ACT PUBLIC SECTOR

Termination of ACTPS Liability for APS Redundancy Payments

  • Directors-General
  • HR Managers
  • Shared Services

PURPOSE

  1. To provide advice to agencies in relation to ACT Public Service (ACTPS or ACTGS) liability for Australian Public Service (APS) redundancy payments.

BACKGROUND

  1. At the time of separation of the ACTPS from the APS a set of arrangements were agreed on the management of staff that moved between the services. These were published in the Mobility Arrangements for Officers of the APS and the ACTGS1. One issue covered by the arrangements was the way in which ACTPS and APS service was recognised for redundancy severance benefit purposes in each service. Clauses 1.55 – 1.57 of the arrangements stated that:

“The Commonwealth recognises any continuous period of ACTGS-Commonwealth service for redundancy purposes for all staff who transferred to the ACTGS on 1 July 1994, whether they joined the ACTGS from the APS or from a territory owned authority, until their appointment to the APS.

The Commonwealth will not recognise any prior service for redundancy purposes for staff who join the ACTGS on or after 1 July 1994 and who are subsequently appointed to the APS. However, if such an officer later receives a redundancy payment from the APS, the ACTGS will pay the officer the difference between the amount paid by the APS and the amount he/she would have received if the ACTGS service was recognized by the APS.

Where an APS officer is appointed to the ACTGS, the ACTGS recognises any continuous prior service with the APS for redundancy purposes in the ACTGS.”

  1. The arrangements were given effect in the Public Sector Management Standards 1994 (the first standards) Part 11, Chapter 7 from 1 July 1995, and subsequently through an amendment to the first standards on 25 August 1999 which clarified the Territory’s liability in respect of APS redundancy severance payments i.e. in respect of ACTPS service only, and the mechanism by which such payments could be made.
  1. This provision was subsequently translated to section 495 of the Public Sector Management Standards 2006 (the standards) as below:

“The Chief Executive may approve a special payment in respect of former ACTPS employees who joined the ACTPS after 1 July 1994, later left and joined the APS without a break in service and subsequently accept a voluntary redundancy from the APS.

The payment is in respect of ACTPS service only.

The special payment should be made to the relevant Commonwealth agency following receipt of full calculations and evidence that the Commonwealth agency has made the payment to the former officer.

The special payment should be calculated in accordance with the Employment conditions ACT Public Sector Award 2000.”

  1. The likely intent of this arrangement was to ensure that officers who joined the ACTPS after 1 July 1994 and subsequently transferred to the APS were not disadvantaged, in relation to redundancy payments, when compared to officers who moved to the ACTPS from the APS prior to 1 July 1994.
  1. Section 495 of the standards, potentially placed an indefinite obligation on the Territory to authorise payments in respect of former ACTPS officers made redundant by the APS. However, the time during which officers would be unnecessarily disadvantaged by the establishment of the ACTPS and movement between ACTPS and APS employment has passed. Further, this arrangement places an unreasonable ongoing financial liability on the Territory, which may not have been anticipated at the time of introduction of the provision.
  1. In light of this ongoing liability, the Chief Minister agreed to end existing arrangements for redundancy payments to former ACTPS officers, through an amendment to the standards. Disallowable Instrument DI2009-89, which came into effect on 10 June 2009, amends the standards by removing section 495, thereby removing the Chief Executive’s power to authorise payments in respect of APS severance benefits and ending the Territory’s potential future liability for payments of this nature.
  1. The amendment does not affect:

a)calculation of redundancy severance payments for ACTPS officers with prior APS service;

b)current Commonwealth arrangements where an APS employee was transferred to the ACTPS on 1 July 1994 and subsequently rejoined the APS; the Commonwealth recognizes all APS and ACTPS service for redundancy purposes provided normal APS continuity of service tests are met; or

c)officers who work in APS agencies where ACTPS service is recognized for the purposes of severance benefit payments through an industrial agreement.

  1. Persons seeking advice from ACTPS agencies regarding contribution to an APS redundancy severance benefit in relation to prior ACTPS service should be advised that arrangements for the ACTPS to contribute to APS redundancy payments were terminated through amendment to the Public Sector Management Standards 2006 on 10 June 2009.
  1. The Public Sector Management Group (PSMG), Chief Minister’s Department will continue to undertake a central monitoring role in respect of this matter. Agencies are requested to advise PSMG of any formal requests for the ACTPS to contribute to an APS redundancy payment. PSMG will also be able to provide additional guidance to agencies about how best to respond to a particular request and/or whether further legal advice may be required.
  1. The contact officers are the Senior Manager, Employment Policy (620 75995) or the Senior Policy Officer (620 52664).

APPROVAL AUTHORITY

Catherine Hudson

Commissioner for Public Administration

June 2009

Document Name: Termination of ACTPS Liability for APS Redundancy Payments

Prepared by: Senior Manager, Workplace Relations, Office of Industrial Relations

Version: Number 1

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Issue Date: June 2009