AP787043 - Liquefied Petroleum Gas Industry Award 1998
[18 Redundancy pay title changed and substituted by PR950068 ppc 01Aug04]
18.1.1 Business includes trade, process, business or occupation and includes part of any such business.
18.1.2 Redundancy occurs where an employer has made a definite decision that the employer no longer wishes the job the employee has been doing done by anyone and that decision leads to the termination of employment of the employee, except where this is due to the ordinary and customary turnover of labour.
18.1.3 Small employer means an employer who employs fewer than 15 employees.
18.1.4 Transmission includes transfer, conveyance, assignment or succession whether by agreement or by operation of law and transmitted has a corresponding meaning.
18.1.5 Week’s pay means the ordinary time rate of pay for the employee concerned. Provided that such rate shall exclude:
18.2 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.
18.3.1 Severance pay – other than employees of a small employer
An employee, other than an employee of a small employer as defined in 18.1, whose employment is terminated by reason of redundancy is entitled to the following amount of severance pay in respect of a period of continuous service:
Period of continuous service |
Severance pay |
Less than 1 year |
Nil |
1 year and less than 2 years |
4 weeks’ pay* |
2 years and less than 3 years |
6 weeks’ pay |
3 years and less than 4 years |
7 weeks’ pay |
4 years and less than 5 years |
8 weeks’ pay |
5 years and less than 6 years |
10 weeks’ pay |
6 years and less than 7 years |
11 weeks’ pay |
7 years and less than 8 years |
13 weeks’ pay |
8 years and less than 9 years |
14 weeks’ pay |
9 years and less than 10 years |
16 weeks’ pay |
10 years and over |
12 weeks’ pay |
* Week’s pay is defined in 18.1.
18.3.2 Severance pay – employees of a small employer
An employee of a small employer as defined in 18.1 whose employment is terminated by reason of redundancy is entitled to the following amount of severance pay in respect of a period of continuous service:
Period of continuous service |
Severance pay |
Less than 1 year |
Nil |
1 year and less than 2 years |
4 weeks’ pay* |
2 years and less than 3 years |
6 weeks’ pay |
3 years and less than 4 years |
7 weeks’ pay |
4 years and over |
8 weeks’ pay |
* Week’s pay is defined in 18.1.
18.3.3 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.
18.3.4 Continuity of service shall be calculated in the manner prescribed by clause 18.10. Provided that service prior to 1 August 2004 shall not be taken into account in calculating an entitlement to severance pay for an employee of a small employer pursuant to 18.3.2.
18.3.5 Application may be made for variation of the severance pay provided for in this clause in a particular redundancy situation in accordance with the Redundancy Case Decision [PR032004, 26 March 2004] and the Redundancy Case Supplementary Decision [PR062004, 8 June 2004].
18.4 Employee leaving during notice period
An employee given notice of termination in circumstances of redundancy may terminate his/her employment during the period of notice set out in clause 17 - Notice of Termination. In this circumstance the employee will be entitled to receive the benefits and payments they would have received under this clause had they remained with the employer until the expiry of the notice, but will not be entitled to payment in lieu of notice.
18.5.1 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.
18.5.2 This provision does not apply in circumstances involving transmission of business as set in 18.7.
18.6.1 During the period of notice of termination given by the employer in accordance with 17.1, 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.
18.6.2 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 he or she shall not receive payment for the time absent. For this purpose a statutory declaration will be sufficient.
18.6.3 The job search entitlements under this subclause apply in lieu of the provisions of 17.3.
18.7.1 The provisions of this clause are not applicable where a business is before or after the date of this award, transmitted from an employer (in this subclause called the transmittor) to another employer (in this subclause called the transmittee), in any of the following circumstances:
18.7.1(a) Where the employee accepts employment with the transmittee which recognises the period of continuous service which the employee had with the transmittor and any prior transmittor to be continuous service of the employee with the transmittee; or
18.7.1(b) Where the employee rejects an offer of employment with the transmittee:
18.7.2 The Commission may vary 18.7.1(b) if it is satisfied that this provision would operate unfairly in a particular case.
This clause does not apply to:
The Commission may vary the severance pay prescription on the basis of an employer’s incapacity to pay. An application for variation may be made by an employer or a group of employers.
18.10 Calculation of continuous service
18.10.1 Continuity of service shall be deemed to be continuous notwithstanding:
18.10.1(a) any interruption or determination of the employment by the employer if such interruption or determination has been made with the intention of avoiding obligations in respect of annual leave;
18.10.1(b) any absence from work of not more than fourteen days in twelve months on account of sickness or accident (proof of which shall be on the employee);
18.10.1(c) any absence on account of leave granted, imposed or agreed to by the employer; or
18.10.1(d) any absence due to reasonable cause (including absences on account of sickness or accident of more than fourteen days), proof of which shall be on the employee.
Provided that in cases of personal sickness or accident or absence with reasonable cause, the employee, to become entitled to the benefit of this clause shall, if practicable, inform the employer in writing within 24 hours after the commencement of such absence of the inability to attend for duty and, as far as practicable, the nature of the illness, injury or cause and the estimated duration of the absence.
18.10.2 In calculating a period of twelve months’ continuous service:
18.10.2(a) any annual leave taken during that period; or
18.10.2(b) any absences of the kind mentioned in 18.10.1(a) and 18.10.1(b) shall be counted as part of such period;
18.10.2(c) in respect of absences of the kind mentioned in 18.10.1(c) and 18.10.1(d) the employee shall serve such additional period as part of the qualification for annual leave as will equal the period of such absences;
18.10.3 where an employee is absent from work for any cause whatever, the employer shall notify the employee within fourteen days of the employee’s return to work whether the employer regards such absence as breaking, either conditionally or unconditionally, the employee’s continuity of service. If the employer does not give such notice within fourteen days, the absence shall not be deemed to be such a break. The employer shall give the notification to the employee by having it delivered to the employee in writing.
18.10.4 where an employee has been absent from employment and the employer has notified the employee that the absence is regarded as a break in continuity of service, the employee may within fourteen days of notification from the employer invoke the Settlement of Disputes procedure prescribed in clause 13.
