6.2 Redundancy, Redeployment and Retrenchment

6.2 Redundancy, Redeployment and Retrenchment

Note: This agreement is to be read together with an undertaking given by the employer. The undertaking is taken to be a term of the agreement.


Undertakings - Macquarie University Academic Staff Enterprise Agreement 2014

Macquarie University (University) undertakes, while the Agreement is in operation, the following:

1. Clause 2.5.11 - Deduction of Union Dues

The University undertakes to require that a Staff Member provide a written authorisation for the deduction of union dues and levies from salary under clause 2.5.11.

2. Clause 3.3.1 - Backpayments

The University undertakes to make a payment of backpay of the 3% salary increase from 20 March 2014 to current Staff Members employed as at the commencement of the Agreement in the first payrun following the commencement of the Agreement.

3. Clause 3.6.60 - Redundancy Payments Below NES Scale in some circumstances

Where clause 3.6.60 provides for a severance payment which is lower than the NES requires in any particular circumstances, the University will pay the severance payment required by the NES in satisfaction of the Staff Members entitlement to a severance payment under both the NES and clause 3.6.60.

4. Clause 4.1.10 - Cashing Out of Annual Leave

Without affecting clause 4.1.11, the University undertakes that it will never agree to the cashing out of annual leave under clauses 4.1.10 to 4.1.12 of the Agreement if the cashing out would result in the Staff Member's remaining accrued entitlement to paid annual leave being less than 4 weeks.

The University undertakes it will not agree to the cashing out of annual leave under clauses 4.1.10 to 4.1.12 of the Agreement unless the cashing out of the particular amount of paid annual leave is by a separate agreement in writing between the University and the Staff Member.

5. Clause 4.1.14 - Payment in lieu of annual leave

The University will pay an employee their untaken paid annual leave on termination of employment as required by section 90(2) of the Fair Work Act 2009, as amended or replaced.

6. Clause 4.1.25(c)(ii) - Compassionate or bereavement leave

The University undertakes to extend to bereavement leave under clause 4.1.25(c)(ii) to the sibling of a Staff Member's defacto partner (including same sex defacto partners).The University undertakes that it will not deduct leave taken under clause 4.1.25(c)(ii) from personal leave accrued under the NES.

7. Clause 4.1.60(a) - Return from parental leave

The University undertakes not to apply clause 4.1.60(a).

8. Clause 4.12.8 - Suspension without pay

The Vice Chancellor will only exercise the power to suspend without pay in the case of possible Serious Misconduct and the University will - if no Serious Misconduct is found - pay the Staff Member their salary foregone during the period of unpaid suspension.

9. Clause 6.2.6 - Payment of Long Service Leave on Voluntary Redundancy 

The University undertakes to pay an employee their long service leave entitlement payable under the Long Service Leave Act 1955, as amended or replaced, where that payment exceeds the amount payable under the Agreement.  Such a payment is paid in satisfaction of the Staff Members entitlement to a long service leave including under the Agreement and the Long Service Leave Act 1955

For the avoidance of doubt, all reference to provisions of legislation in these undertakings is a reference to those provisions as amended or replaced.

A copy of the Undertaking agreement can be found here.

Voluntary Redundancy

6.2.1 Where, as a consequence of the managing change process (clause 4.8), it has been decided to make one or more positions redundant in an area, the University may invite Staff to apply for voluntary redundancy.

6.2.2 Individual Staff will have 6 weeks from the date of the invitation to submit an application for voluntary redundancy to the University.

6.2.3 If a Staff Member submits an application for voluntary redundancy within two weeks of the date of the invitation and the University accepts the application, the Staff Member will be entitled to a lump sum payment of 4 weeks salary in addition to the Voluntary Redundancy Benefit set out at sub clause 6.2.6.

6.2.4 The University may reject any application for voluntary redundancy where it considers that the position is necessary to its ongoing operations.

6.2.5 Where the University accepts an application for voluntary redundancy, the University will consult with the Staff Member and agree on the final date of employment.

Voluntary Redundancy Benefit

6.2.6 The amount paid for voluntary redundancy will consist of:

(a) a lump sum payment of 20 weeks salary;

(b) an additional lump sum calculated on length of Continuous Service with the University (see table in sub clause 6.2.18(a)) with the total amount payable under this sub clause 6.2.6(a) and (b) not exceeding 72 weeks pay; and

(c) all entitlements for accrued annual and long service leave.

6.2.7 All payments for voluntary redundancy will be calculated at the Staff Member's base rate of pay (excluding loadings) at the date of cessation.

Redundancy, Redeployment and Retrenchment

6.2.8 Where, as a consequence of the managing change process, it has been determined to make specific positions redundant, the University will inform affected Staff that if redeployment is not possible they will be retrenched.

6.2.9 Where appropriate, the University will consider a substitution process ('job swap') to allow an exchange of positions between an affected Staff Member and another continuing Staff Member who has indicated they may accept a voluntary redundancy. This process will be managed on a case-by-case basis and must be approved by the Director, Human Resources or Manager, Employee Relations.  

6.2.10 The University will provide 6 months notice of its intention to retrench the Staff Member. The Staff Member may seek a review of the University's decision in accordance with sub clauses 6.2.22 to 6.2.27 (Redundancy Review).

