CHANGE MANAGEMENT CHECKLIST · 2014-12-29 · Agency Support Division - 1. Organisational change...

Agency Support Division - www.psc.wa.gov.au

Foreword

The Redeployment and Redundancy Policy Manual is issued by the Agency Support Division of the Public Sector Commission to assist public sector agencies in managing structural reform initiatives.

The Agency Support Division is responsible for the overall management of the Government’s redeployment and redundancy program. The Redeployment and Redundancy Policy Manual, and other supporting documentation, are designed to assist and guide agencies in the planning and implementation of major structural change.

The Redeployment and Redundancy Policy Manual ensures that consistent and accurate information is provided to managers and employees alike. It provides contemporary information on organisational change management principles and practices and the legislation, policies, processes and available support services relating to redeployment and redundancy activity.

The current policy manual can be accessed online at the Public Sector Commission website.

Contact should be made with the Agency Support Division, for all enquiries in relation

to this Manual. Please telephone 9219 6202 or 9219 6238.

M C Wauchope

PUBLIC SECTOR COMMISSIONER

http://www.publicsector.wa.gov.au/Services/EmployingPeople/Pages/Redeployment.aspx

Contents

1. Organisational change management principles, guidelines and resources ...................... 5

1.1 Organisational Change Guidelines & Organisation Principles ......................................... 5

1.2 Consultation when Introducing Change ........................................................................... 5

1.3 Consultation regarding Redundancy. ............................................................................... 6

1.4 Notice of Redundancy ...................................................................................................... 6

1.5 The Individual and Redeployment .................................................................................... 7

1.6 Stages of Change ............................................................................................................. 8

1.7 Employees Role in Coping with Change .......................................................................... 9

1.8 Managing Change to Achieve Your Goals ..................................................................... 10

1.9 Resources and Contacts ................................................................................................ 11

2. Legislation, Awards, Orders, Standards and Circulars ...................................................... 12

2.1 Public Sector Management Act 1994 Part 6. ........................................................................ 12

2.2 Public Sector Management (Redeployment and Redundancy) Regulations 1994. ......... 12

2.3 Western Australian Government/Liquor, Hospitality and Miscellaneous Union

Redeployment, Retraining and Redundancy Certified Agreement 2004. ......................... 12

2.4 Public Sector Standards in Human Resource Management .............................................. 13

2.5 Termination, Change and Redundancy General Order ...................................................... 13

2.6 Relevant Circulars .................................................................................................................. 13

3. Redeployment and redundancy policy position, roles and responsibilities .................... 14

3.1 Redeployment and Redundancy Policy Position ................................................................ 14

3.2 Redeployment Approaches ................................................................................................... 14

3.3 Recruitment Advertising Management System (RAMS) ..................................................... 14

3.4 Role and Responsibilities of the Agency Support Division of the Public Sector

Commission ............................................................................................................................ 15

3.5 Role and Responsibilities of Agencies and SSCs .............................................................. 16

3.6 Role and Responsibilities of Employees ............................................................................. 17

4. Redeployment management .................................................................................................. 18

4.1 Government Position Statement ........................................................................................... 18

4.2 Key Redeployment Management Processes ....................................................................... 18

4.3 Redeployment Flowchart ....................................................................................................... 19

4.4 Pre-Registration Process ....................................................................................................... 20

4.4.1 Position Abolished ....................................................................................................... 20

4.4.2 Priority for Transfer to a Position in Home Department .............................................. 20

4.4.3 Interview with Agency/SSC Case Manager ................................................................ 20

4.4.4 Support Services ......................................................................................................... 20


4.4.5 Voluntary Severance ................................................................................................... 20

4.4.6 Interim Work Placement .............................................................................................. 20

4.5 Registration as a Registered Employee ............................................................................... 20

4.5.1 RAMS .......................................................................................................................... 20

4.5.2 Performance and Suitability Assessment .................................................................... 21

4.5.3 Redeployment Acceptance ......................................................................................... 21

4.6 Identification and Referral to Suitable Job Opportunities .................................................. 21

4.6.1 Access to Job Placement Opportunities ..................................................................... 21

4.6.2 Appropriate Matching .................................................................................................. 21

4.6.3 Redeployee Responsibilities ....................................................................................... 21

4.6.4 Referral Actions ........................................................................................................... 22

4.6.5 Competitive Approaches ............................................................................................. 22

4.7 Suitability Assessment .......................................................................................................... 22

4.7.1 Interview Held Between Advertising Agency and Redeployee ................................... 22

4.7.2 Assessment Criteria .................................................................................................... 22

4.7.3 Interview Style ............................................................................................................. 22

4.7.4 Uncertainties on Redeployees Suitability .................................................................... 22

4.7.5 Outcome Report .......................................................................................................... 23

4.7.6 Formal Offer when Suitability Confirmed .................................................................... 23

4.7.7 Employment Type when Suitability Confirmed ............................................................ 23

4.7.8 Process when Non-Suitability Confirmed .................................................................... 24

4.7.9 ASD Redeployment Review Panel Process ................................................................ 24

4.8 Significant Redeployment Policy Applications ................................................................... 24

4.8.1 Suitable Employment and the Consequence of Refusing Suitable Employment ....... 25

4.8.2 Acceptance of Fixed Term Contracts by Registered Employees ................................ 25

4.8.3 Registration of Surplus Employee ............................................................................... 25

4.8.4 Classification Maintenance .......................................................................................... 27

4.8.5 Pay Maintenance ......................................................................................................... 27

4.8.6 Leave Entitlements ...................................................................................................... 28

4.8.7 Relocation Entitlements ............................................................................................... 29

4.8.8 Retraining .................................................................................................................... 29

4.8.9 Trial Placements .......................................................................................................... 30

4.8.10 Application of 80 – 110% Provisions ....................................................................... 31

4.8.11 Process for Filling Reclassified Positions ............................................................... 33

4.8.12 Exemption to Refer Vacancies ................................................................................ 33

4.8.13 Pool Recruitment ..................................................................................................... 34

4.8.14 Resubmission of Cleared, Non Advertised Vacancies ........................................... 35

4.8.15 SES Officers ............................................................................................................ 35

4.8.16 Vacancy defined ...................................................................................................... 35

5. Voluntary severance ............................................................................................................... 36

5.1 Legislative Framework ........................................................................................................... 36

5.2 Overview of Severance Policy ............................................................................................... 36

5.3 Voluntary Severance Approval Procedures ........................................................................ 37

5.4 Standard Voluntary Severance Payment ............................................................................. 38

5.5 Voluntary Severance - Rate of Pay Applicable when Higher Duties Involved ................. 38

5.6 Voluntary Severance - Substituted Severance Arrangements .......................................... 38

5.7 Payment in Lieu of Notice of Redundancy........................................................................... 39

5.8 Voluntary Severance Offer .................................................................................................... 43

5.9 Letter of Severance ................................................................................................................ 43

5.10 Conditions of Re-Employment .............................................................................................. 43

5.11 Severance Payment Refund Calculation .............................................................................. 44

5.12 Rates of Pay for Part Time Service ....................................................................................... 45

5.13 Taxation and Superannuation Implications ......................................................................... 46

5.14 Notification to Centrelink ....................................................................................................... 47

6. Career transition services ..................................................................................................... 48

6.1 Accessing the Career Transition Courses ........................................................................... 48

6.2 The Need for Proactivity ........................................................................................................ 48

6.3 Outplacement Services – Common Use Contract ............................................................... 49

7. Presentation material and fact sheets ......................................................... 50

7.1 Redeployment and Redundancy Fact Sheets ..................................................................... 50

7.2 Redeployment and Redundancy Presentation Material ..................................................... 50


1. Organisational change management principles, guidelines and resources

1.1 Organisational Change Guidelines & Organisation Principles

“A Guide to Organisational Change Management” is available to assist

agencies in managing structural change within their portfolios. The guidelines

complement the advisory and consultancy service offered by the Agency

Support Division. They include a set of reorganisation principles that underpin

change management processes to assist and guide public sector employers in

the implementation of major structural changes.

1.2 Consultation when Introducing Change

A Termination, Change and Redundancy General Order was issued by the

Western Australian Industrial Relations Commission in June 2005. This Order

requires employers to notify and consult with employees when decisions are

made to introduce change.

At the time employers decide to introduce changes in the workplace that are

likely to have significant effects on employees, they are required to notify all

affected employees, and where requested, the union nominated by the

employee.

As soon as practicable after making a decision to introduce change, employers

are also required to consult with and provide in writing to the affected

employees, and where nominated their union, all relevant information about the

changes including:

the nature of the changes being introduced;

the expected effects of the changes on employees;

the timing when, or period over which, the changes will occur; and

the ways to avoid or minimise the effects of the changes on employees.

