Ms Dodd took the helm of TasTAFE following the controversial resignation of former chief executive Stephen Conway in 2017 after a damning Integrity Commission report exposed details of misconduct and favouritism.

On Monday, TasTAFE board chair Mike Blake announced Ms Dodd would not be renewing her contract, which is due to expire on January 2021.

"Ms Dodd has had a profound impact on TasTAFE by instigating important changes, which have seen TasTAFE emerge as a stronger student-focused organisation," Mr Blake said.

However, the Australian Education Union Tasmania TAFE president Simon Bailey said the departure of Ms Dodd signified further uncertainty regarding the future of the organisation.

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Mr Bailey said when Ms Dodd was appointed, the discourse had been about a sustained future for the organisation, and it was disappointing after only three years she will leave the role.

He said it had not been smooth sailing and the union's TAFE members still had serious concerns over some of the directions the vocational education provider was taking.

Issues such as statewide consistency at the expense of regional differences, standardised assessments, and putting profits over student outcomes were all issues the union still needed a resolution on.

The troubled education provider has faced criticism in the past, due to high staff turnover, which led to the delays of courses and some students have waited three years to get their certificates.

A marker shortage also led to nursing students having their exam results delayed and electrotechnology students had their entire course delayed for months after a sudden teacher departure.

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However, under her tenure, Ms Dodd secured the maximum seven years of registration with the Australian Skills Quality Authority after navigating an intensive review and an independent audit following the departure of Mr Conway.

Education Minister Jeremy Rockliff said Ms Dodd had taken TasTAFE to a stronger place.

"Under Ms Dodd's leadership TasTAFE has become a more responsive and industry-focused training provider which is reflected in high employer satisfaction levels," he said.

"More recently, Ms Dodd has ensured TasTAFE has acted quickly in relation to student safety during COVID-19, overseeing the temporary transition to digital learning and she is now leading the transition of students back onto TasTAFE campuses.

"Throughout these challenges and times of change, Ms Dodd has fostered a strong student-centred culture with decision making always focused on what will provide the best experience for students."

A recruitment process will be underway in due course to replace Ms Dodd when her contract ends in 2021.