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Part 6: Deliberately differentiated offer for members

3.6.1 Overview

  1. This Part has the following purposes.

    1. To facilitate the following outcomes.

      1. The member who is critical to capability is retained.

      2. A position critical to capability is no longer at risk.

      3. The Defence factors that influenced the member to consider leaving the ADF are weakened.

      4. A succession plan to address the workforce capability gap is implemented.

      5. A critical workforce capability gap is resolved.

    2. To provide a selection of incentives that may be used to retain a member.

  2. The deliberately differentiated offer is a management-initiated retention measure. Members may not apply for a deliberately differentiated offer.

  3. This Part is not intended to be used as a talent or career management tool. It should not be used to address issues of equity and flexible work arrangements as targeted special measures are already available for these issues.

3.6.2 Definitions

For the purpose of this Part, the following definitions apply.

Definitions

Term

Definition in this Part

member critical to capability

means a member for whom the CDF decides all the following circumstances exist.

  1. The loss of that member would significantly impact on ADF strategic or operational capability.

  2. The member's skills, knowledge or qualifications cannot be readily replaced in the immediate future.

  3. The member has demonstrated consistent high performance.

position critical to capability means a position that is essential to strategic or operational capability of the ADF and requires a particular set of skills, knowledge or qualification.
Failure to fill the position impacts negatively on delivery of Service capability.
agreed period of service means the period the member has agreed to serve in the position for which the deliberately differentiated offer is made. It is notified to the member using the form at Annex 3.6.A.
workforce capability gap means the gap between the current and required capability of the workforce.

Persons who can make the decision under section 3.6.2, definition of member critical to capability on behalf of the CDF:
Director General Navy People
Director General Personnel – Army
Director General Personnel – Air Force

3.6.3 Member this Part applies to

For this Part, the member must meet all of the following conditions.

  1. The member is either of the following.

    1. A member of the Permanent Forces.

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

    3. A member of the Reserves on continuous full-time service.

    4. Note: In the total workforce model, a member of the Reserves on continuous full-time service may be described as a member in Service category 3, 4 or 5 and Service option C.

  2. The member is a member critical to capability.

    See: Section 3.6.2, Definitions

3.6.4 Situations that delay service

A member who is offered a deliberately differentiated offer under this Part cannot start their agreed period of service if any of the following circumstances apply to them.

Note: This means a member may accept an offer and benefits may start, but their agreed period of service only starts after they stop being in any of these situations.

  1. The member is not on paid service.

    Example: A member on leave without pay.

  2. The member is subject to an undertaking for further service under Part 8 of the Military Superannuation and Benefits Act 1991 (as preserved by item 4 of Schedule 4 Defence Legislation Amendment Act (No. 1) 2005).

  3. The member has any of the following liabilities.

    1. An initial minimum period of service under Defence (Personnel) Regulations 2002.

      Exception: An undertaking for further service associated with a promotion to a rank below Brigadier.

    2. A return of service obligation under Defence (Personnel) Regulations 2002.

    3. An undertaking for further service under Defence (Personnel) Regulations 2002. This includes members promoted to a senior officer rank.

    See: Defence (Personnel) Regulations 2002

  4. The member is on Reserve service.

    Note: Reserve service does not include continuous full-time service.

  5. Note: In the total workforce model, a member on Reserve service may be described as a member in Service category 3, 4 or 5. A member on Service option C is not a member on Reserve service.

3.6.5 Considerations before an offer is made

  1. Before deciding that a member is to be given a deliberately differentiated offer, the CDF must have regard to the following circumstances.

    1. Whether the member has applied, or is expected to apply, to transfer to the Reserves in their Service under the Defence (Personnel) Regulations 2002.

      See: Defence (Personnel) Regulations 2002, Chapter 8 Part 1 Division 2 (Voluntary transfer of members)

    2. Whether the member has applied, or is expected to apply, to voluntarily terminate their Service under the Defence (Personnel) Regulations 2002.

      See: Defence (Personnel) Regulations 2002, Chapter 9 Part 3 (Voluntary termination of service)

    3. Whether the member has undertaken, or is expected to undertake, a further period of continuous full-time service in the position.

    4. Note: In the total workforce model, a member on continuous full-time service may be described as a member in Service category 6 or 7. A member who is in Service category 3, 4 or 5 and Service option C is also on continuous full-time service.

    5. Whether the member has indicated that they are unwilling to remain in or move to a position critical to capability.

  2. Before deciding which benefits in this Part to include in the deliberately differentiated offer made to the member, the CDF must consider the following matters, if relevant.

    1. Any evidence that failure to retain the member will cause a workforce capability gap.

    2. The manner in which the current and future duties of the member support capability.

    3. Whether the member holds skills, knowledge or qualifications that are essential to the delivery of Service capability.

    4. The required period of service to assist succession in the position.

    5. The anticipated timeframe to backfill the position if the member were to leave the Permanent Forces or resign from the ADF.

    6. The potential for the succession plan developed by the Service career management agency to address the position critical to capability or workforce capability gap within the agreed period of service of the deliberately differentiated offer.

    7. Any factors that could reduce the negative impact to capability.

    8. The member's professional and personal situation, and what types of incentives would encourage the member to continue serving in the position for the agreed period of service.