However, employers are not required to disclose any confidential information

that the employer considers would be contrary to the interests of the

organisation to disclose.

http://www.publicsector.wa.gov.au/SiteCollectionDocuments/Machinery%20of%20Government%20-%20Guide%20to%20Organisational%20Change%20Management.pdf

1.3 Consultation regarding Redundancy.

Regulation 4AA of the Public Sector Management (Redeployment and

Redundancy) Regulations 1994 requires public sector employers to notify and

consult with their employees regarding redundancies.

As soon as is practicable after the employer determines that an employee’s

position is to be abolished and the employee may become surplus to the

organisation’s requirements, the employer is required to consult with and

provide in writing to all affected employees, and where requested the union

nominated by the employee, all relevant information about the determination

including:

the reasons why the position is to be abolished and why the employee

may become surplus to the organisation’s requirements;

measures that could be taken to avoid the employee becoming surplus

to requirements;

the period within which the employee may become surplus; and

the number and employment types of other employees affected.

However, employers are not required to disclose any confidential information

that the employer considers would be contrary to the interests of the

organisation to disclose.

1.4 Notice of Redundancy

Regulation 4A of the Public Sector Management (Redeployment and

Redundancy) Regulations 1994 requires public sector employers to provide

employees with at least 12 weeks written notice of redundancy, where the

employee’s position is to be abolished and where the employee will become

surplus to requirements. The written notice of redundancy must confirm the

following:

their office, post or position is to be abolished; and

they will become surplus to agency requirements.

In the absence of providing the above notice, and where the employee receives

and accepts an offer of voluntary severance, a payment in lieu of notice

applies. Refer 5.7.


1.5 The Individual and Redeployment

Improvements to service delivery and structural reform continue to impact on

the size and shape of the public sector. While there is a commitment to “no loss

of employment”, the roles undertaken by public sector employees are likely to

change through workplace reform initiatives. Many employees will have to face

the reality of making significant career decisions and adjustments.

People involved in the management of staff affected by organisational change

need to be aware that coping with change means different things to different

people. During the change process employees will experience a broad range of

feelings from anger and fear to enthusiasm and excitement at the new

prospects change offers.

Assisting employees through this period of uncertainty is a very important part

of managerial responsibilities.

The role of case managers or other people involved at various levels of

intervention with redeployment can be extremely demanding, both in terms of

providing practical help and resources, and in dealing with the emotional issues

that arise with job displacement.

It has been said that often the emotional response to employment displacement

is similar to the feelings experienced during the grieving process.

At first people will deny it’s happening. They will shut out reality and isolate

themselves. Then will come anger. Next they will try to bargain. Then finally

comes acceptance and hope for the changed future and choices that lie

ahead.

The emotional stages people often go through in coping with change are shown

diagrammatically on the following page.

1.6 Stages of Change

People involved in organisational change tend to go through a series of stages.

These are set out below. The typical signs of each stage are described as well

as actions an individual can take to improve their capacity to cope.

ADAPTION

Signs

Focus on survival, low risk taking and creativity.

Uncertainty as to how to proceed, willingness to learn.

Passive acceptance, begin to make changes in the

work place.

Opportunity,

Growth and

New

Directions

DENIAL

Signs

Refusal to believe the change is

taking place. Confusion, apathy,

sense of loss, nostalgia for "the

way it was". Changes seen as

having no value. Low morale.

RESISTANCE

Signs

Depression, anxiety,

frustration, anger, blaming,

conflict. Negative attitude,

refusal to cooperate, direct

opposition.

INVOLVEMENT

Signs

Openness and commitment.

Conflict between

organisational and personal

goals resolved. Clear about

future, takes initiative.

Changes seen as a challenge

and opportunity for

improvement.


1.7 Employees Role in Coping with Change

Employees should be encouraged to take some time to think about where they

are now. The following actions will focus individuals on what they can do to

move forward.

Possible Action - DENIAL

Seek accurate information find out what to expect. Consider implications,

discuss and confront irrational fears and doubts. Actively examine situation

for positive aspects.

Possible Action - RESISTANCE

Express feelings and recognise both good and bad things of past. Attempt

to understand the rationale behind changes. Seek involvement/input into

decisions.

Possible Action - ADAPTION

Confront feeling of powerlessness and seek support and advice. Clarify new

roles and resolve conflicts. Set short term, achievable goals. Measure

progress and reward self.

Possible Action - INVOLVEMENT

Accept the reality and use initiative and take informed risks. Assess own

strengths and weaknesses. Develop personal and other resources. Set

long-term goals. Measure and celebrate success.

A handout similar to the following could be provided to employees to assist

them in taking positive steps to deal with change management.

1.8 Managing Change to Achieve Your Goals

Possible loss of job Financial commitments Dissatisfaction with job Other considerations.

Continued employment Part time work Self employment Retirement Financial pay outs Abilities aptitude Self esteem.

Qualifications Experience Transferable skills Family support Retraining.

Knowledge of job market Job search skills Appropriate job applications

skills Trial job placements.

= Achievement of

personal goals

A detailed action plan with clear first steps

+

Personal and other resources

for change

+

A clear idea of what you would like to achieve

+

Pressure from the situation for

change

+


1.9 Resources and Contacts

Agency Support Division – Telephone 9219 6200

The Agency Support Division is committed to assisting public sector agencies

in managing reform processes and is able to assist through the provision of

expert advice on all matters relating to this area.

The Agency Support Division is located on the 23rd floor, Governor Stirling

Tower, 197 St Georges Terrace Perth and is available to support public sector

organisations in achieving their restructuring goals.

Early involvement and consultation with the Workforce Management Branch

has proven to be beneficial in facilitating staff reductions, contracting and

restructuring activities within agencies both from a management and employee

perspective.

Agency Support staff are available to provide support and advice on all aspects

of the Government's redeployment and redundancy legislation, policy and

procedures as well as the career transition services available to support

individuals.

External

Assistance in managing surplus staff can also be obtained from private sector

outplacement providers. The Department of Treasury and Finance manages a

common use contract for the provision of Human Resource Services (CUA

39104) which includes a list of accredited outplacement providers.

http://infopage.gem.wa.gov.au/docs/CUA_Information_39104.htm


2. Legislation, Awards, Orders, Standards and Circulars

The Western Australian Government redeployment and redundancy system is

covered industrially by the following legislation:

2.1 Public Sector Management Act 1994 Part 6.

http://www.slp.wa.gov.au/legislation/statutes.nsf/main_mrtitle_771_homepage.html

2.2 Public Sector Management (Redeployment and Redundancy)

Regulations 1994.


The above legislation applies to all employees covered by the Public Sector

Management Act 1994, except for those excluded under the provisions of

Regulation 4 (1), which includes employees who are employed on a contract of

employment that has a fixed term and who are not permanent officers.

Employees from entities listed in Schedule 1 of the Public Sector Management

Act 1994, are ineligible for redeployment/ voluntary severance under these

Regulations.

This legislation does not apply to a relatively small group of employees covered

by the Public Sector Management Act 1994, for whom redeployment and

redundancy provisions are included in federal awards or industrial agreements.

One of the more significant federal awards covers Government employees who

are eligible to be covered industrially by the Liquor, Hospitality and

Miscellaneous Union (LHMU). This Agreement is often referred to as the “RRR”

Agreement but is correctly titled:

2.3 Western Australian Government/Liquor, Hospitality and

Miscellaneous Union Redeployment, Retraining and

Redundancy Certified Agreement 2004.

The intent of the above Agreement was to reinstate, to eligible State

Government employees, the provisions and benefits previously provided by

what was known as “the General Order”. In the main the General Order was

superseded by the Public Sector Management Act 1994 and accompanying

Regulations, on the proclamation of this legislation in October 1994.




2.4 Public Sector Standards in Human Resource Management

The public sector Redeployment Standard places certain requirements and

expectations on employers in the way they treat and manage surplus staff.

Although the principles are relevant, once a surplus employee has been

registered for redeployment the Redeployment Standard does not apply.

The public sector Termination Standard also places requirements on employers

for the process used to reach cessation of employment decisions. Both of these

standards are available on the Public Sector Commission website.

2.5 Termination, Change and Redundancy General Order

In June 2005 the Western Australian Industrial Relations Commission issued a

Termination, Change and Redundancy General Order which provides

entitlements to all employees dismissed other than for reasons of misconduct.

This Order took effect from 1 August 2005 and Cabinet endorsed the flow on of

any superior provisions to public sector employees.