6.2.11 The University will take all reasonable steps during the notice period to identify positions to which the Staff Member may be redeployed including giving priority consideration to the placement of Staff seeking redeployment. Priority consideration includes a right to interview for any position that the Staff Member identifies as a potential redeployment opportunity.

6.2.12 Where the University identifies a position that may be suitable, it will:

(a) review the skills needed to perform the essential requirements of the position;

(b) assess if the Staff Member has the necessary skills and relevant experience or is able to be retrained to perform in the position;

(c) where it is assessed that the Staff Member is able to be retrained, provide such training as is necessary; and

(d) offer to redeploy accordingly.

6.2.13 The Staff Member will not refuse a reasonable offer of redeployment or training and may only be redeployed to a lower classified position by agreement.  

6.2.14 Where a Staff Member is redeployed to a lower classified position, the Staff Member will receive maintenance of salary payments from the date of transfer for a period of 12 months. The salary maintenance will not include payment of Allowances that were particular to the previous position and not relevant to the new position.

6.2.15 If at the end of the 6 months notice period the University has been unable to redeploy the Staff Member then, as a last resort, the Staff Member's employment will be terminated and the retrenchment benefit paid.

6.2.16 If requested by a retrenched Staff Member, the University will provide a letter certifying that he/she is the occupant of a position deemed to be surplus to the requirements of the University.

6.2.17 A Staff Member will be allowed up to one day time off without loss of pay for each week of notice to attend necessary employment interviews. The Staff Member, at the request of the University, will be required to provide proof of attendance at an interview or payment will not be made for the time absent.

Retrenchment Benefit

6.2.18 A Staff Member who is retrenched will be entitled to the following:

(a) payment in respect of Continuous Service with the University as follows provided that the total payment does not exceed the equivalent of 52 weeks pay.

Payment is based on the length of Continuous Service, where:

Length of Continuous Service

Period of Notice

Less than 1 year

4 weeks

1 year and less than 2 years

8 weeks

2 years and less than 3 years

12 weeks

3 years and less than 4 years

15 weeks

4 years and less than 5 years

18 weeks

After 5 years

18 weeks plus 2 weeks' pay for each additional year of Continuous Service or pro-rata for part thereof.

(b) payment for entitlements in the form of accrued annual and long service leave. For a Staff Member with more than 5 years Continuous Service but less than 10 years, an entitlement calculated at the pro rata rate of two months for ten years of Continuous Service will be paid in respect of long service leave.

Payment will be at the Staff Member's Base Salary (excluding loadings).

6.2.19 A Staff Member whose position has been made redundant and is not receiving a Voluntary Redundancy Benefit referred to in sub clause 6.2.6 will be entitled to:

(a) up to two counselling sessions from an independent financial advisor nominated and paid for by the University; and

(b) outplacement support of up to $1000.00 (inc. GST) payable on receipt of invoice or receipt. University approved providers will provide outplacement support.

6.2.20 If, during the period of notice, a Staff Member, whose position has been made redundant under this clause 6.2, resigns their employment or agrees that redeployment is not an option, they will still be entitled to payments under sub clause 6.2.18 plus a payment for the balance of the notice period or 4 weeks pay whichever is the lesser.

Re-employment after Redundancy or Retrenchment

6.2.21 A Staff Member who has received a Voluntary Redundancy or a Retrenchment package will not be re-employed in any capacity, by the University, within one year of the last day of duty of the Staff Member or a shorter period with the approval of the Director, Human Resources (or Manager, Employee Relations).

Redundancy Review

6.2.22 A Staff Member who elects to seek a review of the decision to declare his/her position redundant must apply to the Director, Human Resources within 7 working days of receipt of the redundancy notice.

6.2.23 On receipt of a request for a Review the Director, Human Resources will establish a Redundancy Review Committee (RRC). The RRC will comprise:

(a) a Chair appointed by the Vice-Chancellor from a pool agreed between the Vice-Chancellor and the Chair of the MUCC. The Chair will be external to the Staff Member's Faculty/Academic Unit or may be external to the University;

(b) one Staff Member appointed by the Vice-Chancellor; and

(c) one Staff Member appointed by the NTEU.

6.2.24 The RRC will be convened within 10 working days of the request for review being received by the Director, Human Resources. The RRC's role will be to review documentation relevant to the decision to declare a position redundant and report whether:

(a) fair and objective criteria were used to identify the redundant position; and

(b) in the case of more than one redundancy, the University acted fairly and properly in the selection of Staff against the criteria.

6.2.25 The RRC:

(a) will allow the Staff Member and/or, if they so choose, their Staff Representative to address the reasons for requesting a review, to respond to any documentation before the RRC and to answer any questions from the RRC;

(b) may seek further material and meet with other Staff or representatives of the University it considers necessary.

6.2.26 The RRC will provide a report of its findings to the Director, Human Resources who will forward the report and associated materials to the appropriate Deputy Vice-Chancellor or equivalent for consideration and decision.

6.2.27 The Deputy Vice-Chancellor or equivalent may:

(a) confirm that the redundancy and retrenchment will proceed as advised; or

(b) request the Head reconsider the criteria used to identify redundant positions; and/or

(c) review the Staff chosen for retrenchment.

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