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Agency Support Division - www.psc.wa.gov.au
Foreword
The Redeployment and Redundancy Policy Manual is issued by the Agency Support Division of the Public Sector Commission to assist public sector agencies in managing structural reform initiatives.
The Agency Support Division is responsible for the overall management of the Government’s redeployment and redundancy program. The Redeployment and Redundancy Policy Manual, and other supporting documentation, are designed to assist and guide agencies in the planning and implementation of major structural change.
The Redeployment and Redundancy Policy Manual ensures that consistent and accurate information is provided to managers and employees alike. It provides contemporary information on organisational change management principles and practices and the legislation, policies, processes and available support services relating to redeployment and redundancy activity.
The current policy manual can be accessed online at the Public Sector Commission website.
Contact should be made with the Agency Support Division, for all enquiries in relation
to this Manual. Please telephone 9219 6202 or 9219 6238.
M C Wauchope
PUBLIC SECTOR COMMISSIONER
Page 2
Contents
1. Organisational change management principles, guidelines and resources ...................... 5
1.1 Organisational Change Guidelines & Organisation Principles ......................................... 5
1.2 Consultation when Introducing Change ........................................................................... 5
1.3 Consultation regarding Redundancy. ............................................................................... 6
1.4 Notice of Redundancy ...................................................................................................... 6
1.5 The Individual and Redeployment .................................................................................... 7
1.6 Stages of Change ............................................................................................................. 8
1.7 Employees Role in Coping with Change .......................................................................... 9
1.8 Managing Change to Achieve Your Goals ..................................................................... 10
1.9 Resources and Contacts ................................................................................................ 11
2. Legislation, Awards, Orders, Standards and Circulars ...................................................... 12
2.1 Public Sector Management Act 1994 Part 6. ........................................................................ 12
2.2 Public Sector Management (Redeployment and Redundancy) Regulations 1994. ......... 12
2.3 Western Australian Government/Liquor, Hospitality and Miscellaneous Union
Redeployment, Retraining and Redundancy Certified Agreement 2004. ......................... 12
2.4 Public Sector Standards in Human Resource Management .............................................. 13
2.5 Termination, Change and Redundancy General Order ...................................................... 13
2.6 Relevant Circulars .................................................................................................................. 13
3. Redeployment and redundancy policy position, roles and responsibilities .................... 14
3.1 Redeployment and Redundancy Policy Position ................................................................ 14
3.2 Redeployment Approaches ................................................................................................... 14
3.3 Recruitment Advertising Management System (RAMS) ..................................................... 14
3.4 Role and Responsibilities of the Agency Support Division of the Public Sector
Commission ............................................................................................................................ 15
3.5 Role and Responsibilities of Agencies and SSCs .............................................................. 16
3.6 Role and Responsibilities of Employees ............................................................................. 17
4. Redeployment management .................................................................................................. 18
4.1 Government Position Statement ........................................................................................... 18
4.2 Key Redeployment Management Processes ....................................................................... 18
4.3 Redeployment Flowchart ....................................................................................................... 19
4.4 Pre-Registration Process ....................................................................................................... 20
4.4.1 Position Abolished ....................................................................................................... 20
4.4.2 Priority for Transfer to a Position in Home Department .............................................. 20
4.4.3 Interview with Agency/SSC Case Manager ................................................................ 20
4.4.4 Support Services ......................................................................................................... 20
Agency Support Division - www.psc.wa.gov.au
4.4.5 Voluntary Severance ................................................................................................... 20
4.4.6 Interim Work Placement .............................................................................................. 20
4.5 Registration as a Registered Employee ............................................................................... 20
4.5.1 RAMS .......................................................................................................................... 20
4.5.2 Performance and Suitability Assessment .................................................................... 21
4.5.3 Redeployment Acceptance ......................................................................................... 21
4.6 Identification and Referral to Suitable Job Opportunities .................................................. 21
4.6.1 Access to Job Placement Opportunities ..................................................................... 21
4.6.2 Appropriate Matching .................................................................................................. 21
4.6.3 Redeployee Responsibilities ....................................................................................... 21
4.6.4 Referral Actions ........................................................................................................... 22
4.6.5 Competitive Approaches ............................................................................................. 22
4.7 Suitability Assessment .......................................................................................................... 22
4.7.1 Interview Held Between Advertising Agency and Redeployee ................................... 22
4.7.2 Assessment Criteria .................................................................................................... 22
4.7.3 Interview Style ............................................................................................................. 22
4.7.4 Uncertainties on Redeployees Suitability .................................................................... 22
4.7.5 Outcome Report .......................................................................................................... 23
4.7.6 Formal Offer when Suitability Confirmed .................................................................... 23
4.7.7 Employment Type when Suitability Confirmed ............................................................ 23
4.7.8 Process when Non-Suitability Confirmed .................................................................... 24
4.7.9 ASD Redeployment Review Panel Process ................................................................ 24
4.8 Significant Redeployment Policy Applications ................................................................... 24
4.8.1 Suitable Employment and the Consequence of Refusing Suitable Employment ....... 25
4.8.2 Acceptance of Fixed Term Contracts by Registered Employees ................................ 25
4.8.3 Registration of Surplus Employee ............................................................................... 25
4.8.4 Classification Maintenance .......................................................................................... 27
4.8.5 Pay Maintenance ......................................................................................................... 27
4.8.6 Leave Entitlements ...................................................................................................... 28
4.8.7 Relocation Entitlements ............................................................................................... 29
4.8.8 Retraining .................................................................................................................... 29
4.8.9 Trial Placements .......................................................................................................... 30
4.8.10 Application of 80 – 110% Provisions ....................................................................... 31
4.8.11 Process for Filling Reclassified Positions ............................................................... 33
4.8.12 Exemption to Refer Vacancies ................................................................................ 33
Page 4
4.8.13 Pool Recruitment ..................................................................................................... 34
4.8.14 Resubmission of Cleared, Non Advertised Vacancies ........................................... 35
4.8.15 SES Officers ............................................................................................................ 35
4.8.16 Vacancy defined ...................................................................................................... 35
5. Voluntary severance ............................................................................................................... 36
5.1 Legislative Framework ........................................................................................................... 36
5.2 Overview of Severance Policy ............................................................................................... 36
5.3 Voluntary Severance Approval Procedures ........................................................................ 37
5.4 Standard Voluntary Severance Payment ............................................................................. 38
5.5 Voluntary Severance - Rate of Pay Applicable when Higher Duties Involved ................. 38
5.6 Voluntary Severance - Substituted Severance Arrangements .......................................... 38
5.7 Payment in Lieu of Notice of Redundancy........................................................................... 39
5.8 Voluntary Severance Offer .................................................................................................... 43
5.9 Letter of Severance ................................................................................................................ 43
5.10 Conditions of Re-Employment .............................................................................................. 43
5.11 Severance Payment Refund Calculation .............................................................................. 44
5.12 Rates of Pay for Part Time Service ....................................................................................... 45
5.13 Taxation and Superannuation Implications ......................................................................... 46
5.14 Notification to Centrelink ....................................................................................................... 47
6. Career transition services ..................................................................................................... 48
6.1 Accessing the Career Transition Courses ........................................................................... 48
6.2 The Need for Proactivity ........................................................................................................ 48
6.3 Outplacement Services – Common Use Contract ............................................................... 49
7. Presentation material and fact sheets ......................................................... 50
7.1 Redeployment and Redundancy Fact Sheets ..................................................................... 50
7.2 Redeployment and Redundancy Presentation Material ..................................................... 50
Agency Support Division - www.psc.wa.gov.au
1. Organisational change management principles, guidelines and resources
1.1 Organisational Change Guidelines & Organisation Principles
“A Guide to Organisational Change Management” is available to assist
agencies in managing structural change within their portfolios. The guidelines
complement the advisory and consultancy service offered by the Agency
Support Division. They include a set of reorganisation principles that underpin
change management processes to assist and guide public sector employers in
the implementation of major structural changes.
1.2 Consultation when Introducing Change
A Termination, Change and Redundancy General Order was issued by the
Western Australian Industrial Relations Commission in June 2005. This Order
requires employers to notify and consult with employees when decisions are
made to introduce change.
At the time employers decide to introduce changes in the workplace that are
likely to have significant effects on employees, they are required to notify all
affected employees, and where requested, the union nominated by the
employee.
As soon as practicable after making a decision to introduce change, employers
are also required to consult with and provide in writing to the affected
employees, and where nominated their union, all relevant information about the
changes including:
the nature of the changes being introduced;
the expected effects of the changes on employees;
the timing when, or period over which, the changes will occur; and
the ways to avoid or minimise the effects of the changes on employees.