Amongst other things this Order places:

obligations on employers to consult with employees (and when nominated

their Union) on decisions to introduce significant change and regarding

redundancies. Refer 1.3.

obligations on employers to notify Centrelink of redundancies. Refer 5.14.

A copy of this order can be found at:

http://www.wairc.wa.gov.au/index.cfm?objectId=C2594CB4-C5C5-4436-

0C73AFBC119F2FC4 (Search under General Orders).

2.6 Relevant Circulars

Government circulars that have relevance to redeployment and redundancy

matters, are available on the Public Sector Commission website and also the

Department of Commerce website:

PSC Circular 2009-28

- Redeployment And Voluntary Severance Policy

Circular to departments and authorities no. 7 of 1992

- Workers' Compensation claims - effect on employees seeking voluntary

severance.

Circular to departments and authorities no.19 of 1986

- policy on subsidised housing for redeployees.

http://www.publicsector.wa.gov.au/Services/EmployingPeople/Recruitment/Pages/Recruitment.aspx

http://www.wairc.wa.gov.au/index.cfm?objectId=C2594CB4-C5C5-4436-0C73AFBC119F2FC4


http://www.publicsector.wa.gov.au/AgencyResponsibilities/PSCCirculars/Lists/Circular/Attachments/272/2009-28%20Redeployment%20and%20Voluntary%20Severance%20Policy.pdf

http://www.commerce.wa.gov.au/LabourRelations/PDF/Circulars/07_92.pdf

http://www.commerce.wa.gov.au/LabourRelations/PDF/Circulars/19_86.pdf

3. Redeployment and redundancy policy position, roles and responsibilities

3.1 Redeployment and Redundancy Policy Position

Government policies continue to embrace the concept of security in

employment. While jobs over time may cease to exist or be significantly altered,

redeployment, retraining, and voluntary severance strategies remain as the

preferred approaches in the management of permanent employees displaced

by organisational change.

3.2 Redeployment Approaches

Cabinet endorsed processes assist the matching of surplus employees to

vacant positions, and maintain the integrity of the redeployment system. These

approaches:

require public sector employers to ensure that all future surplus employees

are both employable and job ready prior to being registered for

redeployment. Performance assessments are required to be provided at the

time of registration and only those employees with positive assessments will

be registered;

involve ongoing reviews being undertaken by the Agency Support Division

of all registered redeployees to determine their redeployment prospects.

Redeployees assessed as having insufficient skills or employment

prospects will be placed internally within their employing department; and

employ a number of interventionist strategies to accommodate registered

employees including the ability to apply regulatory powers to direct public

sector employers to make employment offers to surplus employees and to

direct surplus employees to accept offers of suitable employment.

3.3 Recruitment Advertising Management System (RAMS)

Pivotal to the operation of the current redeployment model is RAMS. This is an

internet database system designed to streamline administrative processes and

facilitate the case management of surplus employees.

The RAMS system includes online User Manuals and Tutorials covering system

applications and processes for redeployment and voluntary severance.


3.4 Role and Responsibilities of the Agency Support Division of the

Public Sector Commission

The Agency Support Division of the Public Sector Commission has delegated

responsibilities under the redeployment and redundancy provisions of the

Public Sector Management Act 1994, for the efficient and effective

management of the Government’s redeployment framework.

The Agency Support Division provides a lead role in the management of

redeployment. It oversees the redeployment process and applies the

legislation, regulations and policies sensitively and with due regard for the

Government’s reform agenda, agency operational requirements and individual

circumstances. Specifically the Agency Support Division will:

maintain an equitable and effective whole of Government framework to

enable agencies and/or shared corporate service centres ( SSCs ) to

achieve redeployment outcomes and effectively manage their surplus staff;

develop and implement redeployment policies and procedures;

review and interpret legislation and regulations;

provide strategic advice and assistance to Government and agencies/

SSCs;

provide electronic access to job vacancies, registration of redeployees and

voluntary severance through the RAMS system;

provide mediation services where agencies/SSC’s are unable to reach

agreement on the suitability of a registered redeployee;

maintain a central redeployment and redundancy database for reporting

purposes, and

provide statistical and other reporting on redeployment and redundancy

management activities.

The Agency Support Division may provide centralised case management

services to agencies/SSCs, and their registered redeployees which result from

a significant Government reform initiative, such as the Shared Corporate

Services Initiative. Case management services will include:

assisting redeployees to identify alternative job placement opportunities;

managing the job matching and referral process for redeployees;

assessing validity of job placement referral reports and negotiating

placement outcomes;

assessing and recommending provision of career transition training,

counselling, and other support services to redeployees employing authority.

providing information on relevant legislation and policies, redeployment

options.

Outside of significant Government reform initiatives, public sector

agencies/SSC’s will retain responsibility for the case management of their

employees. (see 3.5)

3.5 Role and Responsibilities of Agencies and SSCs

Government policies require employing agencies to retain responsibility and

accountability for the management of any employee affected by changing work

situations.

As a first priority placement opportunities within the organisation should be

actively sought for any surplus employee. Only where this is not possible,

should employees be registered for external redeployment.

Agencies/SSCs are responsible for providing surplus employees with suitable

interim work arrangements and providing professional support pending their

redeployment.

Registered employees must be treated with empathy and provided every

assistance to ensure they are fully informed of their redeployment, retraining

and redundancy rights, entitlements and obligations.

The need for agencies/SSC’s to provide career transitional support, including

ongoing professional development opportunities, for registered redeployees

located in regional areas is of particular importance.

Agencies/SSC’s have a legal obligation to adhere to legislative and policy

requirements and any decisions made by the Agency Support Division.

There is a requirement on agencies/SSC’s to post any vacancy greater than 6

months (total) duration on RAMS and ensure that any redeployee referred is

given every consideration and opportunity to be redeployed into the position.

The “6 months” includes instances of lesser periods which, in total, exceed 6

months (see also 4.8.12).

For general organisational restructuring activity, agencies/SSC’s are required to

provide case management and support services for their surplus employees

including:

initialising registration of employees for redeployment;

assisting employees to identify alternative job placement opportunities;

managing the job matching and referral process for their redeployees;

providing employees with access to information on career transition options

and entitlements;


providing employees with access to appropriate counselling and other

support services;

identifying and providing suitable interim work throughout the change

process;

payment of salaries/wages until redeployed;

supporting appropriate retraining and development opportunities;

preparing business case submissions for voluntary severance.

SSC’s will provide initial mediation services where agencies cannot reach

agreement on the suitability of redeployees.

3.6 Role and Responsibilities of Employees

Government policies require public sector employees to acknowledge and be

responsive in adapting to the need for continual improvements in service

delivery.

As services change to remain relevant, efficient, and effective, there will

inevitably be changes to associated work practices and service delivery that will

impact on the structure of existing jobs. Therefore employees need to be:

aware that continued improvements will result in changes to work practices

and existing employment arrangements;

flexible and responsive to changing work situations;

cooperative with services offered to assist their career transition efforts

including attendance at job readiness training and presenting positively and

professionally at job placement interviews;

willing to consider all available options including, internal transfer, trial work

placements, external redeployment, transition to private sector employment,

voluntary severance, and retraining; and

aware of their legal obligation to adhere to the requirements of the

legislation and any decisions made by the Agency Support Division.

Registered employees are required to take responsibility for their own career

management and actively pursue alternative employment opportunities. When

referred for positions, there is an expectation that registered employees will

prepare for the interview, familiarise themselves with the role and function of

the agency and present in a positive and professional manner.

4. Redeployment management

4.1 Government Position Statement

In PSC Circular 2009-28 (available on the Public Sector Commission website),

the Premier confirmed that the effective management of surplus staff was a

priority of the Government.

Agencies have a number of strategies available to them to manage their

surplus staff including redeployment and voluntary severance. Redeployment

continues as the priority application for the management of surplus permanent

public sector employees. Voluntary severance is only offered in circumstances

when redeployment options have been explored and a good business case

justifies its application.

Current redeployment approaches involve the application of interventionist

strategies and are subject to close scrutiny to maintain the integrity of

Government’s redeployment framework and the achievement of required

outcomes.

