AN160068 – Clerks (Unions and Labor Movement) Award 2004
(1) Definition
Redundancy occurs when an employer decides that the employer no longer wishes the job the employee has been doing to be done by anyone and this is not due to the ordinary and customary turnover of labour.
(2) Transfer to lower paid duties
Where an employee is transferred to lower paid duties by reason of redundancy the same period of notice must be given as the employee would have been entitled to if the employment had been terminated and the employer may at the employer’ s option, make payment in lieu thereof of an amount equal to the difference between the former ordinary rate of pay and the new ordinary time rate for the number of weeks of notice still owing.
(3) Severance pay
(a) In addition to the period of notice prescribed for ordinary termination in Clause 22. - Termination of Employment, of this award an employee whose employment is terminated by reason of redundancy must be paid, subject to further order of the Commission, the following amount of severance pay in respect of a continuous period of service:
Period of continuous service |
Severance pay |
1 year or less |
Nil |
1 year and up to the completion of 2 years |
4 weeks’ pay |
2 years and up to the completion of 3 years |
6 weeks’ pay |
3 years and up to the completion of 4 years |
7 weeks’ pay |
4 years and over |
8 weeks’ pay |
(b) Week’s pay means the ordinary time rate of pay for the employees concerned.
(c) Provided that the severance payments shall not exceed the amount which the employee would have earned if employment with the employer had proceeded to the employee’s normal retirement date.
(4) Employee leaving during notice period
An employee whose employment is terminated by reason of redundancy may terminate the employment during the period of notice and, if so, will be entitled to the same benefits and payments under this clause had they remained with the employer until the expiry of such notice. However, in this circumstance the employee will not be entitled to payment in lieu of notice.
(5) Alternative employment
An employer, in a particular redundancy case, may make application to the Commission to have the general severance pay prescription varied if the employer obtains acceptable alternative employment for an employee.
(6) Time off during notice period
(a) During the period of notice of termination given by the employer an employee shall be allowed up to one day’s time off without loss of pay during each week of notice for the purpose of seeking other employment.
(b) If the employee has been allowed paid leave for more than one day during the notice period for the purpose of seeking other employment, the employee shall, at the request of the employer, be required to produce proof of attendance at an interview or the employee shall not receive payment for the time absent. For this purpose a statutory declaration will be sufficient.
(7) Superannuation benefits
(a) Subject to further order of the Commission where an employee who is terminated receives a benefit from a superannuation scheme, the employee shall only receive under subclause (3) of this clause the difference between the severance pay specified in that clause and the amount of the superannuation benefit the employee receives which is attributable to employer contributions only.
(b) If this superannuation benefit is greater than the amount due under subclause (3) of this clause then the employee shall receive no payment under that clause.
(8) Employees exempted
This clause shall not apply to employees with less than one year’s continuous service or where employment is terminated for misconduct, or in the case of casual employees or employees engaged for a specific period of time or for a specified task or tasks.
(9) Employers exempted
Subject to an order of the Commission, in a particular redundancy case, this clause shall not apply to employers who employ less than fifteen employees.
(10) Incapacity to pay
An employer, in a particular redundancy case, may make application to the Commission to have the general severance pay prescription varied on the basis of the employer’s incapacity to pay.