However, employers are not required to disclose any confidential information
that the employer considers would be contrary to the interests of the
organisation to disclose.
Page 6
1.3 Consultation regarding Redundancy.
Regulation 4AA of the Public Sector Management (Redeployment and
Redundancy) Regulations 1994 requires public sector employers to notify and
consult with their employees regarding redundancies.
As soon as is practicable after the employer determines that an employee’s
position is to be abolished and the employee may become surplus to the
organisation’s requirements, the employer is required to consult with and
provide in writing to all affected employees, and where requested the union
nominated by the employee, all relevant information about the determination
including:
the reasons why the position is to be abolished and why the employee
may become surplus to the organisation’s requirements;
measures that could be taken to avoid the employee becoming surplus
to requirements;
the period within which the employee may become surplus; and
the number and employment types of other employees affected.
However, employers are not required to disclose any confidential information
that the employer considers would be contrary to the interests of the
organisation to disclose.
1.4 Notice of Redundancy
Regulation 4A of the Public Sector Management (Redeployment and
Redundancy) Regulations 1994 requires public sector employers to provide
employees with at least 12 weeks written notice of redundancy, where the
employee’s position is to be abolished and where the employee will become
surplus to requirements. The written notice of redundancy must confirm the
following:
their office, post or position is to be abolished; and
they will become surplus to agency requirements.
In the absence of providing the above notice, and where the employee receives
and accepts an offer of voluntary severance, a payment in lieu of notice
applies. Refer 5.7.
Agency Support Division - www.psc.wa.gov.au
1.5 The Individual and Redeployment
Improvements to service delivery and structural reform continue to impact on
the size and shape of the public sector. While there is a commitment to “no loss
of employment”, the roles undertaken by public sector employees are likely to
change through workplace reform initiatives. Many employees will have to face
the reality of making significant career decisions and adjustments.
People involved in the management of staff affected by organisational change
need to be aware that coping with change means different things to different
people. During the change process employees will experience a broad range of
feelings from anger and fear to enthusiasm and excitement at the new
prospects change offers.
Assisting employees through this period of uncertainty is a very important part
of managerial responsibilities.
The role of case managers or other people involved at various levels of
intervention with redeployment can be extremely demanding, both in terms of
providing practical help and resources, and in dealing with the emotional issues
that arise with job displacement.
It has been said that often the emotional response to employment displacement
is similar to the feelings experienced during the grieving process.
At first people will deny it’s happening. They will shut out reality and isolate
themselves. Then will come anger. Next they will try to bargain. Then finally
comes acceptance and hope for the changed future and choices that lie
ahead.
The emotional stages people often go through in coping with change are shown
diagrammatically on the following page.
Page 8
1.6 Stages of Change
People involved in organisational change tend to go through a series of stages.
These are set out below. The typical signs of each stage are described as well
as actions an individual can take to improve their capacity to cope.
ADAPTION
Signs
Focus on survival, low risk taking and creativity.
Uncertainty as to how to proceed, willingness to learn.
Passive acceptance, begin to make changes in the
work place.
Opportunity,
Growth and
New
Directions
DENIAL
Signs
Refusal to believe the change is
taking place. Confusion, apathy,
sense of loss, nostalgia for "the
way it was". Changes seen as
having no value. Low morale.
RESISTANCE
Signs
Depression, anxiety,
frustration, anger, blaming,
conflict. Negative attitude,
refusal to cooperate, direct
opposition.
INVOLVEMENT
Signs
Openness and commitment.
Conflict between
organisational and personal
goals resolved. Clear about
future, takes initiative.
Changes seen as a challenge
and opportunity for
improvement.
Agency Support Division - www.psc.wa.gov.au
1.7 Employees Role in Coping with Change
Employees should be encouraged to take some time to think about where they
are now. The following actions will focus individuals on what they can do to
move forward.
Possible Action - DENIAL
Seek accurate information find out what to expect. Consider implications,
discuss and confront irrational fears and doubts. Actively examine situation
for positive aspects.
Possible Action - RESISTANCE
Express feelings and recognise both good and bad things of past. Attempt
to understand the rationale behind changes. Seek involvement/input into
decisions.
Possible Action - ADAPTION
Confront feeling of powerlessness and seek support and advice. Clarify new
roles and resolve conflicts. Set short term, achievable goals. Measure
progress and reward self.
Possible Action - INVOLVEMENT
Accept the reality and use initiative and take informed risks. Assess own
strengths and weaknesses. Develop personal and other resources. Set
long-term goals. Measure and celebrate success.
A handout similar to the following could be provided to employees to assist
them in taking positive steps to deal with change management.
Page 10
1.8 Managing Change to Achieve Your Goals
Possible loss of job Financial commitments Dissatisfaction with job Other considerations.
Continued employment Part time work Self employment Retirement Financial pay outs Abilities aptitude Self esteem.
Qualifications Experience Transferable skills Family support Retraining.
Knowledge of job market Job search skills Appropriate job applications
skills Trial job placements.
= Achievement of
personal goals
A detailed action plan with clear first steps
+
Personal and other resources
for change
+
A clear idea of what you would like to achieve
+
Pressure from the situation for
change
+
Agency Support Division - www.psc.wa.gov.au
1.9 Resources and Contacts
Agency Support Division – Telephone 9219 6200
The Agency Support Division is committed to assisting public sector agencies
in managing reform processes and is able to assist through the provision of
expert advice on all matters relating to this area.
The Agency Support Division is located on the 23rd floor, Governor Stirling
Tower, 197 St Georges Terrace Perth and is available to support public sector
organisations in achieving their restructuring goals.
Early involvement and consultation with the Workforce Management Branch
has proven to be beneficial in facilitating staff reductions, contracting and
restructuring activities within agencies both from a management and employee
perspective.
Agency Support staff are available to provide support and advice on all aspects
of the Government's redeployment and redundancy legislation, policy and
procedures as well as the career transition services available to support
individuals.
External
Assistance in managing surplus staff can also be obtained from private sector
outplacement providers. The Department of Treasury and Finance manages a
common use contract for the provision of Human Resource Services (CUA
39104) which includes a list of accredited outplacement providers.
Page 12
2. Legislation, Awards, Orders, Standards and Circulars
The Western Australian Government redeployment and redundancy system is
covered industrially by the following legislation:
2.1 Public Sector Management Act 1994 Part 6.
http://www.slp.wa.gov.au/legislation/statutes.nsf/main_mrtitle_771_homepage.html
2.2 Public Sector Management (Redeployment and Redundancy)
Regulations 1994.
http://www.slp.wa.gov.au/legislation/statutes.nsf/main_mrtitle_1960_homepage.html
The above legislation applies to all employees covered by the Public Sector
Management Act 1994, except for those excluded under the provisions of
Regulation 4 (1), which includes employees who are employed on a contract of
employment that has a fixed term and who are not permanent officers.
Employees from entities listed in Schedule 1 of the Public Sector Management
Act 1994, are ineligible for redeployment/ voluntary severance under these
Regulations.
This legislation does not apply to a relatively small group of employees covered
by the Public Sector Management Act 1994, for whom redeployment and
redundancy provisions are included in federal awards or industrial agreements.
One of the more significant federal awards covers Government employees who
are eligible to be covered industrially by the Liquor, Hospitality and
Miscellaneous Union (LHMU). This Agreement is often referred to as the “RRR”
Agreement but is correctly titled:
2.3 Western Australian Government/Liquor, Hospitality and
Miscellaneous Union Redeployment, Retraining and
Redundancy Certified Agreement 2004.
The intent of the above Agreement was to reinstate, to eligible State
Government employees, the provisions and benefits previously provided by
what was known as “the General Order”. In the main the General Order was
superseded by the Public Sector Management Act 1994 and accompanying
Regulations, on the proclamation of this legislation in October 1994.
Agency Support Division - www.psc.wa.gov.au
2.4 Public Sector Standards in Human Resource Management
The public sector Redeployment Standard places certain requirements and
expectations on employers in the way they treat and manage surplus staff.
Although the principles are relevant, once a surplus employee has been
registered for redeployment the Redeployment Standard does not apply.
The public sector Termination Standard also places requirements on employers
for the process used to reach cessation of employment decisions. Both of these
standards are available on the Public Sector Commission website.
2.5 Termination, Change and Redundancy General Order
In June 2005 the Western Australian Industrial Relations Commission issued a
Termination, Change and Redundancy General Order which provides
entitlements to all employees dismissed other than for reasons of misconduct.
This Order took effect from 1 August 2005 and Cabinet endorsed the flow on of
any superior provisions to public sector employees.
Amongst other things this Order places:
obligations on employers to consult with employees (and when nominated
their Union) on decisions to introduce significant change and regarding
redundancies. Refer 1.3.
obligations on employers to notify Centrelink of redundancies. Refer 5.14.