4.2 Key Redeployment Management Processes

A diagrammatic illustration of the redeployment process together with a

summary of the key redeployment process elements are provided as follows.

http://www.publicsector.wa.gov.au/AgencyResponsibilities/PSCCirculars/Lists/Circular/Attachments/272/2009-28%20Redeployment%20and%20Voluntary%20Severance%20Policy.pdf


4.3 Redeployment Flowchart

Position abolished or surplus to agency requirement

Employee is unable to be transferred to another position in home agency

Agency/SSCs arranges interim work placement

Redeployee is externally registered for redeployment

Interview with case manager Identification of appropriate Career Transition Courses for retraining if required

Case manager and redeployee begin to identify suitable alternative job opportunities RAMS provides 3 days to place a “hold” on posted jobs, and 2 days to refer suitable redeployees

When a suitable job match is found, interview is held between advertising agency and the redeployee

Advertising agency assesses redeployee to be

unsuitable for position

Advertising agency assess redeployee to be

suitable for position

Feedback provided to case manager and redeployee within 14 days of referral

Not recommended for placement Recommended for placement

Accept non-suitability findings

Disagree with findings

Negotiate placement options

Review Panel Referral

Advertising agency employs redeployee in vacant position on permanent, temporary or

trial basis

Temporary / Trial placement ends

Permanently placed

Name removed from redeployment register

Resume Job Search

Registered employees are allowed special leave to attend interviews and career counselling. Where there is a cost involved in attending interviews, this will be paid for by the home agency.

4.4 Pre-Registration Process

4.4.1 Position Abolished

This occurs when an individual’s job within an agency is abolished as a

result of organisational change. It is the position that is made redundant,

and not the person.

4.4.2 Priority for Transfer to a Position in Home Department

When a position is abolished, the agency should as a first priority

transfer the surplus officer internally into an alternative position. When

this is not possible, the occupant of the position is considered to be

surplus and external redeployment and redundancy management

options are considered.

4.4.3 Interview with Agency/SSC Case Manager

Surplus employees must be advised of their redeployment options, the

redeployment process, available support services and their roles and

responsibilities.

4.4.4 Support Services

As far as practicable and dependent on individual and agency needs,

support should be given to surplus employees in the form of personal,

financial and career transition advisory and support services.

4.4.5 Voluntary Severance

It is at this point a surplus employee may be offered voluntary severance

subject to necessary approvals. There are no obligations on the

employing agency to offer voluntary severance or, on any surplus

employee to accept voluntary severance when offered.

4.4.6 Interim Work Placement

Agencies continue to be responsible for the management of their surplus

employees and are responsible for providing employees with work and

ongoing support until redeployment outcomes are achieved.

4.5 Registration as a Registered Employee

4.5.1 RAMS

Agency/SSC case managers initiate the registration of surplus

employees for external redeployment by completing the registration

template on RAMS.


4.5.2 Performance and Suitability Assessment

RAMS requires referring agencies to provide a statement of the reasons

that led to the individual becoming surplus, of efforts made to

accommodate the employee internally, together with performance and

employability assessments.

4.5.3 Redeployment Acceptance

All requests to register surplus employees for external redeployment

need to meet the eligibility requirements under Regulation 4 and

Regulation 11 of the Public Sector Management (Redeployment and

Redundancy) Regulations 1994.

The Agency Support Division will confirm the acceptance or non-

acceptance of the registration of surplus employees for external

redeployment.

4.6 Identification and Referral to Suitable Job Opportunities

4.6.1 Access to Job Placement Opportunities

RAMS provides case managers with daily access to public sector job

opportunities. Case managers have up to three (3) working days to

consider the suitability of their redeployees and place a “hold” on a

posted vacancy. From the end of the 3 day “hold” period case managers

have a further two (2) day period in which to refer any suitable

redeployees to a job.

Note: The Agency Support Division monitors the daily vacancy listing to

ensure that advertising agencies do not post positions that could provide

suitable placements for any of their registered employees.

4.6.2 Appropriate Matching

Case managers will only consider the referral of a redeployee when an

appropriate match exists between the redeployees employment

experience, skills, qualifications and level with the posted position.

4.6.3 Redeployee Responsibilities

Redeployees need to be aware that they should be actively seeking

suitable employment opportunities throughout their period of

redeployment.

4.6.4 Referral Actions

Where it is identified that a redeployee is suited to a particular vacancy,

the case manager places a “Referral” on RAMS and submits the

redeployees résumé and a covering letter for the consideration of the

advertising agency.

4.6.5 Competitive Approaches

As more than one redeployee may be put forward for interview, it is

important redeployees ensure their interview skills are well developed

and that they approach interviews competitively.

4.7 Suitability Assessment

4.7.1 Interview Held Between Advertising Agency and Redeployee

To assess their suitability for placement in a position an interview is held

with representatives from the advertising agency. Interview processes

should focus on finding reasons for accepting redeployees as opposed

to reasons for their non-suitability.

4.7.2 Assessment Criteria

The assessment for suitability for placement in the position is to be

based solely upon the criterion “Can the person(s) fulfil the requirements

of the job within a reasonable period of time?” Essential selection criteria

are therefore not to be rigidly applied except where they are of a specific

nature that would normally preclude a right to practice.

4.7.3 Interview Style

The use of a formal selection interview is considered to be inappropriate

in these circumstances. A less formal interview should be structured

around the requirements of the job to elicit sufficient information for

assessing the redeployees suitability.

4.7.4 Uncertainties on Redeployees Suitability

Where uncertainty exists as to the ability of the redeployee to undertake

the requirements of the position within a reasonable period of time, it is

expected that the redeployee will be given the opportunity to “try out” in

the position on a retraining basis to enable a better assessment of their

claims for appointment.


4.7.5 Outcome Report

A formal report on discussion outcomes should be returned to the

referring case manager within 14 days of the date on the referral letter.

The report will need to provide sufficiently detailed information to

demonstrate how the claims of the redeployee have been assessed in

relation to job requirements, along with a decision on suitability.

Redeployees will have access to those parts of the report that relate to

them.

4.7.6 Formal Offer when Suitability Confirmed

Where assessment outcomes confirm the suitability of a redeployee for

appointment, agencies are reminded of the provisions of Regulation 13

(1) of the Public Sector Management (Redeployment and Redundancy)

Regulations 1994 which require you to provide in writing, an offer of

employment to the employee concerned. The offer needs to set out the

terms and conditions (including pay details) subject to which the offer is

being made.

4.7.7 Employment Type when Suitability Confirmed

The advertising agency will employ the redeployee on a permanent,

temporary or trial basis depending on the nature of the position and the

redeployees relevant experience. Redeployees placed into trial

placements or, into temporary positions that render them unavailable for

consideration for placement in other positions, will be removed from the

active redeployment register.

At the expiry of the temporary or trial period, the agency may offer the

redeployee a position, or refer them back to their employing agency for

reinstatement on the active redeployee register. During trial placements

formal progress performance reports must be provided by the host

agency to the redeployees case manager. Also see 4.9.9

4.7.8 Process when Non-Suitability Confirmed

When an interview report finds a redeployee to be unsuited to the

position, the case manager, after consultation with the redeployee, can

accept the report and update RAMS. In this event, the case manager will

resume the redeployment search and continue to identify suitable

vacancies in consultation with the redeployee.

Alternatively, the case manager may choose not to accept the report and

attempt to reach agreement on the suitability of the redeployee or

agreement on a trial placement.

Following exhaustive efforts and only where the parties cannot reach

agreement on the placement outcome, the matter may be referred to the

Agency Support Division Redeployment Review Panel administered by

the Public Sector Commission.

4.7.9 ASD Redeployment Review Panel Process

Documentation to be forwarded to the Review Panel would include a

copy of the interview report and details of placement negotiation efforts

and outcomes. The documentation is to be forwarded to the Senior

Policy Officer, Agency Support Division, Public Sector Commission, 23rd

Floor, 197 St Georges Terrace, Perth WA 6000.

The Panel will arrange to meet separately with both the applicant and

their case manager if required, and representative(s) from the

advertising agency to consider the merits of their submissions. The

Panel may recommend that an agency be directed to offer employment

to a redeployee.

4.8 Significant Redeployment Policy Applications

Below are key policy areas that impact on the management of

redeployment.


4.8.1 Suitable Employment and the Consequence of Refusing Suitable Employment

Definitions on what represents suitable employment are given in Part 6

of the Public Sector Management Act 1994 and Regulation 3 of the

Public Sector Management (Redeployment and Redundancy)

Regulations 1994.

Registered employees are required under Regulation 13(1) of the Public

Sector Management (Redeployment and Redundancy) Regulations

1994, to be provided with employment offers in writing which set out the

terms and conditions of the offer. This is regardless of whether the

employment opportunity is in the home agency or in another

organisation.

Where a registered employee receives but refuses to accept an offer of

suitable employment or obstructs their redeployment to a suitable

employment opportunity, the Agency Support Division may, under

approved delegations, direct the employee to accept that offer.

Refusal to accept the offer at that stage may be considered a breach of

discipline under the Public Sector Management Act 1994 and any

employee dismissed under the Act, is not entitled to a severance

payment.

