Continuous service for the purposes of redundancy includes all periods of service in any Victorian public sector agency. This is provided there are no breaks in service between or within each period of service (other than due to breaks caused by approved leave) and provided that no special separation/redundancy payments have previously been made with respect to any of those periods.
Periods of leave without pay do not break continuity but do not count as service for the purposes of calculating an Employee’s entitlement.
Effect of part-time or casual continuous service on the calculation of weekly pay for the purposes of a separation package
The calculation of each week’s pay will be affected by an Employee’s current or past part-time or casual continuous service.
Calculation of packages based on ordinary pay
Redundancy packages must be calculated based on the definition of ordinary pay in the relevant enterprise agreement. If there is no definition of ordinary pay, redundancy packages must be paid on the basis of an Employee’s base salary, not including allowances and penalties.
Calculation basis
ASPs must be calculated in accordance with the below table:
| Element | Basis for calculation |
|---|---|
| 4 weeks’ pay, irrespective of the Employee’s length of service; plus | Actual salary/FTE at the time of separation |
| a lump sum early separation incentive of up to $15,000 (for a full-time Employee); plus | Pro-rata based on current FTE at time of separation |
| 2 weeks’ pay per each completed year of continuous service up to a maximum of 15 years. | See definition of Continuous service above Average FTE across the last 15 years of continuous service |
| An additional four weeks’ pay for Employees who are over 54. | Actual salary/FTE at the time of separation |
ISPs must be calculated in accordance with the below table:
| Element | Basis for calculation |
|---|---|
| 4 weeks’ pay, irrespective of the Employee’s length of service; plus | Actual salary/FTE at the time of separation |
| a lump sum payment of $10,000 (pro-rata for part time Employees); plus | Pro-rata based on current FTE at time of separation |
| 2 weeks’ pay per each completed year of continuous service up to a maximum of 10 years | See definition of Continuous service above Average FTE across the last 10 years of continuous service |
Payment in lieu of redeployment period (up to 3 months) | Actual salary/FTE at the time of separation |
TSPs must be calculated in accordance with the below table:
| Element | Basis for calculation |
|---|---|
| 4 weeks’ pay, irrespective of the Employee’s length of service; plus | Actual salary/FTE at the time of separation |
| 1 additional week pay if the Employee is over 45 years old and has completed at least 2 years of continuous service; plus | Actual salary/FTE at the time of separation |
| 2 weeks’ pay per each completed year of continuous service up to a maximum of 10 years | See definition of Continuous service above Average FTE across the last 10 years of continuous service |
Updated