Common use of Severance Entitlements Clause in Contracts

Severance Entitlements. 95.1 An employee whose employment is terminated by the Chief Executive Officer on the grounds that the employee is an excess employee is entitled to payment of a redundancy benefit of an amount equal to two weeks’ salary for each completed year of continuous service, plus a pro rata payment for completed months of service since the last completed year of service, or the minimum redundancy benefit to which the employee is entitled under the National Employment Standards (NES), whichever is greater. 95.2 The minimum redundancy benefit payable under this clause will be an amount equivalent to 4 weeks’ salary and the maximum redundancy benefit payable under this clause will be an amount equivalent to 48 weeks’ salary. 95.3 For the purposes of Clause 95.1: (a) the redundancy benefit will be calculated on a pro rata basis for any period where an employee has worked part-time hours during their period of service and the employee has less than 24 years full-time service; (b) the following categories of service will be taken into account in calculating an employee’s period of continuous service: (i) service with IBA; and (ii) government service as defined in section 10 of the Long Service Leave Act 1976; (iii) service with the Australian Defence Forces; (iv) Commonwealth service immediately preceding deemed resignation under the repealed section 49 of the Public Service Act 1922; or (v) service with another organisation where an employee was transferred from IBA to that organisation with a transfer of function, or an employee engaged by that organisation on work within a function is appointed as a result of the transfer of that function to IBA, and such service is recognised for long service leave purposes. (c) the period of continuous service of an employee: (i) for a person employed prior to 11 January 2012 ( the Commencement Date of the Indigenous Business Australia Enterprise Agreement 2012 - 2014), is determined by reference to sections 11 and 12 of the Long Service Leave (Commonwealth Employees) Act 1976; and (ii) for a person employed after 11 January 2012, is determined by reference to Part 2.2 Division 11 of the Fair Work Act 2009. Any period of prior service of an employee (which ceased by way of redundancy, retirement on the ground of invalidity, inefficiency or loss of qualifications, forfeiture of office, dismissal, termination of probationary appointment or temporary engagement for reasons of unsatisfactory service, or voluntary retirement at or above minimum retirement age applicable to the employee or with the payment of an employer-financed retirement benefit) will not count as service for redundancy pay purposes. 95.4 For the purposes of this Section, an employee’s salary will be the higher of: (a) the employee’s salary at their permanent classification level; or (b) the salary payable at a higher classification level where the employee has been temporarily performing work and has been paid at that higher classification level for a period of at least 12 months immediately preceding the date on which the Chief Executive Officer gave the employee notice of termination, and will include any other allowances in the nature of salary which are paid during periods of Annual Leave and on a regular basis, but excluding any allowances which are of a reimbursement nature.

Severance Entitlements. 95.1 102.1 An employee whose employment is terminated by the Chief Executive Officer on the grounds that the employee he is an excess employee is entitled to payment of a redundancy benefit of an amount equal to two weeks’ salary for each completed year of continuous service, plus a pro rata payment for completed months of service since the last completed year of service, or the minimum redundancy benefit to which the employee is entitled under the National Employment Standards (NES), whichever is greater. 95.2 102.2 The minimum redundancy benefit payable under this clause Clause will be an amount equivalent to 4 weeks’ salary and the maximum redundancy benefit payable under this clause Clause will be an amount equivalent to 48 weeks’ salary. 95.3 102.3 For the purposes of Clause 95.1102.1: (a) the redundancy benefit will be calculated on a pro rata basis for any period where an employee has worked part-time hours during their his period of service and the employee has less than 24 years full-time service; (b) the following categories of service will be taken into account in calculating an employee’s period of continuous service: (i) service with IBA; and (ii) government Government service as defined in section 10 of the Long Service Leave Act 1976; (iii) service Service with the Australian Defence Forces; (iv) Commonwealth service immediately preceding deemed resignation under the repealed section 49 of the Public Service Act 1922; or (v) service Service with another organisation where an employee was transferred from IBA to that organisation with a transfer of function, or an employee engaged by that organisation on work within a function is appointed as a result of the transfer of that function to IBA, and such service is recognised for long service leave purposes. (c) the period of continuous service of an employee: (i) for a person employed prior to 11 January 2012 ( the Commencement Date of the Indigenous Business Australia Enterprise Agreement 2012 - 2014)Date, is determined by reference to sections 11 and 12 of the Long Service Leave (Commonwealth Employees) Act 1976; and (ii) for a person employed after 11 January 2012the Commencement Date, is determined by reference to Part 2.2 Division 11 of the Fair Work Act 2009. Any period of prior service of an employee (which ceased by way of redundancy, retirement on the ground of invalidity, inefficiency or loss of qualifications, forfeiture of office, dismissal, termination of probationary appointment or temporary engagement for reasons of unsatisfactory service, or voluntary retirement at or above minimum retirement age applicable to the employee or with the payment of an employer-financed retirement benefit) will not count as service for redundancy pay purposes. 95.4 102.4 For the purposes of this Section, an employee’s salary will be the higher of: (a) the employee’s salary at their his permanent classification level; or (b) the salary payable at a higher classification level where the employee has been temporarily performing work and has been paid at that higher classification level for a period of at least 12 months immediately preceding the date on which the Chief Executive Officer gave the employee notice of his termination, and will include any other allowances in the nature of salary which are paid during periods of Annual Leave and on a regular basis, but excluding any allowances which are of a reimbursement nature.