4.8.2 Acceptance of Fixed Term Contracts by Registered Employees

Unless the appointment is processed under secondment arrangements,

a registered employee accepting an offer of a fixed term appointment

made under the provisions of Section 64(1)(b) of the Public Sector

Management Act 1994, loses any right or entitlement associated with

their previous status as a permanent officer.

4.8.3 Registration of Surplus Employee

Under Regulation 11(1)(a) of the Public Sector Management

(Redeployment and Redundancy) Regulations 1994, public sector

employing authorities can apply to register an employee for

redeployment:

whose position has been abolished, or who is otherwise surplus to

the requirements of his/her department or organisation; and

who cannot be transferred within his or her department or

organisation.

Registration is not automatic and is subject to approval by the Deputy

Commissioner, Agency Support Division, Public Sector Commission.

Discretionary powers to not register an employee for external

redeployment apply to the following circumstances.

Redeployment Availability

Registered employees need to be available to attend employment

interviews and to take up employment offers. Confirmation of the

employee’s availability to take up alternative work placements needs to

be provided by the employing authority.

Employability and Job Readiness

Requests to register employees who have negligible redeployment and

retraining prospects owing to highly specialist or insufficient skills and/or

work experience, are unlikely to be accepted.

Agencies seeking to register an employee for external redeployment

must not refer an employee with known substandard performance

problems. Redeployment should not be seen as a means to abrogate

the responsibility of management to monitor and address the

performance of staff.

Confirmation that no recurrent or current sub-standard or other

performance related issues exist, needs to be provided by the employing

authority for registration applications to be accepted.

Arrangements will be made to “de-register” an employee if clear

evidence of substandard performance is ascertained during the

redeployment process or during a trial or temporary placement with

another agency.

Requests to register employees for redeployment, who have incurred a

work or non-work injury and who are undergoing rehabilitation, will not

be accepted.

Being Otherwise Surplus to Requirements

The registration of an employee whose job has not been abolished but

who is otherwise surplus to requirements would only occur in exceptional

circumstances. The basic redeployment premise is that a person’s

position has ceased to exist.

It was never intended that these provisions would apply to enable a

surplus employee whose job remains, but who had incurred work/non

work injuries and requires rehabilitation, to be registered for

redeployment assistance. Nor should they be used to accommodate

requests for other general mobility requests.


Employees who have been transferred to an “attached list” due either to

long term absences, or being otherwise non-operational will only be

registered in exceptional circumstances.

Applications to register employees whose positions remain but who are

unable to fulfil the requirements of the job they were employed to do,

because they have failed to maintain their capacity and/or level of

knowledge and skills required for the role, are unlikely to be accepted.

Likelihood for Internal Placement

Applications to register employees who have strong prospects for

securing an alternative placement within their own organisation based on

known attrition rates, are unlikely to be accepted. For example, a level 2

Personnel and Payroll officer from an organisation that has a large

personnel and payroll workforce would typically not be registered for

redeployment.

Willingness to cooperate with the redeployment process

Public sector employees need to acknowledge and accept responsibility

for their role in the redeployment process and be willing to actively

pursue alternative employment opportunities.

The registration of an employee who is not willing to accept their

responsibilities in this regard is unlikely to be accepted.

4.8.4 Classification Maintenance

Surplus employees, whether registered employees or not receive

classification maintenance while awaiting internal or external

redeployment. Classification maintenance offers the employee protection

of the substantive classification level, and maintains the rate of pay to

which the employee was entitled in respect to the abolished position.

4.8.5 Pay Maintenance

Regulation 18(4) of the Public Sector Management (Redeployment and

Redundancy) Regulations 1994 provides for pay maintenance

arrangements to apply for a period of 6 months to registered employees

who accept an offer of suitable employment which attracts a lesser rate

of pay to that received in their former position.

The pay maintenance period commences the day after the registered

employee begins employment in a new position. This is regardless of

whether the position is a permanent or fixed term contract position.

However, if a registered employee begins employment in a job on a trial

arrangement under Regulation 14 of the Public Sector Management

(Redeployment and Redundancy) Regulations 1994 (retraining of

registered employees), pay maintenance provisions would commence

on the date the registered employee actually commences in the position

following completion of the successful trial.

When making employment offers to registered employees, all employing

authorities are required to set out the terms and conditions, including pay

rates in a formal offer. This would include pay maintenance

arrangements to ensure there is a clear understanding of the

arrangement entered into prior to accepting the offer.

In the case of broad banding personal classifications, the maintenance

of such classification also continues for a six-month period following the

acceptance by a registered employee of a suitable position.

For income maintenance purposes, Regulation 3 of the Public Sector

Management (Redeployment and Redundancy) Regulations 1994

defines pay as the award rate of pay and enterprise bargaining

allowances and allowances for being in charge of other employees.

Allowances that are always paid with the award rate of pay applicable to

the employee’s substantive classification, and which do not relate to

conditions such as the time, place and circumstances at or in which the

person is employed would also be included.

4.8.6 Leave Entitlements

Redeployment does not affect an employee’s accrued annual, long

service and sick leave entitlements. These are transferred to the new

employing authority as provided for under Regulation 18 of the Public

Sector Management (Redeployment and Redundancy) Regulations

1994. Additionally, Regulation 12 of those Regulations provides an

entitlement to reasonable leave without loss of pay for a registered

employee to attend:

employee interviews with other employing authorities and with

employers outside the public sector; and

career counselling of a kind approved by the employing authority.

Leave without pay should not be viewed as an entitlement, but is an

option for registered employees who wish to undertake full time study or

search for a job in the private sector. Approval for leave without pay

must be obtained from the employing authority and as a general rule, the

employee is de-registered for the duration of the leave.


The period taken as leave without pay would not count for accrual of any

leave, payment of increment or for the purpose of calculating any

subsequent severance payment.

4.8.7 Relocation Entitlements

Registered employees who are required to relocate as a result of

accepting a new position, will be reimbursed by the new employing

authority all reasonable expenses incurred in moving household

belongings. (Unless other arrangements are negotiated between the

receiving and home agencies).

If an award or other written law, which applies to the employee, provides

for the payment of relocation expenses, reimbursement will be in

accordance with that award or written law.

4.8.8 Retraining

Retraining is an option for registered employees who have little or no

prospect of obtaining suitable alternative employment. It provides them

with sufficient transferable skills to enable them to obtain ongoing public

sector employment in the shortest time-frame possible.

The appropriateness of retraining will largely depend on an assessment

of the employee’s capacity to retrain, redeployment prospects and the

realistic chances of an actual job being found following completion of the

training.

All parties must agree to any retraining arrangement i.e. the registered

employee, the current employing authority and if applicable, the new

employing authority that employs the employee for retraining purposes.

Retraining generally takes the form of on the job training in an area

where employment prospects exist or are likely to exist in the near

future. Regulation 14 of the Public Sector Management (Redeployment

and Redundancy) Regulations 1994 provides broad coverage of

arrangements i.e.:

arrangements need to be agreed upon by all parties involved;

up to a maximum period of 6 months;

costs to be covered by the home agency;

does not impact on “pay maintenance” arrangements;

retraining placements can be either within or outside the public

sector;

retraining placements can be internal or external to the home agency;

retraining may include undertaking a short term skill enhancement or

development course(s);

retraining is not an entitlement but is by negotiation; and

period of retraining is considered as service and as such all benefits

such as annual leave and long service leave will continue to accrue.

4.8.9 Trial Placements

Trial placements may be offered when doubt exists as to the suitability of

the registered employee in the position to which they have been

referred.

Trial placements are usually set between 3 to 6 months duration, with

the expectation that satisfactory performance during the trial will result in

either permanent appointment or appointment for an extended trial

period. Funding of the redeployees salary during the trial period is to be

negotiated by the home and receiving agency prior to the trial period

commencing.

Before a trial placement commences, the receiving agency should also

provide the redeployee with clearly defined performances targets and

expectations to be met during the placement. The redeployee and their

case manager should be provided with regular performance feedback

during the course of the trial to enable any concerns that may be raised,

to be addressed.

At the mid-point of the trial period, the receiving agency should provide

the home agency with verbal feedback or a brief formal report on the

progress of the placement. The case manager should discuss the

feedback or contents of the report with the registered redeployee. If the

placement was not progressing satisfactorily, the case manager should

suggest remedial or developmental actions where appropriate.


One action may be to extend the trial period to enable any shortcomings

to be addressed. All parties must agree to any extensions to trial

placements. At the conclusion of the trial, a formal report, which provides

for one of the following outcomes should be prepared by the receiving

agency:

the registered employee is confirmed in the position on a permanent

basis;

a further trial period is negotiated; or

the placement is terminated and the registered employee returns to

the home agency.