A copy of this order can be found at:
http://www.wairc.wa.gov.au/index.cfm?objectId=C2594CB4-C5C5-4436-
0C73AFBC119F2FC4 (Search under General Orders).
2.6 Relevant Circulars
Government circulars that have relevance to redeployment and redundancy
matters, are available on the Public Sector Commission website and also the
Department of Commerce website:
PSC Circular 2009-28
- Redeployment And Voluntary Severance Policy
Circular to departments and authorities no. 7 of 1992
- Workers' Compensation claims - effect on employees seeking voluntary
severance.
Circular to departments and authorities no.19 of 1986
- policy on subsidised housing for redeployees.
Page 14
3. Redeployment and redundancy policy position, roles and responsibilities
3.1 Redeployment and Redundancy Policy Position
Government policies continue to embrace the concept of security in
employment. While jobs over time may cease to exist or be significantly altered,
redeployment, retraining, and voluntary severance strategies remain as the
preferred approaches in the management of permanent employees displaced
by organisational change.
3.2 Redeployment Approaches
Cabinet endorsed processes assist the matching of surplus employees to
vacant positions, and maintain the integrity of the redeployment system. These
approaches:
require public sector employers to ensure that all future surplus employees
are both employable and job ready prior to being registered for
redeployment. Performance assessments are required to be provided at the
time of registration and only those employees with positive assessments will
be registered;
involve ongoing reviews being undertaken by the Agency Support Division
of all registered redeployees to determine their redeployment prospects.
Redeployees assessed as having insufficient skills or employment
prospects will be placed internally within their employing department; and
employ a number of interventionist strategies to accommodate registered
employees including the ability to apply regulatory powers to direct public
sector employers to make employment offers to surplus employees and to
direct surplus employees to accept offers of suitable employment.
3.3 Recruitment Advertising Management System (RAMS)
Pivotal to the operation of the current redeployment model is RAMS. This is an
internet database system designed to streamline administrative processes and
facilitate the case management of surplus employees.
The RAMS system includes online User Manuals and Tutorials covering system
applications and processes for redeployment and voluntary severance.
Agency Support Division - www.psc.wa.gov.au
3.4 Role and Responsibilities of the Agency Support Division of the
Public Sector Commission
The Agency Support Division of the Public Sector Commission has delegated
responsibilities under the redeployment and redundancy provisions of the
Public Sector Management Act 1994, for the efficient and effective
management of the Government’s redeployment framework.
The Agency Support Division provides a lead role in the management of
redeployment. It oversees the redeployment process and applies the
legislation, regulations and policies sensitively and with due regard for the
Government’s reform agenda, agency operational requirements and individual
circumstances. Specifically the Agency Support Division will:
maintain an equitable and effective whole of Government framework to
enable agencies and/or shared corporate service centres ( SSCs ) to
achieve redeployment outcomes and effectively manage their surplus staff;
develop and implement redeployment policies and procedures;
review and interpret legislation and regulations;
provide strategic advice and assistance to Government and agencies/
SSCs;
provide electronic access to job vacancies, registration of redeployees and
voluntary severance through the RAMS system;
provide mediation services where agencies/SSC’s are unable to reach
agreement on the suitability of a registered redeployee;
maintain a central redeployment and redundancy database for reporting
purposes, and
provide statistical and other reporting on redeployment and redundancy
management activities.
The Agency Support Division may provide centralised case management
services to agencies/SSCs, and their registered redeployees which result from
a significant Government reform initiative, such as the Shared Corporate
Services Initiative. Case management services will include:
assisting redeployees to identify alternative job placement opportunities;
managing the job matching and referral process for redeployees;
assessing validity of job placement referral reports and negotiating
placement outcomes;
assessing and recommending provision of career transition training,
counselling, and other support services to redeployees employing authority.
Page 16
providing information on relevant legislation and policies, redeployment
options.
Outside of significant Government reform initiatives, public sector
agencies/SSC’s will retain responsibility for the case management of their
employees. (see 3.5)
3.5 Role and Responsibilities of Agencies and SSCs
Government policies require employing agencies to retain responsibility and
accountability for the management of any employee affected by changing work
situations.
As a first priority placement opportunities within the organisation should be
actively sought for any surplus employee. Only where this is not possible,
should employees be registered for external redeployment.
Agencies/SSCs are responsible for providing surplus employees with suitable
interim work arrangements and providing professional support pending their
redeployment.
Registered employees must be treated with empathy and provided every
assistance to ensure they are fully informed of their redeployment, retraining
and redundancy rights, entitlements and obligations.
The need for agencies/SSC’s to provide career transitional support, including
ongoing professional development opportunities, for registered redeployees
located in regional areas is of particular importance.
Agencies/SSC’s have a legal obligation to adhere to legislative and policy
requirements and any decisions made by the Agency Support Division.
There is a requirement on agencies/SSC’s to post any vacancy greater than 6
months (total) duration on RAMS and ensure that any redeployee referred is
given every consideration and opportunity to be redeployed into the position.
The “6 months” includes instances of lesser periods which, in total, exceed 6
months (see also 4.8.12).
For general organisational restructuring activity, agencies/SSC’s are required to
provide case management and support services for their surplus employees
including:
initialising registration of employees for redeployment;
assisting employees to identify alternative job placement opportunities;
managing the job matching and referral process for their redeployees;
providing employees with access to information on career transition options
and entitlements;
Agency Support Division - www.psc.wa.gov.au
providing employees with access to appropriate counselling and other
support services;
identifying and providing suitable interim work throughout the change
process;
payment of salaries/wages until redeployed;
supporting appropriate retraining and development opportunities;
preparing business case submissions for voluntary severance.
SSC’s will provide initial mediation services where agencies cannot reach
agreement on the suitability of redeployees.
3.6 Role and Responsibilities of Employees
Government policies require public sector employees to acknowledge and be
responsive in adapting to the need for continual improvements in service
delivery.
As services change to remain relevant, efficient, and effective, there will
inevitably be changes to associated work practices and service delivery that will
impact on the structure of existing jobs. Therefore employees need to be:
aware that continued improvements will result in changes to work practices
and existing employment arrangements;
flexible and responsive to changing work situations;
cooperative with services offered to assist their career transition efforts
including attendance at job readiness training and presenting positively and
professionally at job placement interviews;
willing to consider all available options including, internal transfer, trial work
placements, external redeployment, transition to private sector employment,
voluntary severance, and retraining; and
aware of their legal obligation to adhere to the requirements of the
legislation and any decisions made by the Agency Support Division.
Registered employees are required to take responsibility for their own career
management and actively pursue alternative employment opportunities. When
referred for positions, there is an expectation that registered employees will
prepare for the interview, familiarise themselves with the role and function of
the agency and present in a positive and professional manner.
Page 18
4. Redeployment management
4.1 Government Position Statement
In PSC Circular 2009-28 (available on the Public Sector Commission website),
the Premier confirmed that the effective management of surplus staff was a
priority of the Government.
Agencies have a number of strategies available to them to manage their
surplus staff including redeployment and voluntary severance. Redeployment
continues as the priority application for the management of surplus permanent
public sector employees. Voluntary severance is only offered in circumstances
when redeployment options have been explored and a good business case
justifies its application.
Current redeployment approaches involve the application of interventionist
strategies and are subject to close scrutiny to maintain the integrity of
Government’s redeployment framework and the achievement of required
outcomes.
4.2 Key Redeployment Management Processes
A diagrammatic illustration of the redeployment process together with a
summary of the key redeployment process elements are provided as follows.
Agency Support Division - www.psc.wa.gov.au
4.3 Redeployment Flowchart
Position abolished or surplus to agency requirement
Employee is unable to be transferred to another position in home agency
Agency/SSCs arranges interim work placement
Redeployee is externally registered for redeployment
Interview with case manager Identification of appropriate Career Transition Courses for retraining if required
Case manager and redeployee begin to identify suitable alternative job opportunities RAMS provides 3 days to place a “hold” on posted jobs, and 2 days to refer suitable redeployees
When a suitable job match is found, interview is held between advertising agency and the redeployee
Advertising agency assesses redeployee to be
unsuitable for position
Advertising agency assess redeployee to be
suitable for position
Feedback provided to case manager and redeployee within 14 days of referral
Not recommended for placement Recommended for placement
Accept non-suitability findings
Disagree with findings
Negotiate placement options
Review Panel Referral
Advertising agency employs redeployee in vacant position on permanent, temporary or
trial basis
Temporary / Trial placement ends
Permanently placed
Name removed from redeployment register
Resume Job Search
Registered employees are allowed special leave to attend interviews and career counselling. Where there is a cost involved in attending interviews, this will be paid for by the home agency.
