A new policy for the management of excess employees in the NSW Government Service will come into effect on 1 August 2011.

The policy will help NSW Government agencies manage their workforces more effectively to meet changing priorities and to deliver high quality, cost-effective services to the people of NSW.

The new arrangements give excess employees the choice of a generous voluntary redundancy package or the opportunity to seek redeployment.

The key features are:

• an end to the policy of no forced redundancies
• an immediate offer of voluntary redundancy to every employee who is declared excess
• retention of the current severance payments for voluntary redundancy
• a retention period of three calendar months for employees who do not accept the offer of voluntary redundancy
• a reduced severance payment for excess employees who decline the offer of voluntary redundancy and, subsequently, leave their employment during the retention period or are made redundant at the end of their retention period
• refocussed career transition assistance
• three months salary maintenance for excess employees redeployed to a position at a lower grade.

A detailed policy document is attached.

Incentivised voluntary redundancy offer for current excess employees

A one-off, incentivised voluntary redundancy offer will be made to all Government Service employees who are excess at today’s date. The offer includes a $10,000 cash incentive for current excess employees to exit the service, before the new policy for managing excess employees commences on 1 August 2011. The offer will be made regardless of any previous voluntary redundancy offers an excess employee has received. To qualify for this incentivised offer, excess employees must accept the offer and leave the service within one month of the offer.

The one-off, incentivised voluntary redundancy package comprises:

• four weeks notice or payment in lieu, plus
• for employees aged 45 years and over with five or more years of completed service, an additional one weeks notice or payment in lieu, plus
• a severance payment at the rate of three 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
• the benefit allowable as a contributor to a retirement fund, plus
• pro rata annual leave loading for leave accumulated at the date of termination, plus
• the following incentive payments, based on years of service:

plus,

• an additional $10,000 cash payment.

Job Assist payments and Job Search leave are not included in the offer.

The conditions of the offer are as follows:

• the incentivised offer of voluntary redundancy will be made once only to Government Service employees who are excess at today’s date
• if an excess employee does not accept the offer, they will be subject to the new excess employees policy when it comes into effect on 1 August 2011
• an excess employee who refuses the incentivised voluntary redundancy offer cannot be offered it again
• an excess employee who accepts the offer must leave the service within one month of the offer
• an employee who accepts the offer cannot be re-employed or re-engaged in any capacity in any NSW public sector agency without first repaying the relevant proportion of their severance pay. The repayment covers the relevant proportion of the severance payment (up to 39 weeks) and the incentive payment of up to eight weeks pay. An employee accepting the offer must sign an undertaking agreeing to this condition.

Agencies can apply to the NSW Treasury for reimbursement of some of the costs of the voluntary redundancy offer. Please refer to the relevant Treasury Circular for more details.

Transition to the new arrangements

The new policy for the management of excess employees In the Government Service will apply from 1 August 2011. All employees who are excess at this date, or become excess on or after this date, will be covered by the conditions of the new policy.

Coverage

This memorandum applies to all public sector agencies and employees in the Government Service (Public Service Departments, Non-Public Service Divisions and Special Employment Divisions). Agencies not covered include State Owned Corporations, the Health Service, the Teaching Service, the NSW Police Force (police officers), Fire and Rescue NSW (fire fighters), Railcorp, Sydney Ferries, the Country Rail Infrastructure Authority and the Transport Construction Authority.

Agencies not formally covered by the policy are encouraged to apply consistent provisions, subject to obligations under legislation and/or industrial instruments.

Barry O’Farrell MP
Premier

Issued: Department of Premier and Cabinet, Public Sector Workforce
Contact: Nigel Porter
Email: [email protected]
Telephone: (02) 9228 3222 Fax:  (02) 9228 4704