Remuneration Tribunal Determination 2012/10 - Compensation for Loss of Office for Holders of Public Office

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Determination 2012/10:
Compensation for Loss of Office for Holders of Public Office
This Determination governs compensation for loss of office for a holder of a public office.
The Determination comprises:
·         Part 1 – General;
·         Part 2 – Compensation for loss of office.
1.1         Authority:  This Determination is issued pursuant to sub-section 7(3) and 7(4) of the Remuneration Tribunal Act 1973.
1.2         Effective Date:  This Determination takes effect on and from 1 July 2012.
1.3         Effect on Earlier Determinations:  This Determination supersedes Determination 2007/07 – Compensation for Loss of Office for Holders of Public Office which ceased to have effect on 30 June 2012.
1.4         ‘Reference Salary’ means the Office Holder’s Total Remuneration, less the amount of the Employer's Superannuation Contribution for the Office Holder.
1.5         ‘Employer’s Superannuation Contribution’ has the same meaning as included in the relevant Principal Determination in relation to that Office Holder.
2.1     A person who holds public office is not entitled to compensation for loss of office under Clause 2.3 where:
          (a)      the person served the full term of appointment;
          (b)      the person was appointed on a part-time basis and is eligible for either a daily or annualised fee (rather than a base salary or other component of Total Remuneration, or a proportion thereof);
          (c)      the appointment was terminated prematurely for reasons of misbehaviour or unsatisfactory performance; or
            (d)        the appointment was terminated prematurely on account of mental or physical incapacity and the person is entitled to receive invalidity retirement benefits under Commonwealth superannuation legislation.
2.2     Subject to Clause 2.1, where a person’s appointment to a public office is terminated prematurely, the Commonwealth may elect to offer suitable alternative employment (including in a Commonwealth company or authority).
2.3     Where the Commonwealth does not offer alternative employment under Clause 2.2, the Commonwealth will pay the office holder 1/3 of one month’s remuneration per month of service remaining, in lieu of obligations such as provision of notice or payment instead of notice of redundancy pay and subject to:
          (a)      a minimum payment of four months’ remuneration; and
          (b)      a maximum payment of a year’s remuneration.
2.4      Under clause 2.3, the Commonwealth may calculate service remaining taking into account any period of continuing Commonwealth service in alternative employment, and may require an office holder to sign a release in return for the payment.
2.5     Where an office holder is eligible for a payment under clause 2.3, the rate of remuneration used for calculating an entitlement is the office holder’s Reference Salary.
Signed this 19th day of June 2012
              Signed       Signed

John C Conde AO
John B Prescott AC
Jillian Segal AM