This Memorandum explains the arrangements for managing displaced employees in all public sector

organisations. It supersedes Memorandum No. 1995-41 dated 1 November 1995. The Interim Guidelines on Managing Displaced Employees are now replaced by the attached Policy.

Key features of the Policy on Managing Displaced Employees are:

• an emphasis on redeployment;
• voluntary redundancy, where redeployment is not practicable;
• full and appropriate consultative arrangements with unions;
• details of the services to be provided to all displaced employees including counselling and training services; and
• protection to ensure that equal employment opportunity groups are not disproportionately affected.

If your organisation requires further information or advice on this Policy please contact:
Ian Peters, Director, Employee Relations, Public Employment Office, on telephone number (02) 228 3530; or Paul Baker, Manager, Workforce Management Centre on telephone number (02) 266 8108.

Your assistance in implementing this Policy is appreciated.

Bob Carr
Premier

Issued: Public Employment Office
Contact Officer: Paul Baker
Telephone No: (02) 266 8108
Date: 20 February 1996

This memorandum has been superseded by M2008-08 Consolidated Policy On Managing Displaced Employees.

The Public Employment Office is committed to ensuring continuous improvement in the performance of public sector organisations in New South Wales.

As you are aware, the Government has indicated that there will be no forced redundancies. Every effort should be made to redeploy displaced employees in your organisation. A displaced employee is a person whose position/job no longer exists due to a restructure or other administrative decision, including where the position/job is moved to a substantially different work location.

Redeployment is the principal means for managing displaced employees whose positions/jobs have been deleted. A displaced employee may be redeployed to a position/job within their existing organisation or another organisation. In certain circumstances, voluntary redundancy may be offered to displaced

employees where it is considered that redeployment is not viable in a reasonable period of time.

Voluntary Redundancy will be offered only in cases where:

• a facility is to close, and/or functions associated with the positions/jobs at a facility are discontinued; or
• restructuring within an organisation has resulted in a loss of positions/jobs.

In addition it is necessary that:

• the organisation, Workforce Management Centre and the relevant unions consider it impractical to retrain the displaced employees for the purposes of redeployment and the knowledge and skills relevant to deleted positions/jobs are not in demand by public organisations; and
• full consultation between the relevant Minister, organisation, Workforce Management Centre (WMC) and relevant unions has been completed (the parties), and the Minister approves of a course of action.

Voluntary redundancy focuses on the positions/jobs affected, not individual employees. Nevertheless, employees are affected and this Policy seeks to assist them.

In some special circumstances a more general program of voluntary redundancies may be agreed by the parties. This may be necessary given the numbers, occupations and locations of positions/jobs affected by the decisions.

The circumstances that may lead to voluntary redundancy are expected to be where the parties agree that redeployment is not likely to be viable in a reasonable period of time.

Chief Executives should ensure that consultation is undertaken with relevant public sector unions, ideally to the point of agreement, prior to seeking the support of the Workforce Management Centre and the approval of the relevant Minister to proceed with voluntary redundancy.

This Policy includes a number of important changes to the existing voluntary redundancy arrangements particularly in relation to access, information on entitlements, provision of assistance to those who take the package and notice provisions.

The broad approval process for voluntary redundancy is as follows:

• full consultation between the Chief Executive of the organisation and relevant unions on the positions/jobs affected;
• advice from Workforce Management Centre to the organisation on the potential for redeployment in the NSW public sector in a reasonable period of time;
• voluntary redundancy program recommendation to the relevant Minister where Workforce Management Centre advises that redeployment is not viable. Ideally this should be supported by the relevant unions; and
• Minister's approval to proceed.

Key features of any voluntary redundancy implementation program should include that all displaced, or potentially displaced, employees have access to the following:

• information sessions;
• professional vocational and personal counselling throughout the process;
• interpreters and appropriate bi-lingual information;
• ensure that line managers play an effective role throughout the process; and
• clear communication on entitlements and services that are available.

The content, timing, and extent of these support services, and any other additional services; should so far as possible be agreed between the organisation's Chief Executive and the relevant unions prior to implementation. The Public Employment Office may approve of external service providers where necessary.

