AP839983 - Airline Operations - Licensed Aircraft Engineers - Qantas Airways Limited - Award 2005
16.1 Definitions
16.1.1 Business includes trade, process, business or occupation and includes part of any such business.
16.1.2 Transmission includes transfer, conveyance, assignment or succession whether by agreement or by operation of law and transmitted has a corresponding meaning.
16.1.3 Week’s pay means the ordinary time rate of pay for the employee concerned. Provided that such rate shall exclude:
16.1.4 Employee means a person who has been employed on a full-time or part-time basis for a period of one year or more and does not include persons employed on a temporary or casual basis.
16.1.5 Redundancy means a declaration by the Company that an employee or employees are surplus to labour requirements because the quantity of the work has diminished.
16.1.6 Retrenchment means the termination of employment of an employee by an employer for reason of redundancy.
16.1.7 Payment means the weekly rate in clause 18 - Wage rates of the award.
16.1.8 Part-time means an employee who is engaged and paid as such. All benefits of this award will be paid on a proportionate basis.
16.2 Period of notice required
If an employee has completed at least one year’s service with the Company and his or her employment is terminated by reason of redundancy, the employee must be given the following period of notice in lieu of the period of notice provided for in clause 15 - Notice of termination:
Completed years of service |
Notice |
1 - 4 years |
4 weeks |
5 - 9 years |
8 weeks |
10 years and above |
12 weeks |
16.3 Severance pay
16.3.1 If an employee’s employment is terminated by reason of redundancy, the employee is entitled to the following amount of redundancy pay on termination:
Period of service |
Severance pay |
Up to 2 years service |
Four weeks payment. |
Over 2 years service |
Two weeks payment for each year of service up to and including five years, and three weeks payment for each completed year of service thereafter, plus pro rata payment for each additional completed month of service. |
16.3.2 Redundancy pay must not exceed the amount payable to the employee had the employee remained in the employ of the Company until the employee’s normal retirement date.
16.4 Annual leave
Annual leave loading must be paid on pro rata leave due on the date of termination.
16.5 Long service leave
Pro rata long service leave must be paid to employees with more than 12 months continuous service.
16.6 Superannuation
Employees are entitled to payment for superannuation as per their current superannuation plan entitlements.
16.7 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.
16.8 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 15 - 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.
16.9 Alternative employment
16.9.1 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.
16.9.2 This provision does not apply in circumstances involving transmission of business as set in 16.14.
16.10 Travel
Eligible employees will be allowed one rebated trip within 12 months of retrenchment. Where appropriate the employee will be allowed to take accrued long service trips within three months of termination.
16.11Job search entitlement
16.11.1 During the period of notice of termination given by the employer in accordance with 15.1, 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.
16.11.2 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.
16.11.3 The job search entitlements under this subclause apply in lieu of the provisions of 15.3.
16.12Leave of absence
Paid leave at rates prescribed by clauses 18 - Wage rates and 19.10 - Senior LAMES, when necessary for employment interviews.
16.13Transfers
16.13.1 Where the Company offers and the redundant employee accepts a transfer interstate to a position with the Company, he shall be entitled to payment of removal expenses and allowances as prescribed in the Company's Personnel Procedures.
16.13.2 An employee who has been declared redundant and who accepts a transfer to another position within the Company may request retrenchment within 90 days of such transfer, in which case the employee shall receive all entitlements prescribed under this clause.
16.13.3 Provided, however, that an employee who transfers interstate and who is subsequently retrenched in accordance with 16.13.2 of this subclause shall not be entitled to any further removal expenses or allowances.
16.14Transmission of business
16.14.1 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:
16.14.1(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
16.14.1(b) where the employee rejects an offer of employment with the transmittee:
16.14.1(b)(i) which the terms and conditions are substantially similar and no less favourable, considered on an overall basis, than the terms and conditions applicable to the employee at the time of ceasing employment with the transmittor; and
16.14.1(b)(ii) 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.
16.14.2 The Commission may vary 16.14.1(b) if it is satisfied that this provision would operate unfairly in a particular case.
16.15Employees exempted
This clause does not apply to:
16.15.1 employees terminated as a consequence of serious misconduct that justifies dismissal without notice;
16.15.2 probationary employees;
16.15.3 apprentices;
16.15.4 trainees;
16.15.5 employees engaged for a specific period of time or for a specified task or tasks; or
16.15.6 casual employees.
16.16Incapacity 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.