Page 20
4.4 Pre-Registration Process
4.4.1 Position Abolished
This occurs when an individual’s job within an agency is abolished as a
result of organisational change. It is the position that is made redundant,
and not the person.
4.4.2 Priority for Transfer to a Position in Home Department
When a position is abolished, the agency should as a first priority
transfer the surplus officer internally into an alternative position. When
this is not possible, the occupant of the position is considered to be
surplus and external redeployment and redundancy management
options are considered.
4.4.3 Interview with Agency/SSC Case Manager
Surplus employees must be advised of their redeployment options, the
redeployment process, available support services and their roles and
responsibilities.
4.4.4 Support Services
As far as practicable and dependent on individual and agency needs,
support should be given to surplus employees in the form of personal,
financial and career transition advisory and support services.
4.4.5 Voluntary Severance
It is at this point a surplus employee may be offered voluntary severance
subject to necessary approvals. There are no obligations on the
employing agency to offer voluntary severance or, on any surplus
employee to accept voluntary severance when offered.
4.4.6 Interim Work Placement
Agencies continue to be responsible for the management of their surplus
employees and are responsible for providing employees with work and
ongoing support until redeployment outcomes are achieved.
4.5 Registration as a Registered Employee
4.5.1 RAMS
Agency/SSC case managers initiate the registration of surplus
employees for external redeployment by completing the registration
template on RAMS.
Agency Support Division - www.psc.wa.gov.au
4.5.2 Performance and Suitability Assessment
RAMS requires referring agencies to provide a statement of the reasons
that led to the individual becoming surplus, of efforts made to
accommodate the employee internally, together with performance and
employability assessments.
4.5.3 Redeployment Acceptance
All requests to register surplus employees for external redeployment
need to meet the eligibility requirements under Regulation 4 and
Regulation 11 of the Public Sector Management (Redeployment and
Redundancy) Regulations 1994.
The Agency Support Division will confirm the acceptance or non-
acceptance of the registration of surplus employees for external
redeployment.
4.6 Identification and Referral to Suitable Job Opportunities
4.6.1 Access to Job Placement Opportunities
RAMS provides case managers with daily access to public sector job
opportunities. Case managers have up to three (3) working days to
consider the suitability of their redeployees and place a “hold” on a
posted vacancy. From the end of the 3 day “hold” period case managers
have a further two (2) day period in which to refer any suitable
redeployees to a job.
Note: The Agency Support Division monitors the daily vacancy listing to
ensure that advertising agencies do not post positions that could provide
suitable placements for any of their registered employees.
4.6.2 Appropriate Matching
Case managers will only consider the referral of a redeployee when an
appropriate match exists between the redeployees employment
experience, skills, qualifications and level with the posted position.
4.6.3 Redeployee Responsibilities
Redeployees need to be aware that they should be actively seeking
suitable employment opportunities throughout their period of
redeployment.
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4.6.4 Referral Actions
Where it is identified that a redeployee is suited to a particular vacancy,
the case manager places a “Referral” on RAMS and submits the
redeployees résumé and a covering letter for the consideration of the
advertising agency.
4.6.5 Competitive Approaches
As more than one redeployee may be put forward for interview, it is
important redeployees ensure their interview skills are well developed
and that they approach interviews competitively.
4.7 Suitability Assessment
4.7.1 Interview Held Between Advertising Agency and Redeployee
To assess their suitability for placement in a position an interview is held
with representatives from the advertising agency. Interview processes
should focus on finding reasons for accepting redeployees as opposed
to reasons for their non-suitability.
4.7.2 Assessment Criteria
The assessment for suitability for placement in the position is to be
based solely upon the criterion “Can the person(s) fulfil the requirements
of the job within a reasonable period of time?” Essential selection criteria
are therefore not to be rigidly applied except where they are of a specific
nature that would normally preclude a right to practice.
4.7.3 Interview Style
The use of a formal selection interview is considered to be inappropriate
in these circumstances. A less formal interview should be structured
around the requirements of the job to elicit sufficient information for
assessing the redeployees suitability.
4.7.4 Uncertainties on Redeployees Suitability
Where uncertainty exists as to the ability of the redeployee to undertake
the requirements of the position within a reasonable period of time, it is
expected that the redeployee will be given the opportunity to “try out” in
the position on a retraining basis to enable a better assessment of their
claims for appointment.
Agency Support Division - www.psc.wa.gov.au
4.7.5 Outcome Report
A formal report on discussion outcomes should be returned to the
referring case manager within 14 days of the date on the referral letter.
The report will need to provide sufficiently detailed information to
demonstrate how the claims of the redeployee have been assessed in
relation to job requirements, along with a decision on suitability.
Redeployees will have access to those parts of the report that relate to
them.
4.7.6 Formal Offer when Suitability Confirmed
Where assessment outcomes confirm the suitability of a redeployee for
appointment, agencies are reminded of the provisions of Regulation 13
(1) of the Public Sector Management (Redeployment and Redundancy)
Regulations 1994 which require you to provide in writing, an offer of
employment to the employee concerned. The offer needs to set out the
terms and conditions (including pay details) subject to which the offer is
being made.
4.7.7 Employment Type when Suitability Confirmed
The advertising agency will employ the redeployee on a permanent,
temporary or trial basis depending on the nature of the position and the
redeployees relevant experience. Redeployees placed into trial
placements or, into temporary positions that render them unavailable for
consideration for placement in other positions, will be removed from the
active redeployment register.
At the expiry of the temporary or trial period, the agency may offer the
redeployee a position, or refer them back to their employing agency for
reinstatement on the active redeployee register. During trial placements
formal progress performance reports must be provided by the host
agency to the redeployees case manager. Also see 4.9.9
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4.7.8 Process when Non-Suitability Confirmed
When an interview report finds a redeployee to be unsuited to the
position, the case manager, after consultation with the redeployee, can
accept the report and update RAMS. In this event, the case manager will
resume the redeployment search and continue to identify suitable
vacancies in consultation with the redeployee.
Alternatively, the case manager may choose not to accept the report and
attempt to reach agreement on the suitability of the redeployee or
agreement on a trial placement.
Following exhaustive efforts and only where the parties cannot reach
agreement on the placement outcome, the matter may be referred to the
Agency Support Division Redeployment Review Panel administered by
the Public Sector Commission.
4.7.9 ASD Redeployment Review Panel Process
Documentation to be forwarded to the Review Panel would include a
copy of the interview report and details of placement negotiation efforts
and outcomes. The documentation is to be forwarded to the Senior
Policy Officer, Agency Support Division, Public Sector Commission, 23rd
Floor, 197 St Georges Terrace, Perth WA 6000.
The Panel will arrange to meet separately with both the applicant and
their case manager if required, and representative(s) from the
advertising agency to consider the merits of their submissions. The
Panel may recommend that an agency be directed to offer employment
to a redeployee.
4.8 Significant Redeployment Policy Applications
Below are key policy areas that impact on the management of
redeployment.
Agency Support Division - www.psc.wa.gov.au
4.8.1 Suitable Employment and the Consequence of Refusing Suitable Employment
Definitions on what represents suitable employment are given in Part 6
of the Public Sector Management Act 1994 and Regulation 3 of the
Public Sector Management (Redeployment and Redundancy)
Regulations 1994.
Registered employees are required under Regulation 13(1) of the Public
Sector Management (Redeployment and Redundancy) Regulations
1994, to be provided with employment offers in writing which set out the
terms and conditions of the offer. This is regardless of whether the
employment opportunity is in the home agency or in another
organisation.
Where a registered employee receives but refuses to accept an offer of
suitable employment or obstructs their redeployment to a suitable
employment opportunity, the Agency Support Division may, under
approved delegations, direct the employee to accept that offer.
Refusal to accept the offer at that stage may be considered a breach of
discipline under the Public Sector Management Act 1994 and any
employee dismissed under the Act, is not entitled to a severance
payment.
4.8.2 Acceptance of Fixed Term Contracts by Registered Employees
Unless the appointment is processed under secondment arrangements,
a registered employee accepting an offer of a fixed term appointment
made under the provisions of Section 64(1)(b) of the Public Sector
Management Act 1994, loses any right or entitlement associated with
their previous status as a permanent officer.
4.8.3 Registration of Surplus Employee
Under Regulation 11(1)(a) of the Public Sector Management
(Redeployment and Redundancy) Regulations 1994, public sector
employing authorities can apply to register an employee for
redeployment:
whose position has been abolished, or who is otherwise surplus to
the requirements of his/her department or organisation; and
who cannot be transferred within his or her department or
organisation.
