PM&C Enterprise Agreement 2024-27

This Agreement is made under s172 of the Fair Work Act 2009. It covers and applies to the Secretary of PM&C (on behalf of the Commonwealth) and APS employees in PM&C, except for substantive SES employees and SES-equivalents.

Section 10 – Management of excess employees

On this page

  1. Meaning of excess employee
    1. Notification of being potentially excess
    2. Declaration of excess
  2. Redeployment
    1. Retention period
  3. Voluntary Redundancy
    1. Offer of voluntary redundancy
    2. Period of notice for termination
    3. Severance benefit
    4. Severance benefit – rate of payment
  4. Involuntary Redundancy

416. The management of excess employee provisions do not apply to non-ongoing employees or employees on probation.

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Meaning of excess employee

417. An employee is excess to the requirements of PM&C if the Delegate determines:

  1. the employee is included in a class of employees employed by PM&C, and there are more employees in the class than is necessary for the efficient and economical working of PM&C;
  2. the services of the employee cannot be effectively used because of technological or other changes in the work methods, or changes in the nature, extent or organisation of the functions of PM&C; or
  3. the duties usually performed by the employee are to be performed by the employee at a different locality, and the employee is not willing to perform duties at that locality.

Notification of being potentially excess

418. The Delegate will notify employees who are potentially excess, in writing, including the reason/s, as soon as practicable.

419. The Delegate will discuss the notification with the employee and, where they choose, their representative within 30 calendar days of the notice, to consider:

  1. any measures that could be taken to remove or reduce the likelihood of an employee becoming excess, and
  2. whether re-assignment of duties, VR or redeployment may be appropriate.

420. The Delegate may invite employees who are not potentially excess to express interest in a VR, where this would allow the redeployment of potentially excess employees and aligns with workforce planning needs.

421. Where an employee becomes potentially excess or is excess, the Delegate will approve a one-off reimbursement of up to $500 (plus GST) for advice from a registered financial adviser.

Declaration of excess

422. The Delegate may determine that an employee is excess to the requirements of PM&C:

  1. 30 calendar days after the employee was notified of being potentially excess;
  2. earlier if the employee formally declines to participate in discussions; or
  3. on an earlier date agreed by the employee.

423. The Delegate will provide the options of redeployment and VR to an excess employee, as detailed below.

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Redeployment

424. If an excess employee advises that they wish to be redeployed, the Delegate will take all reasonable steps to reassign the duties of an excess employee at the same level within PM&C, or to assist in the movement of the employee to another APS agency.

425. PM&C will consider an excess employee in isolation from other applicants for an ongoing position in PM&C at or below the employee’s classification level for which the employee has applied.

426.  An employee seeking redeployment may choose to access career transition assistance through a recognised provider. PM&C will meet reasonable costs associated with these services.

427. The Delegate may approve the cost of reasonable travel and incidental expenses incurred by an excess employee in seeking alternative employment, where these are not met by a prospective employer.

Retention period

428. An excess employee will commence a retention period of 7 months on the day the employee is formally advised in writing by the Delegate that they are an excess employee.

429. If an excess employee is entitled to a redundancy payment in accordance with the NES the retention period is reduced by the number of weeks redundancy pay that the employee is entitled to under the FW Act on termination of employment.

430. The retention period and notice period may be extended by any periods of paid personal/carer’s leave not exceeding 6 months that impact the redeployment process and are supported by medical evidence.

431. During the retention period, the Delegate:

  1. will continue to take reasonable steps to find alternative suitable employment for the excess employee; and/or
  2. may reduce the excess employee’s classification as a means of securing alternative employment, after giving 28 calendar days notice to the employee.

432. If an employee’s classification is reduced during the retention period the employee will continue to be paid at their substantive base salary immediately prior to the reduction in classification, for the balance of the retention period.

433. Where the Delegate determines there is insufficient productive work available for the excess employee during the retention period, the Delegate may, with the agreement of the excess employee, terminate the employee’s employment under section 29 of the PS Act during the retention period on the grounds that they are excess to requirements and pay the balance of the retention period as a lump sum.

434. On termination, the employee will be paid a lump sum comprising:

  1. the balance of the retention period (as shortened by the number of weeks redundancy pay the employee is entitled to under the NES) and this payment will be taken to include the payment in lieu of notice of termination of employment; and
  2. any redundancy payment to which the employee is entitled to under the NES.
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Voluntary Redundancy

Offer of voluntary redundancy

435. An excess employee not seeking redeployment, or an employee who has been invited to and expressed interest in a VR, will be made a single VR offer in writing and given 30 calendar days to consider, commencing the day after the offer is made.

