RMIT University Academic and Professional Staff Enterprise Agreement 2014

32. Remuneration packaging


While the provisions of this clause are available to all employees, casual employees may only salary sacrifice superannuation contributions.


The University may decide to provide to an employee a remuneration package which involves the employee reducing part of their salary applicable under this Agreement, in return for non-cash benefits offered by the University. The remuneration package will require the employee to meet the full cost of the provision of such benefits and associated taxation, and administration costs, provided that any payroll tax savings will be passed onto the employee. Notwithstanding anything contained in this clause, the salary as specified in Schedules 1, 2 and 3 of this Agreement, will be used as the basis for calculation of the following entitlements: termination payments; including superannuation; annual leave and long service leave entitlements; retrenchment benefits; overtime and shift penalties; NTEU dues; annual leave loading entitlements.


Participation in the remuneration packaging scheme is voluntary. The value of the employee's remuneration package and its terms and conditions will be recorded in a written agreement between the University and the employee. A remuneration package agreement will be renegotiated annually, unless otherwise agreed between the University and the employee. An employee may be able to reduce up to 50% or, in the case of superannuation, up to 100% of her or his salary as part of a remuneration package. An employee may withdraw from a remuneration packaging agreement subject to providing one month’s written notice to the University.


If legislative or other changes result in increased cost of remuneration packaging to the University, the University may elect to terminate a remuneration packaging agreement with an employee, unless the employee elects to pay the additional cost (or increases the amount of salary sacrificed).


As the University is assisting its employees by providing the salary and benefits package, and recognising that the law and circumstances may change, and that the University may be relying on a third party to provide benefits, the University will not be responsible for any loss or disadvantage suffered by the employee arising from:

(a) the cessation of any benefits;

(b) any variation to the terms and conditions on which salary and benefits are provided, subject to the provisions of clause 32.3;

(c) the termination of an individual remuneration package by the employee in accordance with this clause;

(d) the University arranging for the third party to provide benefits to or for the benefit of the employee or an associate of the employee, unless such loss:

(i) directly arises from the terms and conditions of the agreement between the University and the third party; and

(ii) could have reasonably been foreseen and prevented by the University; and was beyond the control of the employee.


If a remuneration packaging agreement is discontinued, or if the employee's services with the University terminate, the University will be entitled to recover any payment of salary and benefits granted in advance, including by making deductions from an employee's salary or other monies payable upon the employee's termination.

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