The Workforce Management Centre, Labor Council of NSW, and the public sector unions are committed to the effective implementation of this Policy and will monitor these arrangements to ensure their fair and equitable application. Your attention is also drawn to the paper "Successful Restructuring - The People Aspects" a guide for Chief Executives based on experiences from the restructure of public organisations produced by the Office of the Director of Equal Opportunity in Public Employment. The document emphasises the importance of decisions taken during restructure being balanced and

fair for customers, public employees, and the community as a whole. It is intended that further case studies be developed to assist public organisations in managing displaced employees.

I encourage you to use the services of the Public Employment Office and in particular the Workforce Management Centre in the management of displaced employees. Any enquiries on this matter can be directed to Ian Peters on (02) 228 3530 or Paul Baker on (02) 266 8108.

KEN CRIPPS
Commissioner
20 February 1996

CONTENTS

Policy on Managing Displaced Employees

Policy Statement
Legislative provisions
Related policies
Principles of managing displaced employees
Notifications, consultations and authorisations required
Coverage of policy on managing displaced employees
Finalisation of displaced employee/redeployment actions

Appendix A
Workforce Management Centre - Services

1. Co-ordinated Redeployment Package
Conditions of redeployment to a new organisation
Salary maintenance

2. Voluntary Redundancy Package
Offering Voluntary Redundancy
Obligations of employees
Assessment, counselling and training
Taxation implications

Appendix B
Equal Employment Opportunity Statistics

Appendix C
Agreed Consultative Arrangements

Policy Statement
The Government of New South Wales is committed to achieving continuous improvement in the performance of public organisations. Where changes result in public employees becoming displaced, the Government is most conscious of its responsibilities as an employer and its wider social objectives in relation to the community.

The Government is committed to ensuring that public employees are well prepared for employment changes resulting from restructuring and other administrative priorities of public organisations. It values and recognises that employees possess skills, experience and attributes which may be used in many parts of the public sector.

Decisions in relation to displaced employees are to be based on professional management practice, systematic restructuring processes as well as merit and equity principles.

Redeployment is the principal means for managing displaced employees whose positions/jobs have been deleted. A displaced employee may be redeployed to a position/job within their existing organisation or another organisation. In certain circumstances, voluntary redundancy may be offered to displaced employees where it is considered that redeployment is not viable in a reasonable period of time (see Appendices A & C).

Redeployment is available to a suitable position/job elsewhere in the public sector whenever suitable and sufficient vacancies exist, or are expected to exist in a reasonable period of time. This may involve placement in a position/job of different classification or grade with a slight differential in salary (as a guide 5% or one grade) or a lower salary. Displaced employees who are excess and redeployed to a position with a lower salary are entitled to salary maintenance for a period of 12 months or such other period as approved by the Public Employment Office.

Voluntary redundancy can only apply wherever it is not expected that displaced employee(s) can be redeployed. Voluntary redundancy must be a genuine choice for those employees accepting offers.

A choice for employees between redeployment or voluntary redundancy may be approved, by the relevant Minister and the Public Employment Office, in circumstances where it is known that not all of the displaced employees are able to be placed in vacancies and some genuinely sect voluntary redundancy.

To facilitate the redeployment of employees who decline an offer of voluntary redundancy, the organisation should consider the possibility of those employees exchanging positions/jobs with others who are not affected but have indicated that they would accept voluntary redundancy. Tile Workforce Management Centre is available to assist with redeployment between organisations.

Displaced employees will be kept fully informed of redeployment opportunities, the likelihood of a reduction in salary after the period of salary maintenance and the possibility of an offer of voluntary redundancy.

Employees who have been, or are to be redeployed, are entitled to professional counselling, training and placement assistance. Those who accept voluntary redundancy are eligible for package arrangements contained in this Policy as well as professional counselling and training assistance.

Displaced employees who are not yet declared excess to the needs of their organisation, pending consideration of suitable placement within the organisation, may also access professional counselling, training and other appropriate services.

Further details are at Appendix A.

Legislative provisions

• Public Sector Management Act 1988
• Anti-Discrimination Act 1977

Related Policies

• Merit
• Flexible Work Practices
• Equal Employment Opportunity
• New South Wales Charter of Principles for a Culturally Diverse Society
• Successful Restructuring - People Aspects
• Service Competition Policy

Principles of managing displaced employees

Decision making
Decisions on numbers and deployment of employees should be reached through a systematic process that takes account of the organisation's current and future plans and functions, budget, customer service delivery obligations, flexible employment options and good employment practice. Good employment practice involves focusing on all of the employee's skills, not just those which are currently recognised or utilised.