As a general principle, and because of the premise that satisfactory

performance in a trial placement will result in a permanent placement,

the registered employee will be considered unavailable for other

redeployment opportunities during the course of the trial. Similarly, a

registered employee cannot reject a permanent job opportunity for the

sole reason that a trial period is required or requested.

Unless established as an approved retraining arrangement under

Regulation 14, the trial period will be included when calculating the 6-

month salary maintenance period referred to in Regulation 18(4) of the

Public Sector Management (Redeployment and Redundancy)

Regulations 1994.

4.8.10 Application of 80 – 110% Provisions

The Public Sector Management Act 1994 defines suitable office, post or

position or suitable employment as one:

which is suitable having regard to the respective responsibilities

attached to it and to the office, post or position or employment

occupied or held by the employee at the time when the relevant offer

is made and to the experience, qualifications and competence of the

employee;

which does not require the employee to change his or her place of

residence; and

which satisfies such other criteria as are prescribed.

The Public Sector Management Act (Redeployment and Redundancy)

Regulations 1994 prescribe those other criteria as follows:

is the most suitable actually available; and

the maximum pay applicable to the office, post or position or

employment is (i) as close to that applicable to the former office post

or position or employment as is reasonably practicable; and (ii) in any

case, subject to Sub-Regulation (3) is not less than 80%, nor more

than 110%, of the maximum pay applicable to the range of

classification within which the office, post or position or employment

occupied by the employee.

The 80-110% provisions were intended to facilitate the movement of

employees across awards. While designed to achieve redeployment

outcomes these provisions were never intended to circumvent the

principles of merit selection. Nor were they designed to be applied

capriciously or oppressively to effect indiscriminate regressions and/or

promotions within an employee’s existing award.

80% - 110% Example

The following serves as an example only of the application of the 80% -

110% provisions.

Mr X is employed as a HSU Level 7 officer. This level carries a salary

range of $65,502 to $69,761 per annum. To determine the range of

salaries which may constitute potentially suitable employment, the

maximum of the range i.e. $69,761 is multiplied by 80% to give the

minimum acceptable salary and multiplied by 110% to give the maximum

acceptable salary, i.e. $69,761 x 80% = $55,809 and $69,761 x 110% =

$76,737.

Therefore alternative positions that carry a maximum salary of between

$55,809 and $76,737 may, if all other criteria are met, be considered to

be suitable positions.


4.8.11 Process for Filling Reclassified Positions


Redundancy) Regulations 1994 requires all organisations to gain a

clearance to advertise all vacancies that are greater than 6 months

duration.

The decision to give the current occupant of the position the benefit of

any reclassification is a local matter for each agency.

However, once the agency seeks to advertise and fill the position then

the normal clearance process using RAMS applies. There are no

automatic clearances given in these circumstances, and the claims of

any registered employees referred for consideration should be treated in

the same manner as any other referral.

4.8.12 Exemption to Refer Vacancies

Under Regulation 24(2) of the Public Sector Management

(Redeployment and Redundancy) Regulations 1994 the Deputy

Commissioner, Agency Support Division, Public Sector Commission, has

delegated authority on behalf of the Minister for Public Sector

Management to exempt the referral of vacancies for redeployment

clearance. All requests for exemptions need to be formally submitted to

the Agency Support Division.

Exemptions may be granted for “one off” circumstances such as the

appointment of a trainee to an entry level position, or, for the short term

extension of an existing employment contract. In other instances

exemptions may be granted to exempt the referral of a particular type or

class of job on an “ongoing” basis, for example a Clinical Nurse.

Requests for “ongoing” exemptions are usually only considered where it

can be shown that the positions are highly specialised, are agency

specific, have no chance of an external redeployee ever being available

for placement and where delays to recruitment processes could

adversely affect the delivery of critical services.

Note: As a standard practice the Agency Support Division monitors the

daily listing of public sector vacancies posted in RAMS. Where it is

known that no suitable registered redeployees are available action is

taken to clear the vacancies for advertising. In most instances this

process provides for a faster vacancy clearance turnaround than what

can be achieved through the formal submission and determination of

requests for exemption.

There is no requirement for agencies to seek clearance for short-term

vacancies of up to six months. However, redeployment clearance is

required for vacancies that have the possibility for an extension beyond

six months.

This exemption also does not apply to situations where a vacancy which

was initially identified as having a duration of less than 6 months,

subsequently exceeds 6 months in total (for example, a vacancy which is

filled on a temporary basis for two consecutive 6 month periods).

4.8.13 Pool Recruitment

Pool recruitment opportunities entered in RAMS receive an automatic

redeployment exemption as these advertisements do not involve the

immediate filling of an actual vacancy, as opposed to the gathering

together of a pool of suitable applicants for possible placement in future

positions.

Positions that involve the filling of actual position(s), with secondary

actions involving the possibility of suitable applicants being considered

for appointment to future vacancies do not represent a pool

advertisement for redeployment exemption purposes.

All subsequent vacancies that arise and which are to be filled from

applicants contained within a recruitment pool need to be submitted for

redeployment clearance. This requirement applies regardless of the

shortness of time that has elapsed between the posting of the pool

advert and the occurrence of the subsequent vacancy.

Subsequent vacancies need to be individually identified as either a

permanent or fixed term placement opportunity. They do not represent,

and should not be identified as, a “pool recruitment” opportunity because

of the intention to fill them from applicants received through an earlier

pool advertising process.

Pool opportunities advertised in RAMS are monitored for the possibility

of providing retraining placements for registered employees due to the

requirement that appointment pools should only be used where it can be

demonstrated that a large number of like vacancies may become

available. Subject to confirmation of suitability, an ongoing placement

would be expected in these circumstances.


4.8.14 Resubmission of Cleared, Non Advertised Vacancies

A vacancy clearance notification is valid for 3 months (90 days) from the

date the vacancy status was changed in RAMS to “cleared for

advertising”. A further redeployment clearance will be required should

actions to advertise or fill the position not have commenced prior to the

expiration of that period.

4.8.15 SES Officers

An SES Officer who is employed on a fixed term contract and who is not

a permanent officer is ineligible to access redeployment and voluntary

severance under the Public Sector Management (Redeployment and


SES Officers with a right of return entitlement under S58 of the Public

Sector Management Act 1994, can exercise that entitlement either at the

time of their SES contract being terminated under s56(3) of the Public

Sector Management Act 1994, or when the employee completes their

term of office and is not reappointed.

Upon exercising their right of return, the employee may be eligible to

access redeployment and/or voluntary severance at the classification

level applicable under their right of return arrangement.

4.8.16 Vacancy defined

For redeployment purposes, a vacancy is defined as all posts, offices or

positions, newly created, recently vacated or to be filled on a temporary

basis in excess of 6 months.

5. Voluntary severance

5.1 Legislative Framework

Part 6 of the Public Sector Management Act 1994, and the associated Public

Sector Management (Redeployment and Redundancy) Regulations 1994

provide the legislative framework for the application of voluntary severance in

the Western Australian public sector.

The above Regulations apply to all WA public sector employees except for a

relatively small group for whom redundancy provisions are included in Federal

awards or industrial agreements.

5.2 Overview of Severance Policy

Below is a summary of the key policies associated with the application of

voluntary severance in the WA public sector:

Voluntary severance is not an entitlement and redeployment remains the

preferred option in managing surplus employees.

Successive Governments have chosen to use redeployment and voluntary

severance, as opposed to involuntary severance, as the preferred

approaches in the management of job redundancy.

Offers of voluntary severance may be made to any permanent employee

whose:

o position is, or is to be, abolished; and who

o is or is to be, surplus to the requirements of their organisation.

Offers of voluntary severance follow a process that initially considers the

internal and external redeployment prospects for surplus employees.

Legislation places requirements on public sector organisations offering

voluntary severance to meet certain approval conditions and reporting

requirements.

The standard severance payment for public sector employees is 3 weeks

pay for each year of completed service up to a maximum of 52 weeks.

Employees who have completed more than 1 but less than 2 years of

continuous service are entitled to a severance payment equal to 4 weeks’

pay.

The Regulations also make provision for up to 12 weeks payment in lieu of

notice of redundancy in circumstances where an employee is to become

surplus to requirements and where sufficient notice is not given.


The Regulations place re-employment restrictions on any employee

accepting voluntary severance for a period of time that equates to the total

of the number of weeks of their severance and leave payments.

Public sector employees accepting voluntary severance are required to sign

a letter of severance Refer 5.9.

Employers are required to notify Centrelink of the names of employees who

accept voluntary severance.

Key severance policy applications are explained in more detail in the following

sections.