Page 26
Registration is not automatic and is subject to approval by the Deputy
Commissioner, Agency Support Division, Public Sector Commission.
Discretionary powers to not register an employee for external
redeployment apply to the following circumstances.
Redeployment Availability
Registered employees need to be available to attend employment
interviews and to take up employment offers. Confirmation of the
employee’s availability to take up alternative work placements needs to
be provided by the employing authority.
Employability and Job Readiness
Requests to register employees who have negligible redeployment and
retraining prospects owing to highly specialist or insufficient skills and/or
work experience, are unlikely to be accepted.
Agencies seeking to register an employee for external redeployment
must not refer an employee with known substandard performance
problems. Redeployment should not be seen as a means to abrogate
the responsibility of management to monitor and address the
performance of staff.
Confirmation that no recurrent or current sub-standard or other
performance related issues exist, needs to be provided by the employing
authority for registration applications to be accepted.
Arrangements will be made to “de-register” an employee if clear
evidence of substandard performance is ascertained during the
redeployment process or during a trial or temporary placement with
another agency.
Requests to register employees for redeployment, who have incurred a
work or non-work injury and who are undergoing rehabilitation, will not
be accepted.
Being Otherwise Surplus to Requirements
The registration of an employee whose job has not been abolished but
who is otherwise surplus to requirements would only occur in exceptional
circumstances. The basic redeployment premise is that a person’s
position has ceased to exist.
It was never intended that these provisions would apply to enable a
surplus employee whose job remains, but who had incurred work/non
work injuries and requires rehabilitation, to be registered for
redeployment assistance. Nor should they be used to accommodate
requests for other general mobility requests.
Agency Support Division - www.psc.wa.gov.au
Employees who have been transferred to an “attached list” due either to
long term absences, or being otherwise non-operational will only be
registered in exceptional circumstances.
Applications to register employees whose positions remain but who are
unable to fulfil the requirements of the job they were employed to do,
because they have failed to maintain their capacity and/or level of
knowledge and skills required for the role, are unlikely to be accepted.
Likelihood for Internal Placement
Applications to register employees who have strong prospects for
securing an alternative placement within their own organisation based on
known attrition rates, are unlikely to be accepted. For example, a level 2
Personnel and Payroll officer from an organisation that has a large
personnel and payroll workforce would typically not be registered for
redeployment.
Willingness to cooperate with the redeployment process
Public sector employees need to acknowledge and accept responsibility
for their role in the redeployment process and be willing to actively
pursue alternative employment opportunities.
The registration of an employee who is not willing to accept their
responsibilities in this regard is unlikely to be accepted.
4.8.4 Classification Maintenance
Surplus employees, whether registered employees or not receive
classification maintenance while awaiting internal or external
redeployment. Classification maintenance offers the employee protection
of the substantive classification level, and maintains the rate of pay to
which the employee was entitled in respect to the abolished position.
4.8.5 Pay Maintenance
Regulation 18(4) of the Public Sector Management (Redeployment and
Redundancy) Regulations 1994 provides for pay maintenance
arrangements to apply for a period of 6 months to registered employees
who accept an offer of suitable employment which attracts a lesser rate
of pay to that received in their former position.
The pay maintenance period commences the day after the registered
employee begins employment in a new position. This is regardless of
whether the position is a permanent or fixed term contract position.
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However, if a registered employee begins employment in a job on a trial
arrangement under Regulation 14 of the Public Sector Management
(Redeployment and Redundancy) Regulations 1994 (retraining of
registered employees), pay maintenance provisions would commence
on the date the registered employee actually commences in the position
following completion of the successful trial.
When making employment offers to registered employees, all employing
authorities are required to set out the terms and conditions, including pay
rates in a formal offer. This would include pay maintenance
arrangements to ensure there is a clear understanding of the
arrangement entered into prior to accepting the offer.
In the case of broad banding personal classifications, the maintenance
of such classification also continues for a six-month period following the
acceptance by a registered employee of a suitable position.
For income maintenance purposes, Regulation 3 of the Public Sector
Management (Redeployment and Redundancy) Regulations 1994
defines pay as the award rate of pay and enterprise bargaining
allowances and allowances for being in charge of other employees.
Allowances that are always paid with the award rate of pay applicable to
the employee’s substantive classification, and which do not relate to
conditions such as the time, place and circumstances at or in which the
person is employed would also be included.
4.8.6 Leave Entitlements
Redeployment does not affect an employee’s accrued annual, long
service and sick leave entitlements. These are transferred to the new
employing authority as provided for under Regulation 18 of the Public
Sector Management (Redeployment and Redundancy) Regulations
1994. Additionally, Regulation 12 of those Regulations provides an
entitlement to reasonable leave without loss of pay for a registered
employee to attend:
employee interviews with other employing authorities and with
employers outside the public sector; and
career counselling of a kind approved by the employing authority.
Leave without pay should not be viewed as an entitlement, but is an
option for registered employees who wish to undertake full time study or
search for a job in the private sector. Approval for leave without pay
must be obtained from the employing authority and as a general rule, the
employee is de-registered for the duration of the leave.
Agency Support Division - www.psc.wa.gov.au
The period taken as leave without pay would not count for accrual of any
leave, payment of increment or for the purpose of calculating any
subsequent severance payment.
4.8.7 Relocation Entitlements
Registered employees who are required to relocate as a result of
accepting a new position, will be reimbursed by the new employing
authority all reasonable expenses incurred in moving household
belongings. (Unless other arrangements are negotiated between the
receiving and home agencies).
If an award or other written law, which applies to the employee, provides
for the payment of relocation expenses, reimbursement will be in
accordance with that award or written law.
4.8.8 Retraining
Retraining is an option for registered employees who have little or no
prospect of obtaining suitable alternative employment. It provides them
with sufficient transferable skills to enable them to obtain ongoing public
sector employment in the shortest time-frame possible.
The appropriateness of retraining will largely depend on an assessment
of the employee’s capacity to retrain, redeployment prospects and the
realistic chances of an actual job being found following completion of the
training.
All parties must agree to any retraining arrangement i.e. the registered
employee, the current employing authority and if applicable, the new
employing authority that employs the employee for retraining purposes.
Retraining generally takes the form of on the job training in an area
where employment prospects exist or are likely to exist in the near
future. Regulation 14 of the Public Sector Management (Redeployment
and Redundancy) Regulations 1994 provides broad coverage of
arrangements i.e.:
arrangements need to be agreed upon by all parties involved;
up to a maximum period of 6 months;
costs to be covered by the home agency;
does not impact on “pay maintenance” arrangements;
retraining placements can be either within or outside the public
sector;
Page 30
retraining placements can be internal or external to the home agency;
retraining may include undertaking a short term skill enhancement or
development course(s);
retraining is not an entitlement but is by negotiation; and
period of retraining is considered as service and as such all benefits
such as annual leave and long service leave will continue to accrue.
4.8.9 Trial Placements
Trial placements may be offered when doubt exists as to the suitability of
the registered employee in the position to which they have been
referred.
Trial placements are usually set between 3 to 6 months duration, with
the expectation that satisfactory performance during the trial will result in
either permanent appointment or appointment for an extended trial
period. Funding of the redeployees salary during the trial period is to be
negotiated by the home and receiving agency prior to the trial period
commencing.
Before a trial placement commences, the receiving agency should also
provide the redeployee with clearly defined performances targets and
expectations to be met during the placement. The redeployee and their
case manager should be provided with regular performance feedback
during the course of the trial to enable any concerns that may be raised,
to be addressed.
At the mid-point of the trial period, the receiving agency should provide
the home agency with verbal feedback or a brief formal report on the
progress of the placement. The case manager should discuss the
feedback or contents of the report with the registered redeployee. If the
placement was not progressing satisfactorily, the case manager should
suggest remedial or developmental actions where appropriate.
Agency Support Division - www.psc.wa.gov.au
One action may be to extend the trial period to enable any shortcomings
to be addressed. All parties must agree to any extensions to trial
placements. At the conclusion of the trial, a formal report, which provides
for one of the following outcomes should be prepared by the receiving
agency:
the registered employee is confirmed in the position on a permanent
basis;
a further trial period is negotiated; or
the placement is terminated and the registered employee returns to
the home agency.
As a general principle, and because of the premise that satisfactory
performance in a trial placement will result in a permanent placement,
the registered employee will be considered unavailable for other
redeployment opportunities during the course of the trial. Similarly, a
registered employee cannot reject a permanent job opportunity for the
sole reason that a trial period is required or requested.
Unless established as an approved retraining arrangement under
Regulation 14, the trial period will be included when calculating the 6-
month salary maintenance period referred to in Regulation 18(4) of the
Public Sector Management (Redeployment and Redundancy)
Regulations 1994.