When assessing strategies for reducing numbers of employees, organisations should consider the viability of a range of options including natural attrition, limiting recruitment and introduction of flexible work practices such as part-time work, job share, part-time leave without pay and part year employment.

Before any decision is made about skills and competencies needed and the retention and separation of excess employees organisations should ensure that:

• the requirements of the New South Wales Charter of Principles for a Culturally Diverse Society for delivery of appropriate services are met;
• Equal Employment Opportunity groups (women, homosexuals, Aboriginal and Torres Strait Islander people, racial, ethnic and ethno-religious minority groups and people with disabilities) are not disproportionately affected and decisions should not be made on the basis of age, sex, pregnancy, marital status, disability, race or ethnicity; and
• outcomes are fair and management of people is sensitive to the pressures of change on public employees and their families.

Organisations are to monitor the impact of their restructuring and other administrative decisions. Where changes occur, statistics are to be provided quarterly to the Workforce Management Centre on the profile (numbers and grade) of the organisation's workforce to ensure that equal employment opportunity groups are not disproportionately affected - Appendix B.

Unsatisfactory performance, or allegations of unsatisfactory, or poor, performance are not grounds for declaring employees excess or displacing employees.

Redeployment
Displaced employees often possess job skills required by organisations.
Permanent employees are available to be placed in positions/jobs.
Temporary employees with service in excess of twelve months and ongoing engagements (not engaged for a specific term or project) may be considered for temporary opportunities.

Displaced employees may be redeployed within the organisation or to another public sector organisation. This may involve placement in a position/job of different classification or grade with a slight differential in salary (5% or one grade). Where redeployed to a lower rate of pay, salary maintenance applies for a period of 12 months or such other period as approved by the Public Employment Office. However, wherever possible, a displaced employee should be redeployed to a position of equivalent grade and salary.

Displaced employees may be placed in any suitable vacancy without advertising.

Displaced employees who are excess are considered before other applicants for advertised vacancies against the criteria of whether the employee:

• meets the essential requirements for the position/job; and/or
• can perform adequately or is likely to perform adequately in the position/job in a reasonable period of time, given access to appropriate training.

The onus is on the selecting organisation to show why the excess employee cannot meet the criteria.

A displaced employee, or a union on their behalf, has an opportunity to present further information to the Workforce Management Centre on the possibility of redeployment between organisations where an assessment has been made that the individual is not redeployable to a position.

Where more than one displaced employee declared excess is seeking redeployment to the same vacancy, selection is on merit.

While the emphasis is on placement of permanent employees in positions/jobs, the Workforce Management Centre can arrange immediate trial placement of displaced employees declared excess for periods up to 3 months after which time the organisation may appoint them without the need to advertise. If the placement is not satisfactory to the organisation, the employee becomes available for other placements where this assists with the employee's chances of redeployment to a position/job.

The employee and Workforce Management Centre, are to be advised of the employee's progress on an agreed basis during the trial period. This is to ensure that appropriate training and/or development requirements for the employee may be implemented, and the employee's progress during the trial can be properly monitored. The employee, and Workforce Management Centre, must be informed in writing, why the trial is not satisfactory.

Displaced employees who are not yet declared excess to the needs of their organisation, pending consideration of suitable placement within the organisation, also may be given priority consideration for vacancies. This will occur where no excess employee has sought to be redeployed to the position.

Displaced employees must:

• make themselves available to be considered for redeployment to a vacancy; and
• accept reasonable redeployment opportunities on existing salary.

Organisations must:

• facilitate redeployment action; and
• release employees immediately for redeployment opportunities

Notification, consultations and authorisations required

When situations are identified which the Chief Executive and the Minister responsible for the organisation agree are likely to result in displaced employees, the organisation must immediately notify the Workforce Management Centre.

Decisions on the management of displaced employees are to be made following:

• full consultation between the Chief Executive of the organisation and relevant unions on the positions/jobs affected; and
• advice from Workforce Management Centre to the organisation and relevant unions on the potential for redeployment in the NSW public sector in a reasonable period of time.

