Premier & Cabinet

Type:
Premier's Memorandum
Identifier:
M2016-02
Status:
Active

M2016-02-Transfer of Government Sector services or functions to the Non-Government Sector

Description

This Memorandum sets out a framework for dealing with the consequences for employees when government sector services or functions transfer to the non-government sector.   

Detailed Outline

Principles:

The principles underpinning this framework are:  

  • Maximise pathways for employees in the government and non-government sectors

  • Retain valued capability within the government sector where possible

  • Minimise unnecessary redundancy and external recruitment costs.

    References to the non-government sector includes: the private sector, and not for profit sector, and non-NSW government public sector agencies (e.g. public sector agencies of another jurisdiction and local government).

    Employees offered comparable employment in the Non-Government Sector:

    Where employees are offered comparable employment by the new operator, no redundancy payments will be made.

    Employment of NSW government sector employees by the new operator is comparable employment where all of the following criteria are met:

  • the person’s prior service in the government sector is recognised for the purposes of the new employment, and

  • the work to be performed by the person under the new employment is similar to the work performed by the person under the former employment, and

  • the terms of any industrial instrument or agreement (however described) applying to the new employment are substantially similar to, and (when considered on an overall basis) no less favourable than, the terms of any government sector industrial instrument that applied to the former employment, and

  • the new employment does not involve an unreasonable increase in the person’s journey to work.

    In a situation where there are fewer positions available with the new operator than the number of employees, there may be a specific selection process undertaken such as an Expression of Interest or similar.

If an employee has not applied to be considered for a position with the new operator, where comparable employment is available and notified to the employee, no redundancy payments will be paid to that employee.

Placement Strategy for employees who are not offered comparable employment by the new operator:

Agencies should adopt the approach outlined in the attached NSW Government Sector Placement Strategy for affected employees who are not subject to transfer arrangements.

This is a proactive whole-of-government approach to maximise opportunities for continued employment in the sector for employees who are not subject to transfer to a new operator. Its key characteristic is to use predictive workforce planning to identify future recruitment needs based on past trends and future needs. Employees are matched to new roles in their own or another agency based on their experience and demonstrated capabilities.  Employees are released to take up those new roles at an agreed time when the transfer of functions is occurring.

The Placement Strategy is to be activated before the application of the Managing Excess Employees Policy, or similar policy, ideally well ahead of the time when the transfer of function occurs. The Placement Strategy does not replace the Managing Excess Employees Policy, which operates in all other circumstances of organisational change and will apply where efforts to find placements under the Placement Strategy are unsuccessful.

No redundancy is payable where comparable employment in the NSW government sector is offered, but not accepted.

Overview

Who needs to know and/or comply with this?

Departments
Executive agencies related to Departments
Separate agencies
Statutory Authorities/Bodies

Compliance

Not Mandatory

AR Details

Date Issued
Jun 17, 2016
Review Date
Feb 28, 2027
Replaces
Replaced By

Contacts

Contact
Contact us
Phone
02 9228 5555
Publishing Entity
Department of Premier and Cabinet
Issuing Entity
Premier