4.8.10 Application of 80 – 110% Provisions
The Public Sector Management Act 1994 defines suitable office, post or
position or suitable employment as one:
which is suitable having regard to the respective responsibilities
attached to it and to the office, post or position or employment
occupied or held by the employee at the time when the relevant offer
is made and to the experience, qualifications and competence of the
employee;
which does not require the employee to change his or her place of
residence; and
which satisfies such other criteria as are prescribed.
Page 32
The Public Sector Management Act (Redeployment and Redundancy)
Regulations 1994 prescribe those other criteria as follows:
is the most suitable actually available; and
the maximum pay applicable to the office, post or position or
employment is (i) as close to that applicable to the former office post
or position or employment as is reasonably practicable; and (ii) in any
case, subject to Sub-Regulation (3) is not less than 80%, nor more
than 110%, of the maximum pay applicable to the range of
classification within which the office, post or position or employment
occupied by the employee.
The 80-110% provisions were intended to facilitate the movement of
employees across awards. While designed to achieve redeployment
outcomes these provisions were never intended to circumvent the
principles of merit selection. Nor were they designed to be applied
capriciously or oppressively to effect indiscriminate regressions and/or
promotions within an employee’s existing award.
80% - 110% Example
The following serves as an example only of the application of the 80% -
110% provisions.
Mr X is employed as a HSU Level 7 officer. This level carries a salary
range of $65,502 to $69,761 per annum. To determine the range of
salaries which may constitute potentially suitable employment, the
maximum of the range i.e. $69,761 is multiplied by 80% to give the
minimum acceptable salary and multiplied by 110% to give the maximum
acceptable salary, i.e. $69,761 x 80% = $55,809 and $69,761 x 110% =
$76,737.
Therefore alternative positions that carry a maximum salary of between
$55,809 and $76,737 may, if all other criteria are met, be considered to
be suitable positions.
Agency Support Division - www.psc.wa.gov.au
4.8.11 Process for Filling Reclassified Positions
Regulation 24(1) of the Public Sector Management (Redeployment and
Redundancy) Regulations 1994 requires all organisations to gain a
clearance to advertise all vacancies that are greater than 6 months
duration.
The decision to give the current occupant of the position the benefit of
any reclassification is a local matter for each agency.
However, once the agency seeks to advertise and fill the position then
the normal clearance process using RAMS applies. There are no
automatic clearances given in these circumstances, and the claims of
any registered employees referred for consideration should be treated in
the same manner as any other referral.
4.8.12 Exemption to Refer Vacancies
Under Regulation 24(2) of the Public Sector Management
(Redeployment and Redundancy) Regulations 1994 the Deputy
Commissioner, Agency Support Division, Public Sector Commission, has
delegated authority on behalf of the Minister for Public Sector
Management to exempt the referral of vacancies for redeployment
clearance. All requests for exemptions need to be formally submitted to
the Agency Support Division.
Exemptions may be granted for “one off” circumstances such as the
appointment of a trainee to an entry level position, or, for the short term
extension of an existing employment contract. In other instances
exemptions may be granted to exempt the referral of a particular type or
class of job on an “ongoing” basis, for example a Clinical Nurse.
Requests for “ongoing” exemptions are usually only considered where it
can be shown that the positions are highly specialised, are agency
specific, have no chance of an external redeployee ever being available
for placement and where delays to recruitment processes could
adversely affect the delivery of critical services.
Note: As a standard practice the Agency Support Division monitors the
daily listing of public sector vacancies posted in RAMS. Where it is
known that no suitable registered redeployees are available action is
taken to clear the vacancies for advertising. In most instances this
process provides for a faster vacancy clearance turnaround than what
Page 34
can be achieved through the formal submission and determination of
requests for exemption.
There is no requirement for agencies to seek clearance for short-term
vacancies of up to six months. However, redeployment clearance is
required for vacancies that have the possibility for an extension beyond
six months.
This exemption also does not apply to situations where a vacancy which
was initially identified as having a duration of less than 6 months,
subsequently exceeds 6 months in total (for example, a vacancy which is
filled on a temporary basis for two consecutive 6 month periods).
4.8.13 Pool Recruitment
Pool recruitment opportunities entered in RAMS receive an automatic
redeployment exemption as these advertisements do not involve the
immediate filling of an actual vacancy, as opposed to the gathering
together of a pool of suitable applicants for possible placement in future
positions.
Positions that involve the filling of actual position(s), with secondary
actions involving the possibility of suitable applicants being considered
for appointment to future vacancies do not represent a pool
advertisement for redeployment exemption purposes.
All subsequent vacancies that arise and which are to be filled from
applicants contained within a recruitment pool need to be submitted for
redeployment clearance. This requirement applies regardless of the
shortness of time that has elapsed between the posting of the pool
advert and the occurrence of the subsequent vacancy.
Subsequent vacancies need to be individually identified as either a
permanent or fixed term placement opportunity. They do not represent,
and should not be identified as, a “pool recruitment” opportunity because
of the intention to fill them from applicants received through an earlier
pool advertising process.
Pool opportunities advertised in RAMS are monitored for the possibility
of providing retraining placements for registered employees due to the
requirement that appointment pools should only be used where it can be
demonstrated that a large number of like vacancies may become
available. Subject to confirmation of suitability, an ongoing placement
would be expected in these circumstances.
Agency Support Division - www.psc.wa.gov.au
4.8.14 Resubmission of Cleared, Non Advertised Vacancies
A vacancy clearance notification is valid for 3 months (90 days) from the
date the vacancy status was changed in RAMS to “cleared for
advertising”. A further redeployment clearance will be required should
actions to advertise or fill the position not have commenced prior to the
expiration of that period.
4.8.15 SES Officers
An SES Officer who is employed on a fixed term contract and who is not
a permanent officer is ineligible to access redeployment and voluntary
severance under the Public Sector Management (Redeployment and
Redundancy) Regulations 1994.
SES Officers with a right of return entitlement under S58 of the Public
Sector Management Act 1994, can exercise that entitlement either at the
time of their SES contract being terminated under s56(3) of the Public
Sector Management Act 1994, or when the employee completes their
term of office and is not reappointed.
Upon exercising their right of return, the employee may be eligible to
access redeployment and/or voluntary severance at the classification
level applicable under their right of return arrangement.
4.8.16 Vacancy defined
For redeployment purposes, a vacancy is defined as all posts, offices or
positions, newly created, recently vacated or to be filled on a temporary
basis in excess of 6 months.
Page 36
5. Voluntary severance
5.1 Legislative Framework
Part 6 of the Public Sector Management Act 1994, and the associated Public
Sector Management (Redeployment and Redundancy) Regulations 1994
provide the legislative framework for the application of voluntary severance in
the Western Australian public sector.
The above Regulations apply to all WA public sector employees except for a
relatively small group for whom redundancy provisions are included in Federal
awards or industrial agreements.
5.2 Overview of Severance Policy
Below is a summary of the key policies associated with the application of
voluntary severance in the WA public sector:
Voluntary severance is not an entitlement and redeployment remains the
preferred option in managing surplus employees.
Successive Governments have chosen to use redeployment and voluntary
severance, as opposed to involuntary severance, as the preferred
approaches in the management of job redundancy.
Offers of voluntary severance may be made to any permanent employee
whose:
o position is, or is to be, abolished; and who
o is or is to be, surplus to the requirements of their organisation.
Offers of voluntary severance follow a process that initially considers the
internal and external redeployment prospects for surplus employees.
Legislation places requirements on public sector organisations offering
voluntary severance to meet certain approval conditions and reporting
requirements.
The standard severance payment for public sector employees is 3 weeks
pay for each year of completed service up to a maximum of 52 weeks.
Employees who have completed more than 1 but less than 2 years of
continuous service are entitled to a severance payment equal to 4 weeks’
pay.
The Regulations also make provision for up to 12 weeks payment in lieu of
notice of redundancy in circumstances where an employee is to become
surplus to requirements and where sufficient notice is not given.
Agency Support Division - www.psc.wa.gov.au
The Regulations place re-employment restrictions on any employee
accepting voluntary severance for a period of time that equates to the total
of the number of weeks of their severance and leave payments.
Public sector employees accepting voluntary severance are required to sign
a letter of severance Refer 5.9.
Employers are required to notify Centrelink of the names of employees who
accept voluntary severance.
Key severance policy applications are explained in more detail in the following
sections.
5.3 Voluntary Severance Approval Procedures
Under Section 93(6) of the Public Sector Management Act 1994, the Deputy
Commissioner, Agency Support Division, Public Sector Commission, has
delegated authority on behalf of the Minister for Public Sector Management for
all voluntary severance approvals. Prior to offers of voluntary severance being
made, approval is required from the Public Sector Commission for both internal
surplus employees and registered redeployees. This requirement also applies
to severance activity under substituted severance arrangements.
