This document focuses on possible market failure in the firm-based vocational training market. It considers that training requirements may be complex. If this is the case, they will be unlikely to be specified in a legally enforceable contract. This makes is hard for firms to commit to training provision. Training tends to be lower where there is no commitment. Firm based vocational training schemes tend to be more successful in locations where commitment to training provision is established. The authors present a model of firm provided training, illustrating best practice.