transition to Work, version 1.20, published 3 June 2026. Used under the Creative Commons Attribution 4.0 International licence, subject to the exclusions in the DEWR copyright notice.

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Supporting Documents for this Chapter:

20.1. Chapter Overview

This Chapter outlines the requirements for Providers arranging and managing Observational Work Experience (OWE) Placements.

OWE provides voluntary, short-term, unpaid, observational work experience placements to help Participants build soft skills and gain a better understanding of the workplace or potential career opportunities.

OWE is an Activity which Providers may use for Eligible Participants who are not yet job-ready and have limited or no experience in the workplace.

20.2. Benefits of OWE

Some of the potential benefits of OWE include being:

  • an opportunity for the Participant to gain valuable exposure to workplaces and learn what Employers expect of their workers

  • an opportunity to enhance Participants’ awareness of different careers

  • an effective tool to assist Participants to build employability skills, such as attendance and communication.

20.3. Role of Providers

When arranging an OWE Placement, the Provider must:

  • ensure the Participant is eligible and suitable for OWE

  • ensure the Host Organisation is eligible to host an OWE Placement

  • ensure the OWE Placement meets the requirements set out in these guidelines

  • ensure an Activity Risk Assessment and Participant Risk Assessment have been completed by a Competent Person

  • negotiate and enter into an OWE Host Organisation Agreement with the Participant and the Host Organisation

  • monitor the OWE Placement for its duration and respond to any issues that arise.

20.4. Eligibility

20.4.1. OWE Eligible Participants

The Provider may arrange an OWE Placement for any Participant on their caseload who meets the eligibility criteria if they are of the view that the Participant would benefit from the program and the OWE Placement is suitable and safe for the Participant.

To be eligible to participate in OWE, a Participant must be:

  • aged 15 years or over

  • registered in Workforce Australia Services or Transition to Work.

Participants are not required to be receiving an Income Support Payment.

20.4.2. Eligible Host Organisations

OWE Placements can occur in:

  • for-profit organisations

  • not-for-profit organisations

  • the Provider’s Own Organisation, Related Entities or Subcontractor.

The Host Organisation requirements and prohibitions outlined in the Eligible Host Organisations section of the Activity Management Chapter also apply to OWE Placements.

20.5. OWE Placement requirements

In addition to the Activity requirements and prohibitions outlined in the Identifying Suitable Activities for Participants section of the Activity Management Chapter, OWE Placements must be:

  • no more than 4 weeks duration

  • no more than 50 hours per fortnight

  • not exceed a maximum of 8 hours per day

  • only involve observation (allowing for participation in meetings and discussions where relevant), with no tasks to be undertaken by the Participant.

OWE Placements do not need to have a reasonable prospect of future Employment with the Host Organisation. It is at the discretion of the Provider as to the number of OWE Placements a Participant undertakes (with the same or another Host Organisation).

20.6. Work Health and Safety

  • Work health and safety — For the purposes of Work Health and Safety, Providers must also refer to, and comply with, the requirements specified in the Activity Management Chapter.

As noted in the Insurance Coverage for Participant section of the Activity Management Chapter, the Department has in place insurance coverage for Participants, but there are exclusions to the Department’s policies. The Provider can still deliver OWE Placements which would be excluded under the Department’s insurance policies, if the Provider purchases alternative insurance, and the insurance is in place prior to the OWE Placement commencing.

20.6.1. Conducting Risk Assessments

An OWE Placement is a Specified Activity. Prior to referring a Participant to an OWE Placement and entering into the OWE Host Organisation Agreement, the Provider must ensure that an Activity Risk Assessment and Participant Risk Assessment have been completed by a Competent Person.

Further information on Risk Assessment Requirements is available in the Conducting Risk Assessments for Specified Activities section of the Activity Management Chapter.

  • Documentary evidence — Providers have the discretion to determine how they document Activity Risk Assessments and Participant Risk Assessments for OWE Placements but must retain Records of each Risk Assessment undertaken.

20.7. Managing OWE Placements

20.7.1. Referring a Participant to OWE

Prior to referring a Participant to an OWE Placement, Providers must:

  • determine the Participant’s eligibility for OWE

  • ensure the Participant has undertaken any background checks required for the OWE Placement

  • ensure the Risk Assessment process has been completed by a Competent Person

  • ensure the nature of the observation activities are appropriate and suitable for a Participant (see the Activity Management Chapter for further information).

In addition, Providers should identify any assistance or items the Participant will require for the OWE Placement such as specific clothing and transport. Providers should support Participants through the use of their Upfront Payment to provide these items.

20.7.2. Creating the Host Organisation Agreement

Once a Participant has been referred against the relevant Activity record in accordance with the Department’s training resources (sign-in required).

For OWE Placements, the Provider must use the OWE Host Organisation Agreement template. This template can be found on the Provider Portal.

20.7.3. Signing the OWE Host Organisation Agreement

The OWE Host Organisation Agreement must be agreed and signed by the Participant, Provider and Host Organisation prior to the Participant commencing in the OWE Placement.

As part of this process, the Provider must:

  • explain the terms and conditions to the Participant and Host Organisation to ensure they understand their obligations under the OWE Host Organisation Agreement

  • ensure all fields in the OWE Host Organisation Agreement are completed with accurate details

  • provide the Participant with the OWE Contact Card (sign-in required) and OWE Fact sheet (sign-in required), which are available on the Provider Portal.

  • Documentary evidence — The Provider must retain either a hard copy or soft copy of the signed OWE Host Organisation Agreement and provide it to the Department upon request.

20.7.4. Commencing the OWE Placement

The Provider must confirm with the Host Organisation that the Participant commenced in the OWE Placement on the start date recorded in the OWE Host Organisation Agreement, and then confirm the Participant’s commencement in the Department’s IT System.

A Participant must not be commenced in an OWE Placement outside of the Participant’s Period of Registration.

  • System step — The Provider must confirm the OWE Placement start date in the Department’s IT Systems by no later than 5 Business Days following the scheduled start date.

  • Documentary evidence — Providers must retain evidence the OWE Placement commenced (for example an email from the Host Organisation) and provide it to the Department upon request.

20.7.5. Monitoring the OWE Placement

The Provider is expected to proactively monitor the OWE Placement for its duration. The Provider should remain in contact with the Host Organisation and Participant to:

  • identify any changes in circumstances affecting the OWE Placement

  • ensure the Host Organisation is operating in accordance with the OWE Host Organisation Agreement

  • ensure any issues that may arise are quickly resolved.

Prior to the OWE Placement commencing, the Provider should discuss the preferred contact method and frequency and timing of contact with the Participant and Host Organisation to avoid disruption during the activity. The frequency of contact should also be appropriate to the length of the OWE Placement.

20.7.6. Transfer Arrangements

If a Participant is required to be transferred between Providers and the OWE Placement can continue, the transfer should be delayed until the OWE Placement concludes. The relinquishing and gaining Providers should work together to ensure the completion of the OWE Placement.

Refer to the Period of Service, Suspensions, Transfers and Exists Chapter for more information in relation to transfers.

  • System step — Where it is agreed an OWE Placement should not continue to completion, the relinquishing Provider must end the OWE Placement in the Department’s IT Systems using the appropriate end reason.

(Deed Reference(s): Clause 91)

20.7.7. Ending the OWE Placement

  • System step — Upon completion of the OWE Placement, Providers must end the OWE Placement in the Department’s IT Systems, including inputting the end date and selecting the correct exit reason.