Responsibility for redeployment of displaced employees rest with the Chief Executive of the employing organisation.

All Chief Executives are to take such steps as are practicable to assist other organisations redeploy displaced employees. Prior advice of vacancies to the Workforce Management Centre before advertising is one practical step Chief Executives should consider.

A voluntary redundancy program recommendation may be made by the Chief Executive to the relevant Minister where the Workforce Management Centre advises that redeployment is not viable. Ideally this should be supported by the relevant unions. The Minister's approval is required to proceed.

Organisations are to provide advice to the Workforce Management Centre and relevant public sector unions or Labor Council of NSW, as appropriate, on any approved voluntary redundancy program. The advice is to include:

(i) positions/jobs and classifications which are to be subject to redundancies; and
(ii) locations relevant to such positions. See agreed consultative arrangements at Appendix C.

Coverage of policy on managing displaced employees
This policy covers all NSW public sector organisations.

Finalisation of displaced employee/redeployment actions
Redeployment is a partnership between the:

• individual employee;
• employing organisation;
• prospective employing organisation; and
• Workforce Management Centre.

Each carries a responsibility in the redeployment process.

In all instances the primary responsibilities for redeployment rest with the individual and the employing organisation. Experience shows that most redeployment occurs within the existing employing organisation. The Workforce Management Centre can facilitate redeployment across organisations as opportunities arise.

The Workforce Management Centre will continuously review the situation of each displaced employee who has been declared excess.
Organisations should raise concerns about individual cases with the Commissioner for Public Employment.
The employee has a responsibility to participate fully in the redeployment process.

While there is no prescribed maximum period of redeployment (formerly 6 months), employees will need to consider their circumstances in the context of the availability of work, limits to salary maintenance and the availability of voluntary redundancy. Voluntary redundancy requires Workforce Management Centre concurrence and the relevant Minister 's approval.

Procedures
Implementing displaced employees processes

Following negotiation with the relevant unions, consultation with the Workforce Management Centre on redeployment and voluntary redundancy and Ministerial approval to proceed, organisations may implement displaced employee processes.

Only employees skilled in dealing sensitively with people should be nominated and trained to co-ordinate implementation of displaced employee processes at the organisation level. The Workforce Management Centre is available to assist.

Organisation employees should also be available to answer queries and supply information. Where the numbers warrant, Chief Executives should consider a specific centralised unit to co-ordinate services for displaced employees.

Organisations should arrange "information sessions" involving the Workforce Management Centre, Superannuation and Senior Agency Officers which can be made available to all employees. While information sessions have been found to decrease the need for subsequent personal counselling, including stress counselling, organisations should take into account the needs off their employees, and representations of relevant unions acting on behalf of affected members.

Displaced employees - process steps

The displaced employee process should incorporate the following:

1. Organisations are required to consult, and as far as possible reach agreement, with the relevant unions on appropriate services, and service providers, for displaced employees in the organisation prior to implementation. The Workforce Management Centre is available to assist in this process.
2. Displaced employees are to be informed in writing by the organisation that their positions have been deleted and of the available services; and
3. that they may be redeployed, within the organisation, or to another organisation, with the relevant salary maintenance entitlements, and other applicable conditions; or
4. where approved, invited to express an interest in voluntary redundancy. An offer of voluntary redundancy must be accepted within 2 weeks for the additional payment of up to 8 weeks, provided that access has been given to appropriate services; and
5. all displaced employees, when informed that their positions have been deleted shall be advised of the range of services, and information sources available to them in order to make informed decisions for the future. The services and information sources may include, but are not limited to:
   
   o counselling services, including stress counselling;
   o information on superannuation and financial entitlements;
   o organisation contacts;
   o Workforce Management Centre services; and
   o relevant union(s) contacts.

       3.   The Chief Executives notifies the Workforce Management Centre of employees who elect redeployment at point 2 as well as implements immediate action to redeploy within the organisation.

        4.   All Chief Executives and the Workforce Management Centre are to co-operate in redeploying employees as quickly as possible both within and across organisations.

        5.   While there is no prescribed maximum period of redeployment (formerly 6 months), the employee will need to consider their circumstances in the context of the availability of work, limits to salary maintenance and the availability of voluntary redundancy.