436. When an employee is offered a VR, they will be given information on the:

  1. amount of their severance pay and the indicative value of the balance of any annual leave and long service leave credits;
  2. details regarding superannuation;
  3. likely taxation rules applying to the various payments;
  4. length of notice the employee is entitled to; and
  5. availability of career advisory services.

Period of notice for termination

437. The employee will be provided with 4 weeks notice (or 5 weeks for an employee over 45 years of age with at least 5 years of continuous service) prior to the termination of their employment. The notice period will commence on the day after the employee is issued with a notice of termination under section 29 of the PS Act.

438. Where an employee requests and the Delegate agrees, or where the Delegate directs an earlier termination date within the notice period, the employee’s employment will be terminated under section 29 of the PS Act on that date. The employee will receive payment in lieu of notice for the unexpired portion of the notice period on the basis of:

  1. the employee’s current ordinary hours of work;
  2. the amounts payable to the employee in respect of those hours, e.g. allowances; and
  3. any other payments under the employee’s contract of employment except for accruals that would have occurred had the person remained as an employee during the relevant notice period.

Severance benefit

439. An employee who accepts a VR and has their employment terminated by the Delegate under section 29 of the PS Act on the grounds that they are excess to requirements is entitled to 2 weeks salary for each completed year of continuous service, plus a pro-rata payment for completed months of service since the last completed year of service.

440. The minimum amount payable will be 4 weeks salary and the maximum will be 48 weeks salary, subject to any minimum amount the employee is entitled to under the NES.

441. Severance payments will be calculated on a pro-rata basis for any period where they have worked part‑time hours during their period of service and where they have less than the equivalent of 24 years full‑time service.

442. Service for severance pay purposes means:

  1. service in PM&C;
  2. Government service as defined in section 10 of the LSL Act;
  3. service with the Commonwealth (other than service with a joint Commonwealth-State body corporate in which the Commonwealth does not have a controlling interest) which is recognised for long service leave purposes;
  4. service with the Australian Defence Forces;
  5. APS service immediately preceding deemed resignation under the repealed section 49 of the repealed Public Service Act 1922 if the service has not previously been recognised for severance pay purposes; and
  6. service in another organisation where the employee was moved from the APS to give effect to an administrative re-arrangement; or an employee of that organisation is engaged as an APS employee as a result of an administrative re-arrangement, and such service is recognised for long service leave purposes.

443. Service that will not count as service for severance pay purposes is any period of service which ceased through termination on the following grounds:

  1. the employee lacks, or has lost, an essential qualification for performing their duties;
  2. non-performance or unsatisfactory performance of duties;
  3. inability to perform duties because of a physical or mental incapacity;
  4. failure to satisfactorily complete an entry level program or training;
  5. failure to meet a condition of engagement imposed under subsection 22(6) of the PS Act;
  6. breach of the Code of Conduct;
  7. any other ground prescribed by the Public Service Regulations;
  8. on a ground equivalent to those above under the repealed Public Service Act 1922;
  9. through voluntary retirement at or above the minimum retiring age applicable to the employee;
  10. with the payment of a retrenchment benefit or similar payment or an employer financed retirement benefit.

444. For earlier periods of service to count as severance pay, there must be no breaks between periods of service, except where:

  • the break in service is less than one month and occurs where an offer of employment with the new employer was made and accepted by the employee before ceasing employment with the preceding employer; or
  • the earlier period of service was with the APS and ceased because the employee was deemed to have resigned from the APS on marriage under the repealed section 49 of the repealed Public Service Act 1922.

Severance benefit – rate of payment

445. Salary for severance pay purposes will include:

  1. the employee’s substantive salary adjusted on a pro-rata basis for periods of part‑time service;
  2. higher duties allowance for performance of duties at a higher classification level where the employee has been performing duties, and continues to perform duties, at the higher classification level for a continuous period of at least 12 months immediately prior to the date on which the employee was given notice of termination of employment; and
  3. other allowances in the nature of salary which have been paid to the employee on a regular basis and have continued to be paid during periods of annual leave, excluding allowances which are reimbursements for expenses incurred.
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Involuntary Redundancy

446. At the end of the retention period the Delegate may make the excess employee involuntarily redundant under section 29 of the PS Act.

447. An excess employee will not be made involuntarily redundant where:

  1. the employee has not been invited to accept an offer of VR;
  2. the employee has requested a VR, but the Delegate has refused; or
  3. the employee has not been given 4 weeks notice of termination of employment (or 5 weeks for an employee over 45 years of age with at least 5 years’ continuous service), or payment in lieu of notice.
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