AP802001CRV - Victorian Independent Schools - Teachers - Award 1998
PART 4 - TERMINATION AND REDUNDANCY
10. REDUNDANCY
[10 substituted by PR952262 ppc 14Dec04; see also Common Rule Declaration PR953700 appended to this award]
10.1 Definitions
10.1.1 Business includes trade, process, business or occupation and includes part of any such business.
10.1.2 Redundancy occurs where an employer has made a definite decision that the employer no longer wishes the job the teacher has been doing done by anyone and that decision leads to the termination of employment of the teacher, except where this is due to the ordinary and customary turnover of labour.
10.1.3 Small employer means an employer who employs fewer than 15 employees.
10.1.4 Transmission includes transfer, conveyance, assignment or succession whether by agreement or by operation of law and transmitted has a corresponding meaning.
10.1.5 Week's pay means the ordinary time rate of pay for the teacher concerned.
10.1.6 Continuity of service includes all service for which paid leave was applicable. Paid leave includes personal leave (sick leave, infectious diseases leave, carer’s leave and bereavement leave), school holidays, long service leave, examination leave, qualification conferral leave and leave during which accident make-up payments are being received by the teacher. Periods of unpaid leave are not included, except at the discretion of the employer.
10.2 Transfer to lower paid duties
Where a teacher is transferred to lower paid duties by reason of redundancy the same period of notice must be given as the teacher 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.
10.3 Severance pay
10.3.1 Severance pay - other than employees of a small employer
A teacher, other than a teacher employed by a small employer as defined in 10.1, 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 10.1.
10.3.2 Severance pay - employees of a small employer
A teacher employed by a small employer as defined in 10.1 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 10.1.
10.3.3 Provided that the severance payments shall not exceed the amount which the teacher would have earned if employment with the employer had proceeded to the teacher’s normal retirement date.
10.3.4 Continuity of service is calculated in the manner prescribed by 10.1.6 provided that service prior to the first pay period commencing on or after 11 October 2004 will not be taken into account in calculating an entitlement to severance pay for a teacher employed by a small employer pursuant to clause 10.3.2.
10.3.5 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].
10.4 Teacher leaving during notice period
A teacher given notice of termination in circumstances of redundancy may terminate his/her employment during the period of notice set out in clause 11 - Termination of employment. In this circumstance the teacher 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.
10.5 Alternative employment
10.5.1 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 a teacher.
10.5.2 This provision does not apply in circumstances involving transmission of business as set in 10.7.
10.6 Job search entitlement
10.6.1 During the period of notice of termination given by the employer in accordance with 13.1, a teacher will 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.
10.6.2 If the teacher has been allowed paid leave for more than one day during the notice period for the purpose of seeking other employment, the teacher will, at the request of the employer, be required to produce proof of attendance at an interview or he or she will not receive payment for the time absent. For this purpose a statutory declaration will be sufficient.
10.7 Transmission of business
10.7.1 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:
10.7.1(a) Where the teacher accepts employment with the transmittee which recognises the period of continuous service which the teacher had with the transmittor and any prior transmittor to be continuous service of the teacher with the transmittee; or
10.7.1(b) Where the teacher rejects an offer of employment with the transmittee:
10.7.2 The Commission may vary 10.7.1(b) if it is satisfied that this provision would operate unfairly in a particular case.
10.8 Teachers exempted
This clause does not apply to:
10.9 Incapacity to pay
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.
