The purpose of this Memorandum is to update the policy on Managing Excess Employees following the settlement of the Crown Employees (Public Sector Salaries –2008) Award.

The Government’s commitment remains that redeployment is the principal means for managing excess employees. However, where an alternative position is not found after the 12 month retention period, as a last and unavoidable resort, an agency may make redundant an excess employee.

The attached policy contains important agreed areas of reform arising from the settlement of the Crown Employees (Public Sector Salaries –2008) Award matter, in particular:

• Use of one term, excess.
• That employees are declared excess when they no longer have a substantive position.
• That the 12 month retention period commences as soon as the employee is declared excess.
• An agreed test to allow agencies, as a last and unavoidable resort, to make redundant excess employees.
• That an excess employee can be made redundant if they refuse a reasonable redeployment opportunity or do not participate in the redeployment process in good faith.

Further consultation is taking place with Unions NSW and the Public Service Association to resolve two outstanding issues in relation to a revised voluntary redundancy scheme and “meaningful work” as it relates to the retention period. If the matters are unable to be resolved by negotiation, they will be referred back to the NSW Industrial Relations Commission for resolution.

The Public Sector Workforce Office will shortly be contacting agencies to attend a briefing session to support agencies in implementing the reforms.

Issues concerning the implications of redundancy payments on superannuation are still being resolved and supplementary advice will be provided on this issue.

The arrangements set out in this policy applies to all public sector agencies and employees in the Government Service (Public Service Departments, Non-Public Service Divisions and Special Employment Divisions) other than State Owned Corporations, the Teaching Service, the NSW Police Force (police officers), Railcorp, the Rail Infrastructure Corporation and Health Services.

Nathan Rees MP
Premier