AP836954 - Medibank Private Limited Award 2004
An eligible employee means a person who is engaged permanently by MPL for a continuous period of more than twelve months but does not include a person engaged as a fixed term employee.
An employee is an excess employee if:
13.2.1 the employee is included in a class of employees which comprises a greater number of employees than is necessary for the efficient and economical working of MPL;
13.2.2 the services of the employee cannot be effectively used because of technological or other changes in the work methods of MPL or changes in the nature, extent or organisation of the functions of MPL; or
13.2.3 the duties usually performed by the employee are to be performed at a different locality and the employee is not willing to perform duties at the locality, and the Commission has determined that the excess employee provisions apply to that employee.
An excess employee terminated under this clause for reasons of redundancy will be entitled to be paid a sum equal to two weeks salary for each completed year of continuous service, plus a pro rata payment for completed months of service since the last completed year of service.
13.3.1 The minimum sum payable as redundancy pay on termination will be four weeks salary and the maximum will be 48 weeks salary.
13.3.2 The sum payable to an employee will not exceed the sum of salary that would be payable were the employee to continue in their employment until the maximum retiring age if any.
13.3.3 Consistent with the Health Insurance Commission (Reform and Separation of Functions) Act 1977 (Cth), and at the time of separation in 1998, where staff transferred from HIC to Medibank Private Limited, the employee’s service is to be regarded as continuous for the purpose of assessing entitlements under this clause.
13.4 Rate of payment - redundancy pay
For the purposes of calculating any payment under 13.3, salary will include:
13.4.1 the employee’s full time salary, adjusted on a pro rata basis for periods of part time service; and
13.4.2 Higher duties: Where an employee has been acting in a higher position for a continuous period of at least twelve months immediately preceding the date on which he or she receives notice of redundancy, the salary level will be the employee’s salary in such higher position at that date.
13.4.3 Shift penalties: Where an employee has, during 50% or more of pay periods in the twelve months immediately preceding the date on which he or she receives notice of redundancy, been paid a loading for shift work, the weekly average amount of shift loading received during that twelve month period will be counted as part of “salary”.
13.5 Period of notice - termination
13.5.1 Where an excess employee is terminated without their consent, the period of notice will be four weeks. In the case of an employee with five years service and aged over 45, the period of notice will be five weeks. Where directed by MPL or at the request of the employee, an earlier termination date will apply. The employee will be paid compensation instead of notice for the unexpired portion of the notice period.
13.5.2 Leave and expenses to seek employment: An employee will be entitled to reasonable leave with full pay to attend necessary employment interviews, from the date the period of notice commences. Where expenses to attend such interviews are not met by the prospective employer, the employee will be entitled to reasonable travel and incidental expenses incurred in attending such interviews.
13.6 Reduction in classification
Where MPL proposes to reduce an excess employee’s classification as an alternative to redundancy:
13.6.1 the employee will be given the same period of notice as the employee would have been entitled to receive if the employment had been terminated; or
13.6.2 the employer may pay an amount to maintain the level of salary received by the employee at the date of notice of reduction in classification for the number of weeks of notice still owing. Such payments will be calculated in accordance with 13.4.
13.7.1 Where a business is before or after the date of this award, transmitted from an employer (in this clause called the transmittor) to another employer (in this clause called the transmittee) and an employee who at the time of such transmission was an employee of the transmittor in that business becomes an employee of the transmittee:
13.7.1(a) the continuity of the employment of the employee shall be deemed not to have been broken by reason of such transmission; and
13.7.1(b) the period of employment which the employee has had with the transmittor or any prior transmittor shall be deemed to be service of the employee with the transmittee.
13.7.2 If the employee is offered suitable alternative employment with the transmittee and that employment is refused, no severance or redundancy pay will be payable.
13.7.3 In this clause business includes trade, process, business or occupation and includes part of any such business and transmission includes transfer, conveyance, assignment or succession whether by agreement or by operation of law and transmitted has a corresponding meaning.
