According to the Danish Ministry of Health recommendations, workplace-based assessment (WPBA) should be a central component in postgraduate specialty training. In this review the potential impact of WPBA with regard to patient safety, medical licensing and effects on doctors' learning is explored. The utility of WPBA instruments is reviewed with respect to their reliability, validity, cost, acceptability, and educational impact. Finally, the concept of Entrusted Professional Activities is discussed in view of the utility framework, and recommendations for future practice are provided.