The Budget Committee of Cabinet has approved changes to the Voluntary Redundancy package to assist organisations with the management of employees displaced by restructures and other administrative priorities. This Memorandum outlines these changes and also new requirements for organisations. The decision has regard to the needs of the NSW public sector as a whole where the emphasis is on redeployment.

The payments under the Voluntary Redundancy package contained in Premier's Memorandum 96-5 "Managing Displaced Employees" are superseded by this Memorandum.

The change to the Voluntary Redundancy package increases the severance payment to 3 weeks per year of service to a maximum of 13 years (or 39 weeks). This increase, together with the additional payment of up to eight weeks' pay, has increased the maximum Voluntary Redundancy package under the "Managing Displaced Employees" policy from a total of 39 weeks to 52 weeks. The increase includes pro-rata payments for incomplete years of service on a quarterly basis.

In addition, while not part of the Voluntary Redundancy package, an option is now available to organisations, as appropriate, to assist employees who accept voluntary redundancy to look for work while still employed with the organisation by providing a period of up to 12 weeks job search leave. Attachment 1 gives more detailed information on Job Search Leave and the changes to the package.

Organisations undertaking major organisational change that will result in employees becoming displaced are now required to prepare a Management Plan on how they are to progress their voluntary redundancy program. Attachment 2 provides further information on this requirement. Organisations are no longer required to obtain the clearance of the Workforce Management Centre to make voluntary redundancy offers.

Funding arrangements for the Voluntary Redundancy package will continue to remain available if the restructure arises from a Government initiative, that is where the voluntary redundancies are associated with an on-going reduction in Budget support for the organisation.

These new arrangements become effective immediately. They apply to those who are currently employed by the organisation, including those employees who may have already accepted an offer of Voluntary Redundancy.

Further information or advice is available from the following staff of the Workforce Management Centre:

· David Clark, Manager, on telephone number (02) 9228 3531, or by email on [email protected]

· Christine Sultana, Senior Employee Support Officer on telephone number (02) 9228 3168, or by email on [email protected]

· Peter Donohue, Senior Employee Support Officer on telephone number (02) 9228 3269, or by email on [email protected]

Bob Carr
Premier

Issued By: Public Sector Management Office
Date: 2 October 1997
Contact: David Clark
Telephone No. (02) 9228 3531
Email: [email protected]

This memorandum supercedes M95-46 and VR package in M96-5, and has been superseded by M2008-08 Consolidated Policy On Managing Displaced Employees.

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Attachment 1

VOLUNTARY REDUNDANCY

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 3 weeks per year of continuous service with a maximum of 39 weeks, with pro-rata payments for incomplete years of service to be on a quarterly basis;

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 years' service : 2 weeks' pay
• 1 year and less than 2 years' service : 4 weeks' pay
• 2 years and less than 3 years' service : 6 weeks' pay
• 3 years' 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.

JOB ASSIST SCHEME

There have been no changes to the Job Assist Scheme. Employees who accept voluntary redundancy are still entitled to financial assistance of up to $5,000 in seeking alternative employment or additional knowledge and skills which are in demand in the broader community.

Employees who accept voluntary redundancy may, upon production of receipts, receive reimbursement of expenses associated with counselling, training and retraining services and compulsory books and equipment associated with courses of study. Up to $5,000 may be spent on fees and equipment. Full details of the Job Assist Scheme are contained in "Services for Displaced Employees - Guidelines" dated July 1996, copies of which may be obtained from the Workforce Management Centre, telephone (02) 9228 4766.

JOB SEARCH LEAVE

Job Search Leave is not part of the voluntary redundancy package. It is an option available to organisations, where appropriate, to assist those employees who have accepted an offer of voluntary redundancy to seek employment outside of the NSW public sector during their remaining period of employment with their organisation.

Up to 12 weeks paid leave may be offered to these employees and during this period the employee would continue to receive their normal pay while they actively sought employment outside of the NSW public sector.

Conditions applying to Job Search Leave

Job Search Leave is available only to employees who have accepted an offer of voluntary redundancy and the date of their separation from the organisation has been agreed in writing. It is a concession only available to those employees who are actively seeking alternative employment outside the NSW public sector. The following conditions apply:

• the period of Job Search Leave granted is up to 12 weeks and can only be taken in one block;
• the employee is still regarded as being in service and will continue to accrue annual leave and extended leave for the actual period of Job Search Leave taken;
• the leave is paid fortnightly, at the employees's substantive rate, excluding any overtime. Payment will not be made in advance;
• if the employee obtains and commences another job during the period of Job Search Leave, the employee should advise their organisation in writing and the period of leave will cease from the date the employee commences in the new job;
• once Job Search Leave has commenced, neither the organisation nor the employee can withdraw the offer or the acceptance of the voluntary redundancy;
• the employee, prior to proceedings on Job Search Leave, is to sign an undertaking which sets out the conditions applying to Job Search Leave, details and acceptance of the offer of voluntary redundancy, the last day of service and the commencement date of Job Search Leave.

Attached is a sample "undertaking" to be signed by an employee who has been granted Job Search Leave.

Calculation of Job Search Leave

Two dates are to be arranged and agreed between the staff member and the organisation. They are:

• the last day on the job; and
• the last day of service (the exit date)

The period between the two dates will be the period of Job Search Leave. The last day of Job Search Leave is the last day of service. There can be no gap between the two dates.

All separation payments will be made on the last day of service and not during the period of Job Search Leave.

Sample "undertaking" for signature by an employee proceeding on Job Search Leave

____________________________________________

VOLUNTARY REDUNDANCY OFFER

_____________________________________________

Surname: Given Name:

I have considered offer of Voluntary Redundancy

______________________________________________

I declare that:

• I wish to accept the Voluntary Redundancy offer and to voluntarily terminate my services with .
• I understand that if I obtain and commence another job during the period of job search leave, I will advise in writing and the period of leave will cease from the date that I commence the new job.
• I acknowledge that the commencement of Job Search Leave is on .
• I acknowledge that the last day of service with is on .
• I acknowledge that I have been offered < > payments by in respect of my proposed voluntary redundancy package plus < > pay in lieu of notice. A total of < > weeks
• If I am re-employed in the NSW Public Sector and if such re-employment occurs prior to the expiration of < > weeks (which does not include the < > weeks pay in lieu of notice) from the date of termination of my employment with , then I hereby undertake to reimburse to the an amount equivalent to the portion of the voluntary redundancy payments which relates to the portion of those < > which has not expired at the date of my re-employment.

Signature................................................................Date..................................

________________________________________________

Please return to:

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Attachment 2

MANAGEMENT PLAN FOR ORGANISATIONAL CHANGE PROGRAMS

Organisations undertaking major organisational change that will result in employees becoming displaced are required to prepare a Management Plan on how they are to progress their voluntary redundancy program.

Organisations are to consult with Premier's Department on the development of the Management Plan.

The Management Plan is to cover the following matters:

A workforce plan identifying:

• impact on services or functions;
• positions and classification subject to redundancy;
• locations relevant to such positions;
• any planned new positions identifying, where possible, the location;
• affects on EEO group profile.
• Any action required under Premier's Memorandum 97-5 "Rural Communities Impact Statement".
• A timetable for implementation.
• Employee and union consultation and planned information sessions.

An important resource in developing the organisation's Management Plan is the booklet produced by the Office of the Director of Equal Opportunity in Public Employment (ODEOPE) - Successful Restructuring - the People Aspects. This booklet provides organisations with guidelines and options for restructuring.