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Employment Types & Workforce Structure

What is a Transitional employment?

Updated 14 Jan 2026 5 min read

Transitional employment in Australia refers to temporary work arrangements designed to help individuals move from unemployment, disability, or other circumstances into sustainable employment. These programs often involve supported work placements, skill development, and gradual transition to mainstream employment.

Understanding transitional employment

Transitional employment helps people overcome barriers to work through structured support and gradual integration. In Australia, various government and community programs facilitate these pathways, with Fair Work protections applying to all workers.

Disability Employment

  • Disability Employment Services (DES)
  • Supported wage system
  • Workplace modifications
  • Ongoing support

Return to Work

  • Jobactive programs
  • Workforce Australia
  • Skills training
  • Job placement support

Transitional employment programs in Australia

Key programs supporting transitional employment include:

Government-funded programs

Disability Employment Services (DES): Helps people with disability find and keep employment with ongoing support
Workforce Australia: Employment services for job seekers including skills assessment and job matching
Transition to Work: Supports young people (15-24) to move into work or education
ParentsNext: Helps parents with young children prepare for employment

Employer benefits and incentives

Employers participating in transitional employment may access:

  • Wage subsidies: Financial assistance to offset training and support costs
  • Workplace modifications: Funding for equipment or adjustments via JobAccess
  • Ongoing support: Employment services provide workplace assistance
  • Diversity benefits: Access diverse talent pool and meet inclusion goals
  • Trial periods: Assess fit with support before committing

For employers

  • Wage subsidies: Reduce hiring costs
  • External support: Employment service assistance
  • Loyal workers: High retention rates
  • Inclusion: Meet diversity objectives

For employees

  • Support: Ongoing assistance in workplace
  • Skill building: Develop work experience
  • Gradual transition: Build confidence over time
  • Pathway: Route to permanent employment

Australian compliance tip

Transitional employees have the same minimum entitlements as other workers under Fair Work legislation. Supported wage arrangements for people with disability must be assessed and approved by the Fair Work Commission. Regular award rates apply unless a supported wage assessment is in place.

Managing transitional employees

Effective management includes:

  1. Partner with services: Work with employment service providers for support
  2. Clear expectations: Define role requirements and progression pathways
  3. Flexible rostering: Use rostering software for gradual hours
  4. Award compliance: Apply correct Modern Award or supported wage rates
  5. Workplace support: Provide mentoring and reasonable adjustments
  6. Progress review: Regular check-ins on development and transition goals

Common mistakes with transitional employment

Underpaying supported workers

Applying incorrect wage rates without proper Fair Work Commission assessment.

Insufficient support

Not providing adequate workplace support or reasonable adjustments.

No progression plan

Keeping workers in transitional arrangements without clear pathways to permanent roles.

Key takeaways

Transitional employment in Australia helps people overcome barriers to work through supported pathways. Government programs provide funding, support services, and incentives for employers to participate.

Employers benefit from wage subsidies, support services, and access to motivated workers. Using workforce management software helps manage flexible hours and track progress for transitional employees moving toward sustainable employment.

Frequently asked questions

Steve Harris

Written by

Steve Harris

Steve Harris has spent over a decade advising businesses in hospitality, retail, healthcare, and other fast-paced industries on how to hire, manage, and retain great staff. At RosterElf, he focuses on sharing actionable advice for business owners and managers — covering everything from smarter interview techniques and compliance with Australian employment laws, to building positive workplace cultures.

General information only – not legal advice

This glossary article about transitional employment provides general information about Australian employment law and workplace practices. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.

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