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Division 1: Redundancy

2.3.3 Purpose

The purpose of this Division is to provide financial benefits for members of the Permanent Forces who are declared redundant.

Note: In the total workforce model, a member of the Permanent Forces may be described as a member in Service category 6 or 7.

2.3.4 Member this Division applies to

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

  1. The member ceases to be a member of the Permanent Forces when declared redundant. This is in accordance with arrangements approved by the Minister.

  2. See: Regulations 68 and 83 of the Defence (Personnel) Regulations 2002

  3. 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 being declared redundant, 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. However, a member's compulsory retirement age might be less than 48 weeks from the day they leave the Permanent Forces, as a result of being declared redundant. In these cases, the amount payable is salary for that shorter period.

  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 who meets both these conditions.

    1. The member is given written notice of the redundancy.

    2. The member then ceases service at the member's own request during the notice period.

  2. The member must be paid an additional amount for any unserved part of the notice period agreed upon under section 83 of the Defence (Personnel) Regulations 2002. This amount is to be paid at the rate the member would receive had they taken pay instead of recreation leave.

  3. In this section, salary includes service allowance.

    See: DFRT Determination No. 11 of 2013, ADF allowances, Division B.2, published at Chapter 4 Part 2 Part B Division B.2, Service allowance

    Example: A member is given written advice that their redundancy is to take place on 1 June. The member has another job offer, and is given permission to cease service on 15 May in order to start that employment. The member must be paid an amount equal to a payment instead of recreation leave for the period 16 May to 1 June.

2.3.7 Amount repayable if member continues service

The member must repay to the Commonwealth the amount previously paid to the member under this Division, if all these conditions are met.

  1. They have been paid an amount under this Division as a result of being declared redundant.

  2. They begin a further period of continuous full-time service within one year of ceasing to be a member because of their redundancy.

  3. The Minister did not authorise the further period of continuous full-time service.

Application to Reservists: No.



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