CHANGE MANAGEMENT CHECKLIST · Structural change management | Public Sector Commission 1.2 Consultation when Introducing Change A Termination, Change and Redundancy General Order

Agency Support Division - www.publicsector.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 6552 8600 or [email protected].

M C Wauchope PUBLIC SECTOR COMMISSIONER

http://www.psc.wa.gov.au/

http://www.publicsector.wa.gov.au/document/redeployment-and-redundancy-policy-manual

mailto:[email protected]

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Contents Foreword ........................................................................................................................................1

Contents .........................................................................................................................................2

1. Structural Change Management Resources ........................................................................5 1.1 Structural Change Management....................................................................................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 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 ............................................................. 32 4.8.12 Exemption to Refer Vacancies ............................................................................. 32 4.8.13 Pool Recruitment ................................................................................................. 33


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4.8.14 Resubmission of Cleared, Non Advertised Vacancies .......................................... 34 4.8.15 SES Officers ........................................................................................................ 34 4.8.16 Vacancy defined .................................................................................................. 34

5. Voluntary severance ........................................................................................................... 35 5.1 Legislative Framework ....................................................................................................... 35 5.2 Overview of Severance Policy ........................................................................................... 35 5.3 Voluntary Severance Approval Procedures ...................................................................... 36 5.4 Standard Voluntary Severance Payment ........................................................................... 37 5.5 Voluntary Severance - Rate of Pay Applicable when Higher Duties Involved ................. 37 5.6 Voluntary Severance - Substituted Severance Arrangements ......................................... 38 5.7 Payment in Lieu of Notice of Redundancy ........................................................................ 38 5.8 Voluntary Severance Offer ................................................................................................. 42 5.9 Letter of Severance ............................................................................................................ 42 5.10 Conditions of Re-Employment ........................................................................................... 42 5.11 Severance Payment Refund Calculation ........................................................................... 43 5.12 Rates of Pay for Part Time Service .................................................................................... 44 5.13 Taxation and Superannuation Implications ....................................................................... 45 5.14 Notification to Centrelink ................................................................................................... 45 6. Career transition services .................................................................................................. 47 6.1 Accessing Career Transition Courses ............................................................................... 47 6.2 The Need for Pro-activity.................................................................................................... 47 6.3 Career Transition Services – Common Use Contract ...................................................... 47 7. Presentation material and employee information sheets ................................................ 48 7.1 Redeployment and Redundancy Employee Information Sheets ...................................... 48 7.2 Redeployment and Redundancy Presentation Material .................................................... 48


1. Structural Change Management Resources

1.1 Structural Change Management

Structural change often affects people and their positions and can cause a degree of disruption to employees. People need to be informed of what’s happening—their options, what the change process involves and what support services are available. A new publication Structural change management has been developed to assist agencies to successfully manage change and complements the advisory and consultancy service offered by the Agency Support Division. The publication includes several templates for agencies to modify and use when faced with leading structural change.

It is available on the PSC website at: Structural change management | Public Sector Commission

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.


http://www.publicsector.wa.gov.au/document/structural-change-management-guide-assist-agencies-manage-change

http://www.publicsector.wa.gov.au/public-administration/structural-change-management

http://www.publicsector.wa.gov.au/public-administration/structural-change-management

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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.


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.


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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.


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.


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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

+


1.9 Resources and Contacts

Agency Support Division – Telephone 6552 8600 or email [email protected]

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 2nd floor, Dumas House, 2 Havelock Street West Perth 6005 and is available to support public sector organisations in achieving their restructuring goals.

Early involvement and consultation with the Agency Support Division has proven to be beneficial in facilitating staff reductions, contracting out 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

The Department of Finance (Government Procurement) manages a common use contract for the provision of Human Resource Services (CUA10410) which includes providers that offer change management support services.


mailto:[email protected]

http://www.contractswa.finance.wa.gov.au/family.jsp?item=82&STMP=120420073755135

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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.


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(2), 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.




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 still 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 1.2.

• 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.


http://www.publicsector.wa.gov.au/publications-resources/instructions-standards-and-circulars/public-sector-standards-human-resource-management

http://www.wairc.wa.gov.au/index.cfm?objectId=C2594CB4-C5C5-4436-0C73AFBC119F2FC4


http://www.publicsector.wa.gov.au/document/public-sector-commissioners-circular-2009-28-redeployment-and-voluntary-severance-policy

http://www.commerce.wa.gov.au/LabourRelations/PDF/Circulars/07_92.pdf

http://www.commerce.wa.gov.au/LabourRelations/PDF/Circulars/19_86.pdf

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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.


