Redundancy

Date last modified: 22/08/12

Introduction

1. The following redundancy provisions apply where an employee's employment is governed by the University's current Enterprise Agreement. Provisions for employees governed by other industrial instruments may differ.

2. These redundancy provisions do not apply to casual employees, apprentices or fixed-term employees.

3. The University is committed to averting or minimising redundancies, however, should circumstances warrant a reduction to the University's staffing profile, the following measures will be considered in the first instance:

Staffing levels may be reduced through natural attrition and/or limiting external recruitment action;
Redeployment and retraining;
Application of job redesign;
Utilisation of leave entitlements;
Voluntary conversion to part-time work.
Offering voluntary redundancy or pre-retirement contracts to any employee or category of employees, and/or call for expressions of interest therein.

Definitions

4. The following definitions apply:

'Redundancy' is defined as a situation where an employee is identified as surplus to the needs of the University as a result of the termination of the function formerly performed by the employee, as a consequence of economic, technological or structural change, such as:

Financial exigency within an organisational unit or Cost Centre;
A decrease in student demand, enrolments in any academic course or subject, combination or mix of courses or subjects conducted on one or more campuses;
A decision to cease offering or vary the academic content of any course, subject, combination or mix of courses or subjects conducted on one or more campuses or to cease support of a research area on any campus;
Changes in work methods arising from the introduction of technological development;
A decrease in student demand or enrolments impacting upon workloads;
Restructuring and/or the rationalisation of organisational entities and operations, including outsourcing; or
Legislative change.

'Redeployment period' refers to the eight weeks notice of termination and includes any award or statutory entitlement to notice of termination.

Delegations

5. Refer to HR Delegations for the delegations relating to redundancies.

Notice of Termination and Redeployment

6. Prior to implementation of a decision relating to redundancy, the Vice Chancellor will consider whether:

A genuine decision was taken by the University;
Fair and objective criteria were used; and
Genuine and adequate consultation was entered into and adequate consideration was given to measures to avert or mitigate the adverse effects of the termination.

7. Where an employee's position has been made redundant, the University will inform the employee in writing that their employment will be terminated and give them eight weeks notice (the redeployment period) of their last day of employment. The written notification will give the reason/s for the termination and provide a copy of the Vice Chancellor's consideration (see paragraph 6).

8. The redeployment period of eight weeks commences from the date of notification of the redundancy. The employee may extend the period for an additional period of up to 12 weeks making the maximum period of redeployment 20 weeks.

9. As part of the notice of termination, or as an attachment to the notice, the employee concerned will be provided with:

An estimate of their entitlements to payment for Long Service Leave (LSL), annual leave and leave loading in the event the employee is made redundant;
An estimate of the redundancy or severance payment entitlements that the employee would be entitled to if redeployment is not feasible;
Advice concerning the process and likelihood of redeployment and the conditions attached to the redeployment; and
A copy of the redundancy clause from the University's Enterprise Agreement.

10. The University may formally offer to redeploy an employee into any reasonable position or location during, or at the end of, the agreed period of redeployment:

Where an employee declines an offer of redeployment at the same or lower substantive level, the employee will be terminated as if they had been made involuntarily redundant in accordance these provisions.
Where an employee accepts an offer of redeployment at a lower substantive classification, their salary will be maintained at the higher level for six months from the date of redeployment before reverting to the top increment step of the lower classification.
Where an employee accepts an offer of redeployment, no redundancy or severance benefits will be paid.
The University may withdraw an offer of redeployment where an employee has failed to provide written notice of acceptance within two weeks of receipt of the redeployment offer.
Where there is mutual agreement, an employee may be redeployed into a position on a trial basis not exceeding six months in duration. At the end of the six month period, subject to mutual agreement, the employee will be redeployed to the relevant position. An employee not redeployed to the position at the end of the trial period will be terminated as if they had been made involuntarily redundant.
During the redeployment period the University will provide priority access to the University's identified learning development programs.

Assistance during the Redeployment Period

11. An employee will be entitled to the following assistance during the redeployment period:

One day per week without loss of pay during the notice period for the purposes of attending to financial affairs, job interviews or other job search activities;
On the provision of documentary evidence as to the attendance at job interviews or other job search activities requiring absence in excess of one day in a given week, the number of days considered reasonable by that employee's supervisor in accordance with the circumstances;
Outplacement support as arranged by HR Services.

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Redundancy Payments

Voluntary Redundancy

12. Where an employee elects to take immediate early separation during the initial eight week redeployment period, the following redundancy payments will apply:

A redundancy payment equivalent to 20 weeks salary; plus
A further redundancy payment, calculated to the nearest completed month, of three weeks salary for each year of the first ten years of continuous service with the University and two weeks salary for each year of continuous service beyond ten years; plus
Where an employee has reached 45 years of age and has continuous service of more than one year, an additional payment of four weeks salary.
Where the employee ceases before the end of the eight week redeployment period, the monetary value of the unexpired portion of the redeployment period will be paid.
Where an employee has less than 12 months service at the date of their termination the maximum redundancy payment will be 20 weeks.
The total redundancy payment will not exceed the equivalent of 68 weeks salary, exclusive of the redeployment period.

Involuntary Redundancy

13. If, at the end of the redeployment period, the University determines that the redeployment of an employee is not feasible, and their employment is terminated, the following redundancy payments apply:

A redundancy payment equivalent to 12 weeks salary; plus
A further redundancy payment, calculated to the nearest completed month, of three weeks salary for each year of the first 10 years of continuous service with the University and two weeks salary for each year of continuous service beyond 10 years; plus
Where an employee has reached 45 years of age and has continuous service of more than one year, an additional payment of four weeks salary.
Where an employee has less than 12 months service at the date of their termination the maximum redundancy payment will be 20 weeks.
The total redundancy payment will not exceed the equivalent of 68 weeks salary, exclusive of the redeployment period.

Taxation of Redundancy Payments

14. A bona fide redundancy severance payment is defined as an eligible termination payment and is subject to a concessional rate of taxation in accordance with taxation legislation as it applies at the time of the redundancy. Employees are encouraged to seek independent financial advice on the impact of taxation legislation and rulings on their redundancy and final payments.

Other Termination Payments

15. In addition to the redundancy payments made under either paragraph 15 or 16, an employee will also be entitled to 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 termination.
Long service leave (LSL) - accrued LSL.

Rate of Payment

16. Redundancy and termination payments will be calculated at the employee's ordinary rate of pay. Any additional allowances received over and above the employee's ordinary rate of pay will not apply.

17. Where an employee has accepted a temporary variation to their substantive appointment and retains a right of return to the terms of their substantive appointment, the salary of their substantive appointment will be used to calculate any redundancy and termination payments.

Return of University Property

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

Updated: 01 November 2012

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