AT773671CRV - Community Pharmacy Award 1998 [Transitional]
[14 substituted by PR948692 ppc 22Jun04]
14.1 This clause does not apply to employees in New South Wales. For redundancy entitlements for New South Wales employees refer to the Pharmacy Redundancy (State) Award, NSW.
14.2 Definitions
14.2.1 Business includes trade, process, business or occupation and includes part of any such business.
14.2.2 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.
14.2.3 Small employer means an employer who employs fewer than fifteen employees.
14.2.4 Transmission includes transfer, conveyance, assignment or succession, whether by agreement or by operation of law, and transmitted has a corresponding meaning.
14.2.5 Week’s pay means the ordinary time rate of pay for the employee concerned. Provided that such rate shall exclude:
14.3 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.
14.4 Severance pay
14.4.1 Severance pay - other than employees of a small employer
An employee, other than an employee of a small employer as defined in clause 14.2.3 hereof, 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 |
14.4.2 Severance pay - employees of a small employer
An employee of a small employer as defined in clause 14.2.3 hereof, 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 clause 14.2.5 hereof.
14.4.3 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.
14.4.4 Continuity of service shall be calculated in the manner prescribed by clause 6.16 of this award. Provided that service prior to 22 June 2004 shall not be taken into account in calculating an entitlement to severance pay for an employee of a small employer pursuant to clause 14.4.2 hereof.
14.4.5 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 test case decision [PR032004] and the redundancy test case supplementary decision [PR062004].
14.5 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 11 of this award. 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.
14.6 Alternative employment
14.6.1 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.
14.6.2 This provision does not apply in circumstances involving transmission of business as set in clause 14.8 hereof.
14.7 Job search entitlement
14.7.1 During the period of notice of termination given by the employer in accordance with clause 11.1 hereof, an employee shall be allowed up to one day’s time off without loss of payment during each week of notice for the purpose of seeking other employment.
14.7.2 If the employee has been allowed paid leave for more than one day during the notice period for the purpose of seeing other employment, the employee shall, at the request of the employer, be required to produce proof of attendance at an interview or he/she shall not receive payment for the time absent. For this purpose, a statutory declaration will be sufficient.
14.7.3 The job search entitlements under this clause apply in lieu of the provisions of clause 11.3 of this award.
14.8 Transmission of business
14.8.1 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 clause called the transmittor) to another employer (in this clause called the transmittee), in any of the following circumstances:
14.8.1(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
14.8.1(b) where the employee rejects an offer of employment with the transmittee:
14.8.1(b)(1) in 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
14.8.1(b)(2) 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.
14.8.2 The Commission may vary clause 14.8.1(b) hereof if it is satisfied that this provision would operate unfairly in a particular case.
14.9 Employees exempted
This clause does not apply to:
14.10 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.
14.11 Redundancy disputes
14.11.1 Clauses 14.11.2 and 14.11.3 hereof impose additional obligations on an employer where an employer contemplates termination of employment to redundancy and a dispute arises (‘redundancy disputes’). These additional obligations do not apply to employers who employ less than fifteen employees.
14.11.2 Where a redundancy dispute arises and, if they have not already done so, an employer must provide affected employees and the relevant union or unions (if requested by any affected employee) in good time, with relevant information including:
14.11.2(a) the reasons for any proposed redundancy;
14.11.2(b) the number and categories of workers likely to be affected; and
14.11.2(c) the period over which any proposed redundancies are intended to be carried out.
14.11.3 Where a redundancy dispute arises and discussions occur in accordance with this clause the employer will, as early as possible, consult on measures taken to avert or to minimise any proposed redundancies and measures to mitigate the adverse affects of any proposed redundancies on the employees concerned.
