The purpose of this Circular is to clarify the salary maintenance provisions for displaced public sector employees who are excess to their organisation's needs.

The Managing Displaced Employees policy, set out in Premier's Memorandum No. 96-5 dated 20 February 1996 states that:

'Where displaced employees are redeployed to work valued at a lower rate of pay, they are entitled to salary maintenance at their former substantive rate for a period of 12 months or such other period as approved by the Public Employment Office, commencing from the date of being advised in writing by the employing organisation that they are excess to the organisation's requirements.'

Chief Executives are to ensure that displaced employees are given meaningful work to perform. Wherever possible staff should be redeployed to work of the same value as their substantive salary. Where this is not possible staff should be provided with other duties and the value of the work being performed must be assessed.

Where the work allocated to the displaced employee is of a lower value than their substantive rate of pay the employee should be notified in writing that they are excess to the organisation's requirements, if this has not already occurred. The excess employee would then be entitled to salary maintenance for a period up to 12 months, unless otherwise approved by the Premier's Department.

In all cases where the displaced employee is placed in a position of a lower grade or allocated work of lower value this must be treated as a period of salary maintenance. During the period of salary maintenance every endeavour should be made to find a suitable position at the officer's substantive salary to which they may be redeployed.

Should the excess officer be afforded a placement in a position of equivalent or higher value than their substantive salary then the period of salary maintenance is suspended and that period of employment does not count as part of the twelve month salary maintenance period.

Where the work allocated to the displaced employee is of a lower value than their substantive rate of pay and the period of salary maintenance has expired public service organisations should consider action to reduce the officer's salary pursuant to section 52 of the Public Sector Management Act 1988. Action under section 52 requires the Premier's Department approval. Officers whose salary is reduced due to a suitable position at their existing salary not being available may be entitled to preference in consideration for future positions at their previous salary in terms of section 52(4) of the Act.

It should also be noted that employees offered voluntary redundancy and do not accept it, should not be given any expectation that a further offer will be made during or following a period of salary maintenance.

If you require further information concerning this matter, please contact Elizabeth Casey on telephone number (02) 9228 3564 or Peter Donohue on telephone number (02) 9228 3269.

This memorandum has been superseded by M2008-08 Consolidated Policy On Managing Displaced Employees.