        6.   Where redeployment proves to be not practicable, the Chief Executive should with the concurrence of the Workforce Management Centre and approval of their Minister offer the employees voluntary redundancy (see Appendix C).

         7.  The Chief Executive may offer voluntary redundancy to those employees who have chosen voluntary redundancy at points 2 and 6. Those who accept are entitled to the voluntary redundancy package (see Appendix A).

APPENDIX A
Workforce Management Centre - Services
These services form part of the Government's policy on managing displaced employees and are part of the Government's commitment to ensuring that public employees are well prepared for employment changes resulting from restructuring of public organisations.

The services are made up of two packages designed to assist in managing displaced employees:

• Co-ordinated Redeployment Package
• Voluntary Redundancy Package

The services are available to all public sector employees.

Eligibility
All displaced employees may seek redeployment except for the following:

• employees engaged on a short term and/or casual basis or for a specific period;
• temporary employees with less than 12 months continuous service;
• temporary employees engaged for a specific time or specific project in excess of 12 months when the contract of employment has come to an end due to the expiry of time or the original project has been completed;
• apprentices at the conclusions of their apprenticeship or within a short period thereafter;
• employees on workers' compensation whose claim is based on compensation for termination (unless the agreement of their workers' compensation insurer is obtained to any separation payment being made) or others awaiting determination of claims against the employer for termination of services; and
• employees in relation to whom action is in train to terminate their services.

Counselling, training and placement
Where displaced employees are to be redeployed they are entitled to assistance in seeking alternative employment or additional training to develop knowledge and skills which are required by public organisations.

Unless approved otherwise by the Public Employment Office, assistance may only be provided by the employing organisations and through services provided by the Workforce Management Centre.

Services of the Workforce Management Centre are available at no cost to budget sector organisations. Non-budget sector organisations are to access the services of the Workforce Management Centre on a fee for service basis. Workforce Management Centre services can be tailored to meet the counselling, training and placement needs of individuals and organisations.

Where non-budget sector organisations are not at present accessing the services of the Workforce Management Centre, approval will need to be sought from the Commissioner for Public Employment to their alternative arrangements. The relevant unions should be advised of the reasons for any approval. The standards of service should be no less than those available through the Workforce Management Centre. Any unresolved dispute between the relevant unions and the organisation concerning alternative arrangements should be referred to the Commissioner for Public Employment.

Organisations must ensure that assistance provided as part of the Co-ordinated Redeployment Package incorporates, as appropriate for each employee, the following:

• access to professional vocational counselling regarding career transition, training opportunities and occupational information;
• access to stress management counselling;
• placement in programs to upgrade existing skills or acquire new skills, including payment of compulsory fees, training allowances, books and equipment;
• assistance with job placement; and
• assistance with trade/skill certification.

Workforce Management Centre training support must be approved beforehand by way of an agreed individual action plan.

Primary responsibility for redeployment assistance rests with the employing organisation. The Workforce Management Centre facilitates redeployment between organisations. The individual is responsible for maintaining a pro-active job search.

Conditions of redeployment to a new organisation
Where employees are redeployed to a new organisation the following arrangements apply:

Extended Leave, Paid Leave including Sick Leave, Annual Leave Loading and Maternity Leave
Mobility provisions of Public Sector Management Act.

Travelling Compensation
Crown Employees (Travelling Compensation) Award applicable for a trial period, if a displaced employee is transferred.

Transferred Officers
Crown Employees (Transferred Officers Compensation) Award if a displaced employee is redeployed to a permanent position, or is deemed satisfactory after the trial period.

Medical examinations
Where employees have previously undertaken work with the same health requirements as the new position/job and they have met these requirements, then no further health review is needed.

If the new position/job health requirements are different, then the employee will need to undertake the same health review as required by external applicants (eg health declaration, medical examination).

Appointment procedures
The receiving organisation is responsible for completing employment procedures.

Probation
No probationary period is necessary unless the probation period has not been completed.

Other conditions
All other conditions of employment of the new organisation apply to the redeployed employee.

Salary maintenance
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.

Voluntary Redundancy Package
Offering Voluntary Redundancy

Voluntary Redundancy will be offered in cases where:

• a facility is to close, and or functions associated with the positions/jobs at a facility are discontinued including where the position/job is moved to a substantially different work location (other than under the Service Competition Policy); or
• restructuring within an organisation has resulted in a loss of positions/jobs.

