Resignation and retirement policy

Intent and objectives

This policy ensures that the management of separation of employment through resignation and retirement is appropriate, timely and fair, and conforms with all applicable workplace agreements and the contract of employment.

Scope

This policy applies to all fixed term and continuing staff members University wide.

Exclusions

This policy applies to resignation and retirement, but excludes separation of employment due to:

  • abandonment of employment
  • death
  • permanent disability
  • redundancy
  • redeployment
  • termination of employment due to disciplinary procedures

The policy does not apply to casual staff members.

Provisions

Resignation

Staff members may terminate their contract of employment by giving notice in writing to the University.

The notice period required will depend on a staff member’s position as detailed below.

Staff classification

Notice period

Executive staff

3 months

Academic and TAFE teaching staff

5 weeks

Professional staff (continuing or fixed term of 12 months or more)

4 weeks

Professional staff (fixed term of less than 12 months)

2 weeks

In special circumstances, the University may require a different period of notice, subject to a written agreement with the staff member and may waive or reduce the notice period (subject to the delegated authority approval).

If the staff member does not provide the required notice period, then the payment for the outstanding notice period will be deducted from the final payment.

References for resigning or retiring staff members

RMIT does not provide written references regarding the employment of staff members on departure.

However, Human Resources can provide a written statement of employment on request. This states the dates the staff member started with and departed from the University, and the position/s held.

If a manager receives a request for a verbal reference, they must advise the requester that any comments made are of a personal opinion and do not represent the University’s views.

A personal written reference must not be written on University letterhead.

Retirement

Under the Equal Opportunity Act 1995 there is no compulsory retirement age. However, there is a ‘preservation age’ for superannuation purposes. This refers to the requirement under the Superannuation Industry (Supervision) Act 1993 or its successor for the Commonwealth Government to legislate the age at which you can access the preserved component of your superannuation benefits (refer to preservation age under definitions).

Easing into retirement

RMIT supports voluntary early retirement for eligible staff members.

Easing into retirement gives staff the flexibility to plan for their retirement. It also gives the University time to plan for succession.

Continuing staff members who are eligible to retire – or will be eligible to retire within 12 months – may apply to convert their employment status to a fixed term contract of up to 12 months.

When an application is approved, the University will provide one of the following arrangements:

  • Converting to fixed term status at existing time fraction

An allowance equal to 10% of the staff member’s substantive salary will be paid to the staff member for the term of the fixed term contract. This allowance will be added to the staff member’s fortnightly salary and will be regarded subject to the relevant superannuation contributions.

  • Converting to fixed term status at reduced time fraction of no less than 0.4

A superannuation subsidy will be available to staff members who convert from a continuing status to a fixed term status at a reduced time fraction. Subject to the relevant superannuation fund’s approval, the University will make employer superannuation contributions that will maintain employer and staff member superannuation contributions at the rate applicable to the staff member’s former time fraction.

Staff members converting to a fixed term contract who are about to retire will not be entitled to voluntary departure packages or to severance pay.

Retirement gratuities

A gratuity is paid to acknowledge the retirement of a staff member who has served RMIT (or its predecessors) for at least 10 years. It is a way of providing for or contributing towards a gift in kind.

10-19 years service

$250 plus $11 for each completed year of service over 10 years (includes GST)

20-30 years service

$500 plus $11 for each completed year of service over 20 years (includes GST)

Over 30 years service

$750 (includes GST)

The cost of the gratuity is to be met from local budgets and cannot be in the form of a cash payment.

Termination of employment due to ill health

The University may initiate a medical examination to assess a staff member’s fitness for duty. If the examination reveals that the staff member is unable to perform their duties and is unlikely to resume them within a reasonable period (that is, within 12 months), the Vice-Chancellor may terminate the staff member’s employment. For further details refer to the fitness for duty procedure. The termination must be in accordance with the notice required by the staff member’s employment contract.

Before terminating the staff member’s employment, the Vice-Chancellor may offer the staff member the opportunity to submit a resignation.

If the staff member does so, the University will accept the resignation and not terminate the employment.

Exit interview

A staff member who has given notice to terminate their employment contract will be offered to undertake an exit interview or exit survey. This will either be conducted on-line or face to face by Human Resources. The exit interview provides the departing staff member with an opportunity to inform improvements of the working experience at RMIT.

RMIT will monitor exit interview data and track any trends with regards equal opportunity commitments. Retention strategies will be implemented as required in order to support retaining diverse talent.

Return of University Property

It is the manager’s responsibility to ensure the University’s property is returned from any staff member prior to their departure from the University. For further details, refer to the University property on loan procedure.

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