5.3 Voluntary Severance Approval Procedures

Under Section 93(6) of the Public Sector Management Act 1994, the Deputy

Commissioner, Agency Support Division, Public Sector Commission, has

delegated authority on behalf of the Minister for Public Sector Management for

all voluntary severance approvals. Prior to offers of voluntary severance being

made, approval is required from the Public Sector Commission for both internal

surplus employees and registered redeployees. This requirement also applies

to severance activity under substituted severance arrangements.

All voluntary severance requests must relate to genuine redundancy

circumstances that are associated with the employee’s job having been made

redundant.

In larger restructuring circumstances it may be useful for agencies to use a

voluntary severance “Expression of Interest” form to assist the process of

determining which staff are to receive a severance offer.

All requests for voluntary severance need to be submitted via RAMS. The

system automates the voluntary severance process by the use of severance

submission templates and requires the following information:

the employee’s employment details;

details of the reasons leading to the employee’s office, post or position

being abolished;

confirmation that the employee cannot be transferred within the agency

together with a statement outlining the extent of efforts made to effect a

transfer; and

any additional information that may affect the employee’s redeployment

prospects eg. an injury that may significantly impact upon the range of work

that the person is able to perform.

Employees should not be advised of the outcome of any severance application

prior to approval being sought and obtained. Once approved, and to give effect

to voluntary severance, the agency is obligated to make an offer of severance

to the employee.

5.4 Standard Voluntary Severance Payment


Redundancy) Regulations 1994 provides for a standard severance payment of

3 weeks pay for each year of continuous service, up to a maximum of 52

weeks, served by the employee in the public sector (including a Ministerial

Officer). Employees who have completed more than 1 but less than 2 years of

continuous service are entitled to a severance payment equal to 4 weeks’ pay.

Service to be recognised when determining a severance payment must be

both:

service that constitutes continuous service as defined in the Wages

Employees Long Service Leave General Order (Search under General

Orders); and

service that has been served by the employee in the Western Australian

public sector.

5.5 Voluntary Severance - Rate of Pay Applicable when Higher

Duties Involved

The rate of pay to be applied when determining severance payments is

provided for in Regulation 20(7) of the Public Sector Management

(Redeployment and Redundancy) Regulations 1994. Pay includes the payment

of an allowance for temporarily undertaking duties other than those of the

employee’s substantive position or a higher duties allowance that has been

paid to the employee continuously for the preceding 12-month period.

Where an employee has been in receipt of a higher duties allowance at two

different classification levels, the higher duties allowance rate received by the

employee for the greater portion of the preceding 12-month period of the acting

period would be the rate applied for the severance calculation.

5.6 Voluntary Severance - Substituted Severance Arrangements

Agencies/SSCs can notify the Agency Support Division of the availability of

potential substituted severance placement opportunities within their portfolios.




This “brokering service” provided by the Agency Support Division, places the

following operational requirements on agencies/SSCs:

Where a potential match exists, it is up to the two agencies/SSCs involved

to liaise directly with each other to negotiate an outcome. The agency with

the surplus employee is responsible for meeting the severance payment

costs. Unless otherwise negotiated, other associated costs, i.e., accrued

leave entitlements, would be paid by the agency with the available position.

In lieu of notice of redundancy payments (see Section 5.7) do not apply to

substituted severance arrangements.

Where a substituted severance match occurs, the agency/SSC with the

surplus employee is still required to obtain the approval of the Minister for

Public Sector Management prior to offering voluntary severance.

Substituted severance arrangements involving an employee moving across

awards and between employing authorities would need to be facilitated

through the registration of the employee as a registered employee.

5.7 Payment in Lieu of Notice of Redundancy

The Public Sector Management (Redeployment and Redundancy) Amendment

Regulations 2000 provide for notice of redundancy entitlements.

Regulation 4A places a requirement on public sector employers to provide

employees with at least 12 weeks written notice of redundancy, where the

employee’s position is to be abolished and the employee is to become surplus

to requirements.

The written notice of redundancy needs to confirm both of the following two

facts:

the employee’s office, post or position is to be abolished; and

the employee will become surplus to agency requirements.

In the absence of providing the above notice, and where the employee receives

and accepts an offer of voluntary severance made under Regulation 6, 15 or

16, of the Public Sector Management (Redeployment and Redundancy)

Regulations 1994 then the employee is entitled to receive one week’s pay for

each week, or part of a week, of notice that he or she did not receive.

The Notice of Redundancy and pay in lieu requirements came into effect on 1

September 2000. No retrospectivity arrangements were provided for.

An in lieu of notice of redundancy payment is in addition to the voluntary

severance payment and does not form part of the employee’s “period of

restriction” for any subsequent re-employment in the public sector.

An in lieu of notice of redundancy payment is not paid when voluntary

severance is paid under substituted severance arrangements provided for by

Regulation 7 or 17 of the Public Sector Management (Redeployment and



The following examples are provided to help clarify Regulation 4A applications:

Situation 1

An employee’s position was abolished

prior to 1 September 2000. However,

the employee has only now been

declared surplus to requirements and

has received an offer of voluntary

severance under Regulation 6.

Application 1

The provisions of Regulation 4A do not

apply here as the employee’s position

had been abolished prior to Regulation

4A being added to the Public Sector

Management Act (Redeployment and

Redundancy) Regulations on 1

September 2000. No retrospectivity

arrangements apply.

Situation 2

On 1 February 2002 an employee was

provided with written notice to confirm

that their position was to be abolished

on 1 March 2002. However, the written

advice had not informed them that they

will become surplus to requirements as

their services were still required to

undertake other urgent project duties. At

that time there was a good chance that

another internal position at level would

become available in the near future.

All parties were happy with this

arrangement however 4 months later,

following completion of the project work;

the employing authority formally advised

the employee that they were “surplus to

requirements”. The employee accepted

a Regulation 6 offer of voluntary

severance.

Application 2

The provisions of Regulation 4A require

the employing authority to give the

employee at least 12 weeks written

notice of the two facts that:

their position is to be abolished,

and

they will become surplus to

requirements

In this situation the employer has only

provided the employee with written notice

of one of the two required facts.

Consequently, at the time of acceptance

of the Regulation 6 severance offer by

the employee, the person would be

entitled to receive 12 weeks pay in lieu of

redundancy notice.

Situation 3

As a consequence of restructuring activity

a group of 10 employees were called to a

meeting on 1 March 2002 and informed

that their positions will be abolished on

the 30 June 2002, and, that they will all

become surplus to requirements from that

date. At the meeting they were all given a

Restructure Information Notice, which

formally confirmed this information to

them.

In early June, all ten employees receive

and accept Regulation 6 offers of

voluntary severance to take effect from

30 June 2002.

Application 3

The Restructure Information Notice

given to employees confirmed in writing

the two Notice of Redundancy facts

required by Regulation 4A, i.e., that

their positions will be abolished and

that they will become surplus.

Consequently, the employees are not

entitled to receive a payment in lieu of

notice of redundancy.

Situation 4

On Tuesday 5 March 2002 an employee

is given written notice that their job is to

be abolished and that they will become

surplus to requirements in 4 weeks and 4

days time. On the same day the

employee received the written notice of

redundancy, they also received an offer

of voluntary severance under Regulation

6. They accept the offer of severance 2

days later and are allowed to cease work

the following Friday, i.e. 9 March 2001.

Application 4

In this instance the employee has been

provided with 4 weeks and 4 days

notice of the fact that their job is to be

abolished and that they will become

surplus to requirements. Consequently

they are entitled to receive 8 weeks

payment in lieu of the required notice.

The fact that the employee is permitted

to leave the employ of the employing

authority prior to the date their job is to

be abolished and the date they will

become surplus to requirements

doesn’t alter the amount of pay in lieu

of redundancy notice that is required to

be paid.

The same situation would also apply to

circumstances where an employee is

permitted to leave with severance at a

later date to the date their job is to be

abolished and the date they will

become surplus to requirements.


5.8 Voluntary Severance Offer

Voluntary severance offers need to specify the day on which the employee

accepting the offer is to resign and provide for the payment of the standard

severance payment after the resignation takes effect. An employee who

accepts an offer of voluntary severance is required to do so in writing. A sample

Offer of Voluntary Severance can be obtained from the Agency Support

Division or the Public Sector Commission website.

Employees considering an offer of voluntary severance should be strongly

encouraged to seek professional financial advice.

5.9 Letter of Severance

Public sector employees accepting voluntary severance are required to sign a

letter of severance to affirm their understanding, and acceptance, of the terms

and conditions of their voluntary severance. A sample Letter of Severance can

be obtained from the Agency Support Division or the Public Sector Commission

website.