In addition it is necessary that:

• the organisation, Workforce Management Centre and the relevant unions consider it impractical to retrain the displaced employees for the purposes of redeployment and the knowledge and skills relevant to deleted positions/jobs are not in demand by public organisations; and
• full consultation between the relevant Minister, organisation, Workforce Management Centre and relevant unions has been completed (the parties), and the Minister approves of a course of action.

Voluntary redundancy focuses on the positions/jobs affected, not individual employees. In some special circumstances a more general program of voluntary redundancies may be agreed by the parties. This may be necessary given the numbers, occupations and locations of positions/jobs affected by the decisions.

For policy and procedures to be adopted in relation to voluntary redundancy of displaced employees refer to the Managing Displaced Employees policy to which this document is an Appendix.

Eligibility
Where approved, displaced employees are eligible for an offer of a voluntary redundancy by the organisation except the following:

• employees engaged on a short term and/or casual basis or for a specific period;
• temporary employees with less than 12 months continuous service;
• temporary employees engaged for a specific time or specific project in excess of 12 months when the contract of employment has come to an end due to the expiry of time or the original project has been completed;
• apprentices at the conclusions of their apprenticeship or within a short period thereafter;
• employees on workers' compensation whose claim is based on compensation for termination (unless the agreement of their workers' compensation insurer is obtained to any separation payment being made) or others awaiting determination of claims against the employer for termination of services; and
• employees in relation to whom action is in train to terminate their services.

Voluntary Redundancy of displaced employees
Voluntary Redundancy Payments

Where employees accept voluntary redundancy they are entitled to the following payments:

four weeks notice or payment in lieu;
         plus
an additional one week's notice or pay in lieu for employees aged 45 years and over, with 5 or more years of completed service;
         plus
severance pay at the rate of 2 weeks per year of continuous service with a maximum of 26 weeks;
         plus
the benefit allowable as a contributor to a retirement fund;
         plus
pro rata annual leave loading in respect of leave accrued at the date of termination.

Those employees who accept an offer of voluntary redundancy within 2 weeks of the offer being made and terminate employment within the time nominated by the employer will be entitled to the following additional payments:

Less than 1 year's service; 2 week's pay

1 year and less than 2 year's service; 4 weeks pay

2 years and less than 3 year's service; 6 weeks pay

3 year's service and over; 8 weeks pay

All continuous service in public sector organisations in accordance with Schedule 5A of the Public Sector Management Act 1988 is recognised for voluntary redundancy purposes, provided no previous redundancy payment has been made for this service. Where an employee has resigned from a public organisation in order to take up employment with another, service may be regarded as continuous for the payment of redundancy even though the employee may have taken a period of leave or break in service of up to 2 months prior to taking up duty with the new organisation.

Obligations of employees
Re-employment

Employees accepting voluntary redundancy are required to sign an undertaking to refund to the Crown that proportion of the severance payment applying to the period of re-employment should they be re-employed in any capacity (including employment in a temporary, part-time or casual or consultancy or contracting capacity) in a New South Wales public organisation within the period covered by the separation payment. The repayment covers the severance payment (up to 26 weeks) and the additional up to 8 week's payment, but excludes the pay in lieu of notice.

It is the responsibility of the Chief Executive of the new employing organisation to ensure that this requirement for repayment is met. Chief Executives should introduce procedures in organisations to ensure that:

• questions regarding any previous public agency redundancy, retrenchment or termination payments are asked of the recommended person, by the selection panel convenor or manager responsible, before any permanent or temporary appointment or part time or casual or consultancy engagement recommendation is submitted for approval;
• if repayment is appropriate such repayment is a condition of the offer of employment or engagement as a consultant;
• letters of appointment inform prospective employees that non-disclosure of Government redundancy payments which would otherwise be required to be proportionally refunded will invalidate the appointment, and may result in the appointment being annulled.

The Public Employment Office may remove the obligation to repay in certain limited circumstances.

Assessment, counselling and training
Employees who accept voluntary redundancy are entitled to assistance in seeking alternative employment or additional knowledge and skills which are in demand in the broader community. Unless otherwise approved by the Public Employment Office, assistance may only be provided by the employing organisation through services provided by the Workforce Management Centre.