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 the redeployee’s employing authority; and


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• 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; • 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; and • 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.


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4. Redeployment management

4.1 Government Position Statement

In PSC Circular 2009-28 (available on the Public Sector Commission website), the Public Sector Commissioner confirmed that the effective management of surplus staff is a priority for 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.

http://www.publicsector.wa.gov.au/publications-resources/instructions-standards-and-circulars/public-sector-commissioners-circulars


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.


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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.


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 redeployee’s 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 redeployee’s 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 redeployee’s 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.


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 redeployee’s 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 redeployee’s case manager. Also see 4.8.9


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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, 2nd Floor, Dumas House, 2 Havelock Street West Perth 6005.

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.


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.


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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.


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.


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;


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• 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 redeployee’s 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 performance 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.

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.

The Public Sector Management (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


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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 G7 officer. This level carries a salary range of $85,512 - to $91,070 per annum. To determine the range of salaries which may constitute potentially suitable employment, the maximum of the range i.e. $91,070- is multiplied by 80% to give the minimum acceptable salary and multiplied by 110% to give the maximum acceptable salary, i.e. $91,070- x 80% = $72,856 and $91,070 x 110% = $100,177.

Therefore alternative positions that carry a maximum salary of between $72,856 and $100,177 may, if all other criteria are met, be considered to be suitable positions.

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 The Deputy Commissioner, Agency Support Division, Public Sector Commission, has delegated authority to exempt under Regulation 24(2) of the Public Sector Management (Redeployment and Redundancy) Regulations 1994 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 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


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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.

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.


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.


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• 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

The Deputy Commissioner Agency Support, Public Sector Commission has delegated authority for approving all voluntary severance applications. Prior to offers of voluntary severance being made, all requests are required to be submitted to the Agency Support Division for approval. This requirement applies to both internal surplus employees and registered redeployees and for 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.


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 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.




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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.

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 Public Sector Commission 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 provided 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.


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.


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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.


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.


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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.

http://www.publicsector.wa.gov.au/document/sample-offer-voluntary-severance

http://www.publicsector.wa.gov.au/document/sample-letter-severance

http://www.publicsector.wa.gov.au/document/sample-letter-severance


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).


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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 refer 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.

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).


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.

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;


http://www.ato.gov.au/superfunds/content.aspx?doc=/content/12425.htm

http://www.gesb.wa.gov.au/

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• 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 to Centrelink’s National Office at Reply Paid 7800, Canberra BC, ACT 2610.


6. Career transition services

Public sector organisations facing change are encouraged to seek out and provide career transition services and/or workshops.

Structured career transition services/ programs that take into account the organisation's needs can assist employees to recognise that organisational change is a reality. It help employees to:

• better cope with the stress caused by job loss and job relocation; • understand that they are ultimately responsible for planning their own

development growth and movement within the public sector; • more effectively manage the career transition process; and • help them become 'job ready' for a broader range of employment options.

6.1 Accessing Career Transition Courses

The agency case manager should ideally provide details of available career transition services/workshops during the initial interview with the employee.

Where supported, the home agency is responsible for workshop fees and the release from duties to attend nominated workshops.

6.2 The Need for Pro-activity

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.

6.3 Career Transition Services – Common Use Contract

The Department of Finance (Government Procurement) manages a common use contract for the provision of Human Resource Services (CUA10410) which includes providers that offer change management support services.


http://www.contractswa.finance.wa.gov.au/family.jsp?item=82&STMP=120420073755135

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7. Presentation material and employee information sheets 7.1 Redeployment and Redundancy Employee Information Sheets

To assist agencies to manage redeployment and redundancy activity, information 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 material has been developed which provide an overview of the legislative base and policy issues applicable to redeployment and redundancy.

The presentation material is provided as a guide for agencies and can be accessed on the Public Sector Commission website.

http://www.publicsector.wa.gov.au/public-administration/structural-change-management/redeployment/redeployment-information-employees

http://www.publicsector.wa.gov.au/document/redeployment-and-redundancy-presentation-material

Documents

CHANGE MANAGEMENT CHECKLIST · Structural change management | Public Sector Commission 1.2 Consultation when Introducing Change A Termination, Change and Redundancy General Order