5.10 Conditions of Re-Employment

Unless granted an exemption under Regulation 22(2) of the Public Sector

Management (Redeployment and Redundancy) Regulations 1994, persons

taking a voluntary severance payment cannot be re-employed within the public

sector for the period of restriction determined under Regulation 22(1) on either:

a contract of service basis; or

a contract for service basis, where direct consultancy arrangements apply.

Both of these arrangements imply a direct employment relationship and are not

permitted. However, contracts for service on an indirect consultancy basis can

be undertaken.

The restriction on redeployment period equates to the total of the number of

weeks of severance and leave payments made to the individual. It does not

include any period of time associated with an in lieu of notice of redundancy

payment. The same basis applies for determining the period of restriction for

employees who have worked part time.




5.11 Severance Payment Refund Calculation

The following formula, incorporated into an example to assist agencies, should

be used to calculate a severance repayment should a person be re-employed

within the period that was used to calculate the severance payment.

A = B X (D-C) /D

Where:

A = the amount repayable.

B = Severance component of the redundancy payment as defined by

Regulation 20 of the Public Sector Management (Redeployment and


C = The number of weeks from the date of the severance payment to being

re - engaged in State Government funded employment activities as an

employee of or as a consultant to a public sector employing authority.

D = the number of weeks used to calculate the severance payment (in the

period of restriction).

SEVERANCE REPAYMENT EXAMPLE:

An employee has accrued ten (10) years service with a public sector employing authority. At the time

that employee's substantive position was declared redundant, the weekly rate of pay was $500 per

week. On accepting severance the employee also received a payment for ten (10) weeks of accrued

leave.

Based on the above the total “period of restriction” is forty (40) weeks, comprised of thirty (30)

weeks for severance pay period and ten (10) weeks for the leave component.

Fifteen (15) weeks after the date the severance payment was made, the employee obtains an

exemption and takes up a position with another public sector employing authority. The amount to be

repaid would therefore be as follows:

A = B x (D-C)/D.

= $15,000 x (30 - 15)/30.

= $7,500 repayment.

Where:

B = Weekly rate of pay x 30 = $15,000 (i.e. three weeks pay for every year

of service, i.e.. 3 x 10), as per Regulation 20(1) for the employee’s severance

component.

C = 15 weeks (time elapsed since the date of their severance payment).

D = 30 weeks (severance component of period of restriction).


5.12 Rates of Pay for Part Time Service

Regulation 3, 9, 19, and 20 of the Public Sector Management (Redeployment

and Redundancy) Regulations 1994 refers in this situation. For determining the

weekly pay that is to apply to an employee who during their period of

continuous service worked a different number of hours in different weeks the

following formula is used.

A = B x C

Where:

A = the employee’s weekly pay;

B = the employee’s full time weekly pay; and

C = the employee’s average weekly hours expressed as a

percentage of the employee’s potential full time weekly hours.

5.13 Taxation and Superannuation Implications

Bona-Fide redundancy payments and approved early retirement scheme

payment attract concessional taxation benefits.

Concessional taxation benefits are determined by the Australian Taxation

Office (ATO) taking into account a number of individual circumstances

associated with the employee’s age and service history. Because of this it is

imperative that individual employees be advised to obtain advice directly from

the ATO.

Certain conditions determine what represents a “bona-fide” redundancy.

Information on those conditions and Eligible Termination Payments can be

found on the ATO Website.

EXAMPLE: SEVERANCE PAYMENT EXAMPLE INVOLVING DIFFERENT HOURS IN

DIFFERENT WEEKS:

An employee who has worked a different span of hours over the past 4 years of their continuous

service in the public sector has been offered and is interested in accepting an offer of severance.

They had worked an average of 40 hours per week for 6 months, 35 hours per week for 6 months,

40 hours per week per week for 12 months, 35 hours per week for 12 months and 40 hours per week

for the last 12 months. Had they been employed on a full time basis their rate of pay at the date of

accepting voluntary severance would have been $ 25,000. Their potential full time weekly hours

would have been 40 hours.

Their severance payment would be 12 weeks based on the application of Regulation 20(1) – i.e. 3

weeks pay for each year of continuous service.

The rate of pay to be applied would be calculated as follows:

A = the pay rate to be determined.

B = the pay rate they would have received had they been employed on a full time basis,

i.e. $ 25,000.

C = average weekly hours expressed as a percentage of the employees potential full

time weekly hours, i.e., 40 hours.

Calculation:

total period worked = 4 years or 208 weeks.

total hours worked in that period = 7930 hours.

average weekly hours: 7930 (total hours) divided by 208 (total weeks)

= 38.12 hours.

percentage of full time weekly hours (i.e., 40 hours) = 95.3 %.

Payment rate then based on 95.3% x current rate of pay (as defined under Regulation 3 of the Public

Sector Management (Redeployment and Redundancy) Regulations 1994).

http://www.ato.gov.au/businesses/content.asp?doc=/content/22585.htm


Similarly, for matters relating to Superannuation, individuals should contact the

GESB or their superannuation company to obtain current and relevant

superannuation advice.

5.14 Notification to Centrelink

Provisions in the Termination Change and Redundancy General Order place

requirements on employers to notify Centrelink about terminations. This applies

regardless of the number of employees involved.

As soon as possible after a decision is taken that positions are redundant and it

is known in advance that voluntary severance will, or is likely, to be offered to a

number of employees affected by significant workplace reform activity (for

example closure of a major program area) the employing authority needs to

notify Centrelink in writing providing details of:

the background circumstances/reasons for the possible severances;

the number and employment categories (permanent, contract, part time/full

time);

the total number of employees normally employed; and

the period over which the severances are likely to occur

Where voluntary severance is to be offered to an employee in “one off”

circumstance, the employing authority as soon as possible after an employee

accepts an offer of voluntary severance needs to notify Centrelink in writing

providing details of:

the background circumstances/reasons leading to the employee being

offered severance;

the employment category (i.e., permanent part time/full time, contract part

time/full time, casuals etc) of the employee accepting severance; and

the date on which the employee is to cease employment.

The notification needs to be forwarded in the form of a letter and faxed to

Centrelink’s National Office at 03-132115.

http://www.gesb.wa.gov.au/

6. Career transition services

Career transition services and a range of workshops are available for all public sector

employees facing changes in their career.

Public sector organisations are encouraged to take advantage of the programs

offered, particularly those organisations facing a change agenda. A structured career

transition program that takes into account the organisation's needs can assist

employees to recognise that organisational change is a reality. It helps them to better

cope with the stress caused by job loss and job relocation and to understand that

they are ultimately responsible for planning their own development growth and

movement within the public sector.

The programs are designed to assist all officers to effectively manage the career

transition process and to help them become 'job ready' for a broader range of

employment options.

6.1 Accessing the Career Transition Courses

The agency case manager should ideally provide details of available

workshops during the initial interview with the employee. More information on

Career Transition Programs, including the workshop calendar, and advice on

customising workshops for in-house delivery can be obtained by contacting

DTF Shared Services on 9258 0787 or 9258 0116.

Where supported, the home agency is responsible for workshop fees and the

release from duties to attend nominated workshops.

6.2 The Need for Proactivity

While the home agency can assist redeployees with the identification of

compatible job vacancies and negotiate potential public service placements on

their behalf, it is in the interest of the redeployee to adopt a proactive approach

to securing suitable employment.

It is important to reinforce with employees that by adopting a positive attitude

towards career transition, individuals may find a more rewarding and satisfying

career than in their previous employment. This in turn will serve to prevent the

more negative consequences generally associated with the adoption of a

'reactive' approach.


6.3 Outplacement Services – Common Use Contract

While individual counselling is not an integral component of the career planning

process, some redeployees may benefit from a targeted approach or

professional intervention. This is an option open to agencies in the overall

management of a redeployee.

The Agency Support Division can provide advice in this area and the

Outplacement and Specialist Services Contract is also available to agencies.


7. Presentation material and fact sheets

7.1 Redeployment and Redundancy Fact Sheets

To assist agencies to manage redeployment and redundancy activity, fact sheets

have been developed covering the key aspects. Electronic copies can be accessed

on the Public Sector Commission website.

7.2 Redeployment and Redundancy Presentation Material

It is recognised that agencies may wish to develop educational programs or

conduct information sessions for individuals or groups in relation to

redeployment and redundancy issues.

Presentation materials have been developed which provide an overview of the

legislative base and policy issues applicable to redeployment and redundancy.

The presentation materials are meant as a guide for agencies and can be

accessed on the Public Sector Commission website.



CHANGE MANAGEMENT CHECKLIST · 2014-12-29 · Agency Support Division - 1. Organisational change...

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