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Division 1: Redundancy

2.3.3 Purpose

The purpose of this Division is to provide financial benefits for a member whose service in the Permanent Forces is being terminated because of redundancy.

2.3.4 Member this Division applies to

This Division applies to a member who meets both these conditions.

  1. The service of the member is terminated by the CDF under paragraph 24(1)(b) of the Defence Regulation 2016.

  2. The member has completed more than two years of continuous full-time service.

2.3.5 Benefit

  1. On the day the member ceases to be a member of the Permanent Forces as a result of their service being terminated because of redundancy, the member is entitled to these amounts.

    1. A fortnight's salary for each completed year of service that is recognised for long service leave.

      See: Chapter 5 Part 5, Long Service Leave for a definition of this service.

    2. A pro rata payment for each part-year of such service completed.

    3. A fortnight's salary for each completed year of continuous full-time service in the ADF that is not recognised for long service leave accrual.

      Note: This is likely to be earlier ADF service done before a break in service of more than one year.

    4. A pro rata payment for each completed part year of ADF service that is not recognised for long service leave accrual.

  2. Certain periods must be excluded from the calculations in subsection 1. These periods are those included by the Commonwealth or any employer in the calculation of a payment of a special benefit, redundancy payment, or management initiated early retirement benefit, however described.

  3. The amount payable under subsection 1 must not be more than 48 weeks' salary.

  4. If the member's retirement age is less than 48 weeks from the day the service of the member is to be terminated, the amount payable is for the period up to the member's retirement age.

  5. In this section, salary includes any of the following.

    1. Higher duties allowance.

      Exception: Higher duties allowance is not payable if the period of higher duties performed on the day the notice of redundancy was received was less than 12 continuous months.

      See: Chapter 4 Part 1, Higher duties allowance

    2. Service allowance.

      See: DFRT Determination No. 11 of 2013, ADF allowances, Division B.2

    3. Special Forces disability allowance.

      See: DFRT Determination No. 11 of 2013, ADF allowances, Division B.12

    4. Clearance diver allowance.

      See: DFRT Determination No. 11 of 2013, ADF allowances, Division B.14

    5. Maritime disability allowance.

      See: DFRT Determination No. 11 of 2013, ADF allowances, Division B.9

    6. Unpredictable explosives allowance.

      See: DFRT Determination No. 11 of 2013, ADF allowances, Division B.15

2.3.6 Additional payment

  1. This section applies to a member to which both the following apply.

    1. The member's service is terminated early under paragraph 24(1)(b) of the Defence Regulation 2016.

    2. The member provides a written response within the notice period requesting their service end on a day that is less than five weeks from the day the notice under section 24(2) of the Defence Regulation 2016 was given to the member.

  2. The member may be paid an additional amount for the period between the following two days.

    1. The day after the member's service ends.

    2. The last day of the five week period beginning the day the member was given the notice under section 24(2) of the Defence Regulation 2016.

  3. For the purpose of subsection 2, the additional amount is the salary and Service allowance the member would receive had they continued to serve during that period.

2.3.7 Amount repayable if member continues service

A member paid an amount under this Division must repay that amount to the Commonwealth if the member begins a further period of continuous full-time service, within one year of ceasing to be a member of the Permanent Forces.

Exception: The CDF decides the member does not have to repay the amount.

Note: This power must be exercised by the CDF personally.

Application to Reservists: No.



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