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Termination on the Grounds of Ill-health

Date last modified: 22/08/12
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Introduction

1. Termination of employment on the grounds of ill-health relates to situations where the services of an employee, other than a casual employee, are terminated because the employee has been medically examined and found to be unfit to perform their duties.

2. The following procedure applies where the health of an employee is likely to prevent them from carrying out their normal duties in the forseeable future and their employment is governed by the University's current Enterprise Agreement. The procedure to be followed for employees governed by other industrial instruments may differ.

Medical Examinations

3. Where an employee's capacity to perform the duties of their position is in doubt because of ill-health, the employee's supervisor should discuss the situation with their HR Consultant. If considered necessary, arrangements will be made for the employee to undergo a medical examination by a medical practitioner chosen by the University.

4. Where an employee is required to have a medical examination, the University will provide the employee concerned with at least one month's written notice of this requirement. The examination must be completed within one month of the written notice to the employee.

5. The University will pay the costs associated with the medical examination and a copy of the Medical Practitioner's report will be made available to both the University and the employee.

6. The employee will not need to have a medical examination if they have applied for a temporary or permanent disability superannuation benefit. Where the employee receives a temporary disability benefit and subsequently the superannuation fund decides that the employee is capable of resuming work, the Vice Chancellor may elect to proceed with termination of employment on the grounds of ill-health without the need to comply with the written notice requirements specified in paragraph 4.

Notice Periods

7. If the medical examination reveals that the employee is unable to perform their duties and is unlikely to resume within a reasonable period, being not less than 12 months, the Vice Chancellor may terminate the employment of the employee on the grounds of ill-health with four weeks notice.

8. In addition to this notice, an employee who is over 45 years when notice is given and has completed two years continuous service with the University is entitled to an additional week's notice.

9. In cases where an employee is to be terminated on the grounds of ill health, the employee will not be required to work the notice period.

10. Any payments in lieu of notice are calculated on the rate of pay an employee would have received for ordinary time they would have worked during the notice period had their employment not been terminated.

Termination Payments

11. Employees, other than casual employees, are entitled to be paid their substantive salary (plus any allowances) up to and including their last day of employment, except for periods of unpaid leave taken prior to the date of termination.

12. Termination payments will be paid at the rate of the employee's substantive salary at their last day of service. However, where employees have been receiving salary allowances (excluding overtime and allowances such as first aid, shift penalties and allowances in lieu of shift penalties) for 12 months or more immediately prior to cessation, termination payments will be paid at the rate of the substantive salary plus the salary allowance. Employees, other than casual employees, are eligible for the following payments:

  • Annual leave - accrued annual leave up to a maximum of eight weeks.
  • Annual leave loading - a pro-rata annual leave loading, calculated on the basis of working days of service from the preceding 1st January (or commencement date, which ever is the later) to the date of cessation.
  • Long service leave (LSL) - accrued LSL.

Adjustment of Salary following Termination

13. Employees who were employed after the date of effect of a salary increase but who had left the service of the University prior to the increase being ratified must request payment of the increase by writing to the Payroll Office.

Return of University Property

14. Employees are required to return all University property (eg. keys, staff card, charge cards, store items tools and equipment) in their possession prior to their cessation. Any outstanding library items must also be returned prior to their cessation.

Review Process

15. Within ten working days of receiving the medical report referred to in paragraph 4, the employee concerned, or their representative, may request that the medical report be referred to a panel for review.

16. The review panel will consist of three medical practitioners:

  • One appointed by the University;
  • One appointed by the employee or, where the employee chooses, by the employee's representative; and
  • one appointed by the President of the New South Wales State Branch of the Australian Medical Association.

17. The panel must not include the practitioner who made the initial report.

18. The University will not terminate the employee's contract before the panel reports to the Vice Chancellor.

19. As far as possible, the medical practitioner making the final assessment and the panel reviewing the assessment will apply the same standards that would be used by the employee's superannuation scheme in granting a disablement pension or other similar benefit.

20. Where an employee refuses to undergo a medical examination within three months of receiving written advice to do so, the University may reasonably conclude that the employee is unable to perform their duties and is unlikely to be able to resume them in 12 months and may terminate employment in accordance with the notice periods specified in paragraph 7.

21. An employee's refusal to undergo a medical examination will not be regarded as misconduct and will not lead to any greater penalty or loss of entitlements than would have resulted from an adverse medical report.

Updated: 01 November 2012