RMIT University Academic and Professional Staff Enterprise Agreement 2014

25. Redundancy & redeployment


This clause applies to employees in continuing positions. Termination for reason of redundancy may only occur in accordance with this clause.

25.2 Grounds for Redundancy:


The University may make redundant one or more employee(s) for reasons of an economic, technological, structural or similar nature, including:

(a) a decrease in student load in any academic course or subject or combination or mix of courses or subjects conducted on one or more campuses;

(b) a decision to cease offering or to vary the academic content of any course or subject or combination or mix of courses or subjects conducted on one or more campuses;

(c) financial necessity within an organisational unit or cost centre; or

(d) changes in technology or work methods.

Where the University decides to terminate the employment of one or more employee(s) under this clause, the University will formally notify the employee(s) concerned in writing that their employment will terminate and will outline the reason(s) for the termination. An employee may be represented by a Chosen Representative in the redundancy process.

25.3 Notice and Severance


The notice period for an employee whose position has been declared redundant is 26 weeks.


An employee will be entitled to work out the first 8 weeks of his/her notice following declaration of their position as being redundant and will not be required to take payment in lieu of notice during this period. The University will have the option to require the employee to work from home during this 8 week component of the notice period.


After the 8th week of notice, an employee may request to work out all or part of his/her remaining period of notice. If there are suitable duties for the employee to undertake, which will result in sufficient work being available to occupy the time fraction on which the employee is employed, the University will use its best efforts to allow this to occur. This may be either work the employee has been engaged in previously or work designed to retrain the employee. If the University has no suitable duties for the employee to do, or at the employee’s request, the employee will receive payment in lieu of any outstanding notice.


The severance payment for an employee terminated by way of redundancy is determined by adding three weeks’ pay for each completed year of continuous service to a maximum period of 48 weeks.


An employee whose employment is terminated by way of redundancy will receive upon termination:

(a) payment in lieu of any un-worked portion of notice period prescribed in clause 25.3.1;

(b) severance payment as prescribed in clause 25.3.4, or when applicable 25.5.2; and

(c) payment on a pro-rata basis for long service leave regardless of length of service.


All payments under this clause will be calculated on the employee’s substantive salary, which consists of the base rate of pay plus any unconditional loadings, at the date of termination of employment.

25.4 Preserved Severance Calculation


Any professional staff employee who was employed at RMIT prior to the commencement of this Agreement will, on the day of commencement of this Agreement have a redundancy calculation generated using the redundancy provisions (clause 50.4) of the Royal Melbourne Institute of Technology Academic and Professional Staff Union Collective Agreement 2010.(Preserved Calculation).

The Preserved Calculation will not need to be generated until such time that the relevant employee is selected for redundancy or is invited to express an interest in voluntary redundancy.


Any professional staff employee who is made redundant and who has a Preserved Calculation may opt to be paid notice and severance entitlements either in accordance with the terms of 25.3 of this Agreement or may choose to be paid his/her Preserved Calculation.


A professional staff employee will lose the entitlement to opt for his/her Preserved Calculation if there is a cessation of his/her employment of any duration prior to the redundancy.


A professional staff employee may not opt to be paid his/her Preserved Calculation if he/she unreasonably rejects an offer of redeployment to a suitable position.

Note – Clause 50.4 of the Royal Melbourne Institute of Technology Academic and Professional Staff Union Collective Agreement 2010 is reproduced at Appendix 1 of this Agreement.

25.5 Redeployment


During the redundancy notice period, the University, taking account of the relevant skills, experience and work preferences of the employee, will:

(a) examine options for retraining;

(b) examine measures that could be taken to avoid termination;

(c) arrange counseling for the employee as required;

(d) monitor all vacancies within the University;

(e) offer the employee redeployment to a suitable vacant position where such a position exists; (Suitable vacant position means a position at the same classification level as the employee’s substantive position and which the employee has the skills and qualifications to undertake. A reasonable amount of time may be taken into account, if an employee needs to update skills and experience to undertake the duties of the position, but this will not normally be greater than 26 weeks.)

(f) consult with any Chosen Representative of the employee regarding items in this sub clause ; and

(g) provide the employee with all relevant details regarding the items in this sub clause.


Where the employee unreasonably rejects an offer of redeployment to a suitable vacant position, RMIT may terminate her or his employment on the basis of the severance benefit outlined in the table below.

Employee’s period of continuous service

Severance benefit

At least 1 year but less than 2 years

4 weeks

At least 2 year but less than 3 years

6 weeks

At least 3 year but less than 4 years

7 weeks

At least 4 year but less than 5 years

8 weeks

At least 5 year but less than 6 years

10 weeks

At least 6 year but less than 7 years

11 weeks

At least 7 year but less than 8 years

13 weeks

At least 8 year but less than 9 years

14 weeks

At least 9 years

16 weeks


During the redundancy notice period, the employee will be eligible for:

(a) Time without loss of pay to attend job interviews or other job search activities, subject to provision by the employee of documentary evidence of the activity; and

(b) Appropriate outplacement support.


If an employee is redeployed to a continuing position elsewhere in the University (ie. involving a geographic relocation) as an agreed measure to mitigate the effects of her or his position being surplus to requirements and, as a consequence, it is not reasonably practicable for the employee to remain in her or his existing residence, the employee will be entitled to all reasonable expenses associated with moving household to a new locality on the basis agreed between the University and the employee.


For academic staff, any reasonable costs and charges as determined by the Vice-Chancellor or nominee associated with a program of retraining as an agreed measure to mitigate the effects of her or his position being surplus will be reimbursed to the employee.


A professional staff employee who accepts redeployment to a position at a classification level lower than her or his previous substantive classification level, will receive salary maintenance at her or his previous substantive classification level for a period of six months if the employee is under 45 years of age, or for a period of 12 months if the employee is 45 years of age or over at the date of her or his transfer to a lower level position. Following this period the employee will be paid at the rate of pay applicable to the new position into which she or he has been redeployed.

25.6 Review


An employee may apply to the Vice-Chancellor within the first 8 weeks of the redundancy notice period for a review of the decision to terminate her or his employment by way of redundancy. The review will consider the following principles:

(a) Redundancy selection criteria must be fair and objective;

(b) Consultation requirements must be followed; and

(c) Redeployment opportunities must be properly explored.

This application will not delay any redeployment process.


An application will be referred to a Redundancy Review Committee normally within five working days of receipt of referral to investigate whether the process leading to the decision to terminate was in accordance with clause 25.6.1 above.


A Redundancy Review Committee established in accordance with this clause will consist of:

(a) an independent Chairperson;

(b) an RMIT employee nominated by the Vice-Chancellor; and

(c) a staff representative nominated by the NTEU.


A panel of independent Chairpersons will be established by the University by agreement with the NTEU. Chairpersons and panel members will be independent and command the confidence of management and staff.


The Vice-Chancellor will appoint a Chairperson from the panel when establishing a review process following agreement with the NTEU, ensuring that there is no conflict of interest. The NTEU will not unreasonably withhold agreement.


The employee may be supported or represented throughout the committee process by a Chosen Representative.


The Redundancy Review Committee will make a determination within 20 working days of the application being received.


If the Redundancy Review Committee determines that the University did not act according to all of the principles outlined in clause 25.6.1 above, the matter will be referred to the Vice-Chancellor for a decision as to the appropriate further course of action. The Vice-Chancellor must take into account the findings of the Redundancy Review Committee.

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