National Vocational Qualifications (NVQs) or Competence-based qualifications reflect the skills and knowledge needed to do a job effectively. They are work- based qualifications that give learners the opportunity to demonstrate their competence in the area of work or job role to which the qualification relates.
Source: Pearson 2014, UK

(competence-based): Sometimes means the same as ‘outcome-based’, i.e. where qualifications are based on clear statements of what the learner must know or be able to do. Sometimes ‘competence’ refers to occupational competence, i.e. a specific type of outcome referring to what the learner must be able to do to perform a work role competently
Source: ILO (SED) 2007, Global