A bill to reform TasTAFE has passed through the Legislative Council with only minor amendments.
The bill was passed seven votes to five with independent Rob Valentine voting against the bill with Labor members.
The Gutwein government agreed to several amendments including a clause for an independent review of the state's TAFE system six years after the transition.
Education Minister Sarah Courtney said the government was committed that no staff would be worse off under the transition.
"Underpinning this new structure for TasTAFE is a $98.6 million investment for 100 more teachers, new and improved training facilities, and better access to training for regional and rural Tasmanians," she said.
"I am looking forward to working closely with TasTAFE staff, students and leadership as the government works to operationalise this new model."
Unions Tasmania secretary Jessica Munday said the bill would make insecure work a bigger problem in Tasmania as it essentially puts public service workers into a private sector jurisdiction under the Fair Work Act.
"This is an attack on TasTAFE, an attack on learning, and an attack on teachers and TasTAFE staff," she said.
"It will also threaten the job security of every single person working at TAFE at a time when we can least afford to lose more secure jobs.
"Tasmania already has the highest level at 26.6 per cent of casual work in the country."
Labor's workplace relations spokeswoman Sarah Lovell said the bill was a declaration of war by the Liberals against the public sector.
"This bill fundamentally undermines industrial relations for TasTAFE teachers and staff," she said.
"The so-called guarantees from the government are hollow and are only to meet their basic legal obligations.
"The government have ignored the concerns of staff throughout this entire process and they have ignored what has happened in other states where TAFE has been dismantled and commercialised."