Services of the Workforce Management Centre are available at no cost to budget sector organisations. Non-budget sector organisations are to access the services of the Workforce Management Centre on a fee for service basis. Workforce Management Centre services can be tailored to meet the counselling and training needs of individuals and organisations.

Where non-budget sector organisations are not at present accessing the services of the Workforce Management Centre, approval will need to be sought from the Commissioner for Public Employment to their alternative arrangements. The relevant unions should also be advised of the reasons for any approval. The standards of service should be no less than those available through the Workforce Management Centre. Any unresolved dispute between the relevant unions and the organisation concerning alternative arrangements should be referred to the Commissioner for Public Employment.

• access to stress management counselling;
• access to career transition, retraining opportunities and occupational information;
• advice on access to professional assessment to assist in determining vocational skills, aptitudes and interest;
• information on programs to upgrade existing skills or acquire new skills, including provision for payment of fees, training allowances, books and equipment;
• access to assistance with job search, resume preparation and interview skills before merit selection processes occur;
• access to assistance with job placement;
• access to assistance with trade/skill certification; and
• removal costs to gain employment.

These services are available to all voluntary redundancy employees. The services should be vocationally relevant and match with labour market demand. The Workforce Management Centre can provide further advice on the services available. Services can be tailored to meet special needs target groups eg remote area, specific occupational groups, racial, ethnic and ethno-religious minorities.

Taxation implications
Approved Schemes
Early retirement schemes provide appropriate taxation benefits to employees where they are eligible. Voluntary Redundancy can be considered by the Australian Taxation Office (ATO) to be part of an approved early retirement scheme in circumstances outlined in Section 27E of the Income Tax Assessment Act 1936 and Taxation Ruling TR 94/12.

Approval of the scheme by the Commissioner for Taxation is required, for taxation benefits to apply. This will ensure that those staff who accept voluntary redundancy receive the concessional taxation treatment similar to that which applies for retrenchments. Chief Executives should lodge applications direct with the ATO. The ATO is able to provide information about lodging an application.

There are three criteria which must be met before a voluntary redundancy scheme will qualify as an approved early retirement scheme. The scheme must be:

• offered to all employees within one of the categories specified in the Income Tax Assessment Act or within a class identified by the employer and accepted by the Commissioner of Taxation, and no other employee may participate in the scheme;
• entered into with a view to rationalising or reorganising the operations of the employer with an identified purpose in mind as specified in the Income Tax Assessment Act; and
• approved by the Commissioner of Taxation prior to its implementation.

As Chief Executives must provide detailed information with any application, it is necessary that organisations prepare individual submissions which should include the relevant data on the voluntary redundancy. Provided that the voluntary redundancy is being carried out in accordance with this policy on Managing Displaced Employees, the ATO will generally grant approval of the voluntary redundancy as an approved early retirement scheme.

Nevertheless, in each application submitted for approval the Chief Executive should supply all the following information:

• a statement that the voluntary redundancy scheme is being carried out in accordance with the policy on Managing Displaced Employees;
• an explanation of the purpose/reason for implementing the voluntary redundancy;
• where the voluntary redundancy is not offered throughout the entire organisation, the particular sections or branches in which the voluntary redundancy will operate;
• copy of an advice or information regarding the voluntary redundancy scheme given by the organisation to its employees;
• a statement confirming that the voluntary redundancy will be offered to all those employees who have been declared excess to the organisation's requirements (indicating whether the voluntary redundancy will operate either throughout the entire organisation or only in particular sections or branches);
• the period which the voluntary redundancy will be offered to the displaced employees;
• a statement detailing the voluntary redundancy payments;
• a statement confirming there is no agreement at the termination time between the employee and the organisation, or the organisation and another person, to employ the employee at a later date; and
• a statement confirming the payments to employees aged 65 years or over will not be treated as exempt from income tax.

Superannuation
Employees who have been paying into a superannuation scheme could have access to certain benefits if and when they leave public employment. The nature and size of the benefit will vary. Further advice may be obtained from the State Superannuation Advisory Service, telephone (02) 238 5666.

It should be noted that payments from the a superannuation scheme do not qualify as approved early retirement scheme payments and are not exempt from income tax and will be treated as ordinary eligible termination payments.