    9. Any external organisation's offer of employment to the member.

    10. The flexible working arrangements that the member may wish to access in the position.

      See: Military Personnel Policy Manual, Part 7 Chapter 6, Flexible work arrangements for members of the Australian Defence Force

    11. Any other relevant matter.

3.6.6 Deliberately differentiated offer

  1. The benefits in an individual member's deliberately differentiated offer are worked out in accordance with this section.

  2. The deliberately differentiated offer may include any of the benefits outlined in the table below.

    Benefits
    Item The following benefit... may be made available from... until...

    1.

    Home purchase and sale assistance may be provided after the normal time period for eligibility has expired.

    1. Reimbursement of the costs of sale of a home may be considered after the two year time period in subsection 7.3.23.1 has lapsed.

    2. Reimbursement of costs of purchasing a home may be considered after the four year time period in paragraph 7.3.23.5.b has lapsed.

    See: Chapter 7 Part 3, Home sale or purchase

    a date specified by CDF

    the expiry of the agreed period of service.

    2.

    Removal assistance which may include a removal and associated benefits to a personal location where benefits are provided, or to another residence within location, outside the normal limits on assistance.

    1. In circumstances other than compassionate circumstances.

    2. Above normal cost limits.

    See: Chapter 6 Part 5, Removals and storage

    a date specified by CDF

    either of the following dates.

    1. The expiry of the agreed period of service.

    2. A date specified by CDF.

    3.

    Allocation of a Service Residence or rent band choice home, at or above the member's rank and bedroom entitlement. The following conditions apply.

    1. The higher contribution scheme at section 7.6.43 does not apply to this benefit.

    2. The approved rent band or additional bedroom is to be specified as part of the offer.

    See: Chapter 7 Part 6, Service residences

    a date specified by CDF

    the earlier of the following dates.

    1. The date the member vacates the residence.

    2. A date specified by CDF.

    4.

    An increased rent ceiling. The following conditions apply.

    1. Increased rent ceiling may be provided for reasons not specified in section 7.8.12.

    2. The ceiling may be increased up to an amount approved by CDF.

    3. The approved rent ceiling is to be specified as part of the offer.

    See: Chapter 7 Part 8, Rent allowance

    a date specified by CDF

    the earlier of the following dates.

    1. The date the member vacates the residence.

    2. A date specified by CDF.

    5.

    An additional number of trips in any of the following types of travel for which the member is currently eligible.

    1. Reunion travel under Chapter 9 Part 3 Division 4.

    2. Student reunion travel under Chapter 9 Part 3 Division 5.

    3. Recreation leave travel under Chapter 9 Part 4 Division 1.

    4. Remote location leave travel under Chapter 9 Part 4 Division 4.

    See: Chapter 9, ADF travel in Australia

    the date the agreed period of service begins

    either of the following dates.

    1. The expiry of the agreed period of service.

    2. An earlier date specified by CDF.

    6.

    A specified number of days of additional paid leave. The following conditions apply.

    1. Leave may be granted for up to 20 days for each 12 month period of the agreed period of service.

    2. The leave days are in addition to the member's normal leave accrual.

    3. The leave is non-accruable and expires at the end of each 12 month period.

    4. The leave is to be recorded as if it were short absence, but is not short leave from duty. Payment instead of leave is not available for this leave.

    Note: Managers continue to have discretion to approve various leave types but must consider the impact on other leave accruals.

    the date the agreed period of service begins

    either of the following dates.

    1. The expiry of the agreed period of service.

    2. An earlier date specified by CDF.

  3. CDF may choose which of the benefits listed in subsection 2 are to be offered to an individual member after considering the circumstances and matters listed in section 3.6.5.

  4. The period of each benefit is worked out using the relevant guidance in column 3 and 4 of the table in subsection 2.

  5. A retention bonus may also be offered under Part 5 Division 2, Bonus Framework, at the same time as the deliberately differentiated offer.

    See: Part 5 Division 2, Bonus Framework

  6. The deliberately differentiated offer may set out flexible working arrangements provided by Defence.

  7. CDF must notify the member of the deliberately differentiated offer using the form at Annex 3.6.A. The form must set out the benefits and the detailed dates of duration for each benefit.

Persons who can make the decision under section 3.6.6 on behalf of the CDF:
Director General Navy People
Director General Personnel – Army
Director General Personnel – Air Force

3.6.7 How the offer is accepted

  1. The member may accept the offer under this Part any time after they receive it, until the latest of the following dates.

    1. Twenty-eight days after the day the offer is made.

    2. A longer period that the CDF decides is reasonable, having regard to the member's circumstances.

  2. An acceptance made under this subsection must be on the form at Annex 3.6.A.

    See: Annex 3.6.A, Deliberately differentiated offer form

  3. The acceptance must include an undertaking to serve for the period of the agreed period of service, using the form at Annex 3.6.A.

Persons who can make the decision under paragraph 3.6.7.1.b on behalf of the CDF:
Director General Navy People
Director General Personnel – Army
Director General Personnel – Air Force

3.6.8 Member does not complete the period of agreed service

  1. On a day that a member ceases to complete their agreed period of service, they cease to be eligible for benefits under this Part.

  2. The member is not required to repay the benefits in their deliberately differentiated offer if the member fails to complete the agreed period of service.

    Note: A member who fails to complete their agreed period of service in relation to a retention bonus may be required to repay an amount of the bonus. Any repayment is worked out in accordance with the rules that apply to the relevant bonus scheme.

    See: Part 5 Division 2, Bonus framework