All voluntary severance requests must relate to genuine redundancy
circumstances that are associated with the employee’s job having been made
redundant.
In larger restructuring circumstances it may be useful for agencies to use a
voluntary severance “Expression of Interest” form to assist the process of
determining which staff are to receive a severance offer.
All requests for voluntary severance need to be submitted via RAMS. The
system automates the voluntary severance process by the use of severance
submission templates and requires the following information:
the employee’s employment details;
details of the reasons leading to the employee’s office, post or position
being abolished;
confirmation that the employee cannot be transferred within the agency
together with a statement outlining the extent of efforts made to effect a
transfer; and
any additional information that may affect the employee’s redeployment
prospects eg. an injury that may significantly impact upon the range of work
that the person is able to perform.
Page 38
Employees should not be advised of the outcome of any severance application
prior to approval being sought and obtained. Once approved, and to give effect
to voluntary severance, the agency is obligated to make an offer of severance
to the employee.
5.4 Standard Voluntary Severance Payment
Regulation 20(1) of the Public Sector Management (Redeployment and
Redundancy) Regulations 1994 provides for a standard severance payment of
3 weeks pay for each year of continuous service, up to a maximum of 52
weeks, served by the employee in the public sector (including a Ministerial
Officer). Employees who have completed more than 1 but less than 2 years of
continuous service are entitled to a severance payment equal to 4 weeks’ pay.
Service to be recognised when determining a severance payment must be
both:
service that constitutes continuous service as defined in the Wages
Employees Long Service Leave General Order (Search under General
Orders); and
service that has been served by the employee in the Western Australian
public sector.
5.5 Voluntary Severance - Rate of Pay Applicable when Higher
Duties Involved
The rate of pay to be applied when determining severance payments is
provided for in Regulation 20(7) of the Public Sector Management
(Redeployment and Redundancy) Regulations 1994. Pay includes the payment
of an allowance for temporarily undertaking duties other than those of the
employee’s substantive position or a higher duties allowance that has been
paid to the employee continuously for the preceding 12-month period.
Where an employee has been in receipt of a higher duties allowance at two
different classification levels, the higher duties allowance rate received by the
employee for the greater portion of the preceding 12-month period of the acting
period would be the rate applied for the severance calculation.
5.6 Voluntary Severance - Substituted Severance Arrangements
Agencies/SSCs can notify the Agency Support Division of the availability of
potential substituted severance placement opportunities within their portfolios.
Agency Support Division - www.psc.wa.gov.au
This “brokering service” provided by the Agency Support Division, places the
following operational requirements on agencies/SSCs:
Where a potential match exists, it is up to the two agencies/SSCs involved
to liaise directly with each other to negotiate an outcome. The agency with
the surplus employee is responsible for meeting the severance payment
costs. Unless otherwise negotiated, other associated costs, i.e., accrued
leave entitlements, would be paid by the agency with the available position.
In lieu of notice of redundancy payments (see Section 5.7) do not apply to
substituted severance arrangements.
Where a substituted severance match occurs, the agency/SSC with the
surplus employee is still required to obtain the approval of the Minister for
Public Sector Management prior to offering voluntary severance.
Substituted severance arrangements involving an employee moving across
awards and between employing authorities would need to be facilitated
through the registration of the employee as a registered employee.
5.7 Payment in Lieu of Notice of Redundancy
The Public Sector Management (Redeployment and Redundancy) Amendment
Regulations 2000 provide for notice of redundancy entitlements.
Regulation 4A places a requirement on public sector employers to provide
employees with at least 12 weeks written notice of redundancy, where the
employee’s position is to be abolished and the employee is to become surplus
to requirements.
The written notice of redundancy needs to confirm both of the following two
facts:
the employee’s office, post or position is to be abolished; and
the employee will become surplus to agency requirements.
In the absence of providing the above notice, and where the employee receives
and accepts an offer of voluntary severance made under Regulation 6, 15 or
16, of the Public Sector Management (Redeployment and Redundancy)
Regulations 1994 then the employee is entitled to receive one week’s pay for
each week, or part of a week, of notice that he or she did not receive.
The Notice of Redundancy and pay in lieu requirements came into effect on 1
September 2000. No retrospectivity arrangements were provided for.
Page 40
An in lieu of notice of redundancy payment is in addition to the voluntary
severance payment and does not form part of the employee’s “period of
restriction” for any subsequent re-employment in the public sector.
An in lieu of notice of redundancy payment is not paid when voluntary
severance is paid under substituted severance arrangements provided for by
Regulation 7 or 17 of the Public Sector Management (Redeployment and
Redundancy) Regulations 1994.
Agency Support Division - www.psc.wa.gov.au
The following examples are provided to help clarify Regulation 4A applications:
Situation 1
An employee’s position was abolished
prior to 1 September 2000. However,
the employee has only now been
declared surplus to requirements and
has received an offer of voluntary
severance under Regulation 6.
Application 1
The provisions of Regulation 4A do not
apply here as the employee’s position
had been abolished prior to Regulation
4A being added to the Public Sector
Management Act (Redeployment and
Redundancy) Regulations on 1
September 2000. No retrospectivity
arrangements apply.
Situation 2
On 1 February 2002 an employee was
provided with written notice to confirm
that their position was to be abolished
on 1 March 2002. However, the written
advice had not informed them that they
will become surplus to requirements as
their services were still required to
undertake other urgent project duties. At
that time there was a good chance that
another internal position at level would
become available in the near future.
All parties were happy with this
arrangement however 4 months later,
following completion of the project work;
the employing authority formally advised
the employee that they were “surplus to
requirements”. The employee accepted
a Regulation 6 offer of voluntary
severance.
Application 2
The provisions of Regulation 4A require
the employing authority to give the
employee at least 12 weeks written
notice of the two facts that:
their position is to be abolished,
and
they will become surplus to
requirements
In this situation the employer has only
provided the employee with written notice
of one of the two required facts.
Consequently, at the time of acceptance
of the Regulation 6 severance offer by
the employee, the person would be
entitled to receive 12 weeks pay in lieu of
redundancy notice.
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Situation 3
As a consequence of restructuring activity
a group of 10 employees were called to a
meeting on 1 March 2002 and informed
that their positions will be abolished on
the 30 June 2002, and, that they will all
become surplus to requirements from that
date. At the meeting they were all given a
Restructure Information Notice, which
formally confirmed this information to
them.
In early June, all ten employees receive
and accept Regulation 6 offers of
voluntary severance to take effect from
30 June 2002.
Application 3
The Restructure Information Notice
given to employees confirmed in writing
the two Notice of Redundancy facts
required by Regulation 4A, i.e., that
their positions will be abolished and
that they will become surplus.
Consequently, the employees are not
entitled to receive a payment in lieu of
notice of redundancy.
Situation 4
On Tuesday 5 March 2002 an employee
is given written notice that their job is to
be abolished and that they will become
surplus to requirements in 4 weeks and 4
days time. On the same day the
employee received the written notice of
redundancy, they also received an offer
of voluntary severance under Regulation
6. They accept the offer of severance 2
days later and are allowed to cease work
the following Friday, i.e. 9 March 2001.
Application 4
In this instance the employee has been
provided with 4 weeks and 4 days
notice of the fact that their job is to be
abolished and that they will become
surplus to requirements. Consequently
they are entitled to receive 8 weeks
payment in lieu of the required notice.
The fact that the employee is permitted
to leave the employ of the employing
authority prior to the date their job is to
be abolished and the date they will
become surplus to requirements
doesn’t alter the amount of pay in lieu
of redundancy notice that is required to
be paid.
The same situation would also apply to
circumstances where an employee is
permitted to leave with severance at a
later date to the date their job is to be
abolished and the date they will
become surplus to requirements.
Agency Support Division - www.psc.wa.gov.au
5.8 Voluntary Severance Offer
Voluntary severance offers need to specify the day on which the employee
accepting the offer is to resign and provide for the payment of the standard
severance payment after the resignation takes effect. An employee who
accepts an offer of voluntary severance is required to do so in writing. A sample
Offer of Voluntary Severance can be obtained from the Agency Support
Division or the Public Sector Commission website.
Employees considering an offer of voluntary severance should be strongly
encouraged to seek professional financial advice.
5.9 Letter of Severance
Public sector employees accepting voluntary severance are required to sign a
letter of severance to affirm their understanding, and acceptance, of the terms
and conditions of their voluntary severance. A sample Letter of Severance can
be obtained from the Agency Support Division or the Public Sector Commission
website.
