Termination of ACTPS Liability for APS Redundancy Payments

Advice Statement
Advice No. 4/2009
Issued: June 2009
ACT PUBLIC SECTOR
Termination of ACTPS Liability for APS Redundancy Payments
• Directors-­‐General
• HR Managers
• Shared Services
PURPOSE
1. To provide advice to agencies in relation to ACT Public Service (ACTPS or ACTGS)
liability for Australian Public Service (APS) redundancy payments.
BACKGROUND
2. At the time of separation of the ACTPS from the APS a set of arrangements were
agreed on the management of staff that moved between the services. These were
published in the Mobility Arrangements for Officers of the APS and the ACTGS1. One
issue covered by the arrangements was the way in which ACTPS and APS service was
recognised for redundancy severance benefit purposes in each service. Clauses 1.55
– 1.57 of the arrangements stated that:
“The Commonwealth recognises any continuous period of ACTGS-­‐Commonwealth
service for redundancy purposes for all staff who transferred to the ACTGS on 1 July
1994, whether they joined the ACTGS from the APS or from a territory owned
authority, until their appointment to the APS.
The Commonwealth will not recognise any prior service for redundancy purposes for
staff who join the ACTGS on or after 1 July 1994 and who are subsequently appointed
to the APS. However, if such an officer later receives a redundancy payment from the
APS, the ACTGS will pay the officer the difference between the amount paid by the
APS and the amount he/she would have received if the ACTGS service was recognized
by the APS.
Where an APS officer is appointed to the ACTGS, the ACTGS recognises any
continuous prior service with the APS for redundancy purposes in the ACTGS.”
Chief Minister and Treasury | Canberra Nara Centre
GPO Box 158 Canberra ACT 2601 | phone: 132281 | www.act.gov.au

3. The arrangements were given effect in the Public Sector Management Standards
1994 (the first standards) Part 11, Chapter 7 from 1 July 1995, and subsequently
through an amendment to the first standards on 25 August 1999 which clarified the
Territory’s liability in respect of APS redundancy severance payments i.e. in respect
of ACTPS service only, and the mechanism by which such payments could be made.
4. This provision was subsequently translated to section 495 of the Public Sector
Management Standards 2006 (the standards) as below:
“The Chief Executive may approve a special payment in respect of former ACTPS
employees who joined the ACTPS after 1 July 1994, later left and joined the APS
without a break in service and subsequently accept a voluntary redundancy from the
APS.
The payment is in respect of ACTPS service only.
The special payment should be made to the relevant Commonwealth agency
following receipt of full calculations and evidence that the Commonwealth agency
has made the payment to the former officer.
The special payment should be calculated in accordance with the Employment
conditions ACT Public Sector Award 2000.”
5. The likely intent of this arrangement was to ensure that officers who joined the
ACTPS after 1 July 1994 and subsequently transferred to the APS were not
disadvantaged, in relation to redundancy payments, when compared to officers who
moved to the ACTPS from the APS prior to 1 July 1994.
6. Section 495 of the standards, potentially placed an indefinite obligation on the
Territory to authorise payments in respect of former ACTPS officers made redundant
by the APS. However, the time during which officers would be unnecessarily
disadvantaged by the establishment of the ACTPS and movement between ACTPS
and APS employment has passed. Further, this arrangement places an unreasonable
ongoing financial liability on the Territory, which may not have been anticipated at
the time of introduction of the provision.
7. In light of this ongoing liability, the Chief Minister agreed to end existing
arrangements for redundancy payments to former ACTPS officers, through an
amendment to the standards. Disallowable Instrument DI2009-­‐89, which came into
effect on 10 June 2009, amends the standards by removing section 495, thereby
removing the Chief Executive’s power to authorise payments in respect of APS
severance benefits and ending the Territory’s potential future liability for payments
of this nature.

8. The amendment does not affect:
a) calculation of redundancy severance payments for ACTPS officers with prior APS
service;
b) current Commonwealth arrangements where an APS employee was transferred
to the ACTPS on 1 July 1994 and subsequently rejoined the APS; the
Commonwealth recognizes all APS and ACTPS service for redundancy purposes
provided normal APS continuity of service tests are met; or
c) officers who work in APS agencies where ACTPS service is recognized for the
purposes of severance benefit payments through an industrial agreement.
9. Persons seeking advice from ACTPS agencies regarding contribution to an APS
redundancy severance benefit in relation to prior ACTPS service should be advised
that arrangements for the ACTPS to contribute to APS redundancy payments were
terminated through amendment to the Public Sector Management Standards 2006
on 10 June 2009.
10. The Public Sector Management Group (PSMG), Chief Minister’s Department will
continue to undertake a central monitoring role in respect of this matter. Agencies
are requested to advise PSMG of any formal requests for the ACTPS to contribute to
an APS redundancy payment. PSMG will also be able to provide additional guidance
to agencies about how best to respond to a particular request and/or whether
further legal advice may be required.
11. The contact officers are the Senior Manager, Employment Policy (620 75995) or the
Senior Policy Officer (620 52664).
APPROVAL AUTHORITY
Catherine Hudson
Commissioner for Public Administration
June 2009
Document Name: Termination of ACTPS Liability for APS Redundancy Payments
Prepared by: Senior Manager, Workplace Relations, Office of Industrial Relations
Version: Number 1
Feedback to: oir@act.gov.au
Issue Date: June 2009