|
Severance Payments in NSW |
 |
|
Until 31 December 2014, any employee made redundant and who previously worked under the NSW Transport Industry (State) Award will have an increased severance entitlement when compared to the remainder of the country. The effect of sub-clause 14.5 of the RTD Award, is that those NSW employees made redundant are entitled to the following severance payments:
|
Years of Service
|
Under 45 Years of Age Entitlement
|
Over 45 Years of Age Entitlement
|
|
Less than 1 year
|
Nil
|
Nil
|
|
1 year and less than 2 years
|
4 weeks pay*
|
5 weeks pay*
|
|
2 years and less than 3 years
|
7 weeks pay*
|
8.75 weeks pay*
|
|
3 years and less than 4 years
|
10 weeks pay*
|
12.5 weeks pay*
|
|
4 years and less than 5 years
|
12 weeks pay*
|
15 weeks pay*
|
|
5 years and less than 6 years
|
14 weeks pay*
|
17.5 weeks pay*
|
|
6 years and over
|
16 weeks pay*
|
20 weeks pay*
|
*"Weeks pay" means the all purpose rate for the employee concerned at the date of termination, and shall include, in addition to the ordinary rate of pay:
- over award payments,
- shift penalties and allowances paid in accordance with the relevant clauses of the awards
This means that both the amount of severance payment and the method of calculation, that is, the definition of ‘week’s pay’, is more generous in NSW than elsewhere. This arrangement will cease on 31 December 2014.
|