5.10 Conditions of Re-Employment
Unless granted an exemption under Regulation 22(2) of the Public Sector
Management (Redeployment and Redundancy) Regulations 1994, persons
taking a voluntary severance payment cannot be re-employed within the public
sector for the period of restriction determined under Regulation 22(1) on either:
a contract of service basis; or
a contract for service basis, where direct consultancy arrangements apply.
Both of these arrangements imply a direct employment relationship and are not
permitted. However, contracts for service on an indirect consultancy basis can
be undertaken.
The restriction on redeployment period equates to the total of the number of
weeks of severance and leave payments made to the individual. It does not
include any period of time associated with an in lieu of notice of redundancy
payment. The same basis applies for determining the period of restriction for
employees who have worked part time.
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5.11 Severance Payment Refund Calculation
The following formula, incorporated into an example to assist agencies, should
be used to calculate a severance repayment should a person be re-employed
within the period that was used to calculate the severance payment.
A = B X (D-C) /D
Where:
A = the amount repayable.
B = Severance component of the redundancy payment as defined by
Regulation 20 of the Public Sector Management (Redeployment and
Redundancy) Regulations 1994.
C = The number of weeks from the date of the severance payment to being
re - engaged in State Government funded employment activities as an
employee of or as a consultant to a public sector employing authority.
D = the number of weeks used to calculate the severance payment (in the
period of restriction).
SEVERANCE REPAYMENT EXAMPLE:
An employee has accrued ten (10) years service with a public sector employing authority. At the time
that employee's substantive position was declared redundant, the weekly rate of pay was $500 per
week. On accepting severance the employee also received a payment for ten (10) weeks of accrued
leave.
Based on the above the total “period of restriction” is forty (40) weeks, comprised of thirty (30)
weeks for severance pay period and ten (10) weeks for the leave component.
Fifteen (15) weeks after the date the severance payment was made, the employee obtains an
exemption and takes up a position with another public sector employing authority. The amount to be
repaid would therefore be as follows:
A = B x (D-C)/D.
= $15,000 x (30 - 15)/30.
= $7,500 repayment.
Where:
B = Weekly rate of pay x 30 = $15,000 (i.e. three weeks pay for every year
of service, i.e.. 3 x 10), as per Regulation 20(1) for the employee’s severance
component.
C = 15 weeks (time elapsed since the date of their severance payment).
D = 30 weeks (severance component of period of restriction).
Agency Support Division - www.psc.wa.gov.au
5.12 Rates of Pay for Part Time Service
Regulation 3, 9, 19, and 20 of the Public Sector Management (Redeployment
and Redundancy) Regulations 1994 refers in this situation. For determining the
weekly pay that is to apply to an employee who during their period of
continuous service worked a different number of hours in different weeks the
following formula is used.
A = B x C
Where:
A = the employee’s weekly pay;
B = the employee’s full time weekly pay; and
C = the employee’s average weekly hours expressed as a
percentage of the employee’s potential full time weekly hours.
Page 46
5.13 Taxation and Superannuation Implications
Bona-Fide redundancy payments and approved early retirement scheme
payment attract concessional taxation benefits.
Concessional taxation benefits are determined by the Australian Taxation
Office (ATO) taking into account a number of individual circumstances
associated with the employee’s age and service history. Because of this it is
imperative that individual employees be advised to obtain advice directly from
the ATO.
Certain conditions determine what represents a “bona-fide” redundancy.
Information on those conditions and Eligible Termination Payments can be
found on the ATO Website.
EXAMPLE: SEVERANCE PAYMENT EXAMPLE INVOLVING DIFFERENT HOURS IN
DIFFERENT WEEKS:
An employee who has worked a different span of hours over the past 4 years of their continuous
service in the public sector has been offered and is interested in accepting an offer of severance.
They had worked an average of 40 hours per week for 6 months, 35 hours per week for 6 months,
40 hours per week per week for 12 months, 35 hours per week for 12 months and 40 hours per week
for the last 12 months. Had they been employed on a full time basis their rate of pay at the date of
accepting voluntary severance would have been $ 25,000. Their potential full time weekly hours
would have been 40 hours.
Their severance payment would be 12 weeks based on the application of Regulation 20(1) – i.e. 3
weeks pay for each year of continuous service.
The rate of pay to be applied would be calculated as follows:
A = the pay rate to be determined.
B = the pay rate they would have received had they been employed on a full time basis,
i.e. $ 25,000.
C = average weekly hours expressed as a percentage of the employees potential full
time weekly hours, i.e., 40 hours.
Calculation:
total period worked = 4 years or 208 weeks.
total hours worked in that period = 7930 hours.
average weekly hours: 7930 (total hours) divided by 208 (total weeks)
= 38.12 hours.
percentage of full time weekly hours (i.e., 40 hours) = 95.3 %.
Payment rate then based on 95.3% x current rate of pay (as defined under Regulation 3 of the Public
Sector Management (Redeployment and Redundancy) Regulations 1994).
Agency Support Division - www.psc.wa.gov.au
Similarly, for matters relating to Superannuation, individuals should contact the
GESB or their superannuation company to obtain current and relevant
superannuation advice.
5.14 Notification to Centrelink
Provisions in the Termination Change and Redundancy General Order place
requirements on employers to notify Centrelink about terminations. This applies
regardless of the number of employees involved.
As soon as possible after a decision is taken that positions are redundant and it
is known in advance that voluntary severance will, or is likely, to be offered to a
number of employees affected by significant workplace reform activity (for
example closure of a major program area) the employing authority needs to
notify Centrelink in writing providing details of:
the background circumstances/reasons for the possible severances;
the number and employment categories (permanent, contract, part time/full
time);
the total number of employees normally employed; and
the period over which the severances are likely to occur
Where voluntary severance is to be offered to an employee in “one off”
circumstance, the employing authority as soon as possible after an employee
accepts an offer of voluntary severance needs to notify Centrelink in writing
providing details of:
the background circumstances/reasons leading to the employee being
offered severance;
the employment category (i.e., permanent part time/full time, contract part
time/full time, casuals etc) of the employee accepting severance; and
the date on which the employee is to cease employment.
The notification needs to be forwarded in the form of a letter and faxed to
Centrelink’s National Office at 03-132115.
Page 48
6. Career transition services
Career transition services and a range of workshops are available for all public sector
employees facing changes in their career.
Public sector organisations are encouraged to take advantage of the programs
offered, particularly those organisations facing a change agenda. A structured career
transition program that takes into account the organisation's needs can assist
employees to recognise that organisational change is a reality. It helps them to better
cope with the stress caused by job loss and job relocation and to understand that
they are ultimately responsible for planning their own development growth and
movement within the public sector.
The programs are designed to assist all officers to effectively manage the career
transition process and to help them become 'job ready' for a broader range of
employment options.
6.1 Accessing the Career Transition Courses
The agency case manager should ideally provide details of available
workshops during the initial interview with the employee. More information on
Career Transition Programs, including the workshop calendar, and advice on
customising workshops for in-house delivery can be obtained by contacting
DTF Shared Services on 9258 0787 or 9258 0116.
Where supported, the home agency is responsible for workshop fees and the
release from duties to attend nominated workshops.
6.2 The Need for Proactivity
While the home agency can assist redeployees with the identification of
compatible job vacancies and negotiate potential public service placements on
their behalf, it is in the interest of the redeployee to adopt a proactive approach
to securing suitable employment.
It is important to reinforce with employees that by adopting a positive attitude
towards career transition, individuals may find a more rewarding and satisfying
career than in their previous employment. This in turn will serve to prevent the
more negative consequences generally associated with the adoption of a
'reactive' approach.
Agency Support Division - www.psc.wa.gov.au
6.3 Outplacement Services – Common Use Contract
While individual counselling is not an integral component of the career planning
process, some redeployees may benefit from a targeted approach or
professional intervention. This is an option open to agencies in the overall
management of a redeployee.
The Agency Support Division can provide advice in this area and the
Outplacement and Specialist Services Contract is also available to agencies.
Page 50
7. Presentation material and fact sheets
7.1 Redeployment and Redundancy Fact Sheets
To assist agencies to manage redeployment and redundancy activity, fact sheets
have been developed covering the key aspects. Electronic copies can be accessed
on the Public Sector Commission website.
7.2 Redeployment and Redundancy Presentation Material
It is recognised that agencies may wish to develop educational programs or
conduct information sessions for individuals or groups in relation to
redeployment and redundancy issues.
Presentation materials have been developed which provide an overview of the
legislative base and policy issues applicable to redeployment and redundancy.
The presentation materials are meant as a guide for agencies and can be
accessed on the Public Sector Commission website.