Source: https://www.defence.gov.au/PayAndConditions/ADF/Chapter-3/Part-5/Div-2.asp
Timestamp: 2019-11-19 17:39:29
Document Index: 507298486

Matched Legal Cases: ['art 5', 'art 3', 'art 3', 'art 8', 'art.\n3', 'art 5']

Division 2 - Bonus framework : Part 5 : Department of Defence
Division 2 - Bonus framework
3.5.4 Purpose
This Division intends to provide the following outcomes.
It sets out a single framework for benefits paid in the form of a retention bonus under section 58B of the Defence Act 1903.
Members in individual positions necessary to capability in a critical trade or work unit are retained.
Reduction of personnel numbers to levels below that required to sustain operational or supporting capability is prevented.
Members are retained in individual positions critical to their Service's capability.
3.5.5 Some concepts used in this Division
An agreed period of service is a period of up to three years which the member agrees to serve in a specified position, employment category or primary qualification in return for a bonus under this Division.
A position requirement cannot be met with fit, trained and available personnel, within respite rules.
Failure to meet the position requirement impacts negatively on delivery of Service capability.
A workforce structure shortage is critical when some or all of the recruiting, retention, training throughput, strength and future health elements of the employment category combine so that the shortage in numbers is unlikely to recover within five years.
3.5.6 Member eligible for a bonus
A member's is eligible for a retention bonus under this section if the member meets all of the following conditions.
The member is offered a retention bonus.
They are a member of the Permanent Forces or a member of the Reserves on continuous full-time service.
The member has completed their initial minimum period of service.
See: Chapter 1 Part 3 Division 1 section 1.3.29A, Initial minimum period of service
The member is not on a return of service obligation.
See: Chapter 1 Part 3 Division 1 section 1.3.69, Return of service obligation.
3.5.7 Member who is not eligible for a bonus
The member is medically unfit for service and the unfitness is expected to continue for a period of two years or more.
The member has less than two years to serve until the end of the member's fixed period of service.
Exception: The CDF has extended the member's fixed period of service to cover the period of service required for the bonus.
The member has less than two years to serve until the latter of the following days.
The last day that the CDF has allowed the member to serve beyond the member's retirement age.
See: Paragraph 23(2)(b) of the Defence Regulation
The member has been given a notice for the purpose of termination under subsection 24(2) of the Defence Regulation.
3.5.8 Offer of a bonus
The CDF or the member's Service Chief may determine the following, having regard to the factors provided under section 3.5.9.
A bonus up to a maximum of $100,000 for the period of service determined under paragraph b.
A fixed period of service to be performed by the member between one and three years.
Note:The determined period of service must not include any past periods of service.
The offer of a bonus determined under subsection 1 may be made by the following positions.
If determined by the CDF—any of the following.
Chief of Staff – ADF Headquarters.
Director General Navy People.
Director General Army People Capability.
Director General Personnel – Air Force.
If determined by the Chief of Navy—Director General Navy People.
If determined by the Chief of Army—Director General Army People Capability.
If determined by the Chief of Air Force—Director General Personnel – Air Force.
Note: This does not prevent the CDF or Service Chief from making the offer to the member.
3.5.9 Factors that are considered before a bonus is offered
The CDF or Service Chief must consider the following matters before determining a bonus to a member.
Any evidence that there is a workforce structure shortage that is critical in the member's employment category.
Any evidence that the number of personnel in the member's employment category or specialisation is falling.
Whether the position that the member fills is essential to the delivery of the Service's capability.
Whether the member holds qualifications and skills that are essential to the delivery of Service capability.
Whether the member has applied to achieve qualifications and skills that are essential to the delivery of Service capability.
Any evidence about the period of the workforce shortage that the position, employment category or specialisation that the offer is affected by.
Any actions that have been taken to remedy the workforce shortage in the longer term.
Any evidence of productivity improvement linked to the payment of the bonus.
3.5.10 Effective service for the purpose of the bonus
The member's agreed period of service must be served as effective service.
For the purpose of this Division, effective service means service that meets all these conditions.
It is continuous full time service.
It is counted as a period of effective service under subsection 3.
This table lists a range of leave types and activities and sets out how a period of that leave or activity counts toward member's period of effective service.
Examples: Recreation leave, full pay long service leave. The whole period of this leave counts as effective service.
Examples: Leave without pay, maternity leave without pay
5. A period when the member is discharging an undertaking for service for the purpose of another bonus payment under this Division. The period counts as effective service only toward the earlier undertaking.
6. Unpaid leave for 21 calendar days or more.
The period for which the member is in this situation does not count as effective service.
7. Absence without leave.
8. Imprisonment, detention or suspension from duty without pay.
9. An undertaking for further service under Part 8 of the Military Superannuation and Benefits Act 1991, as preserved by item 4 of Schedule 4 Defence Legislation Amendment Act (No. 1) 2005.
10. A period when the member is discharging a return of service obligation.
11. A period when the member is discharging an undertaking for service for the purpose of another bonus payment under this Part.
3.5.11 How the offer is accepted
A longer period that the CDF or the member's Service Chief decides is reasonable having regard to the member's circumstances.
A member must take both the following actions to accept an offer.
Accept the offer using the acceptance form at Part B to Annex 3.5.B.
See: Annex 3.5.B, Bonus framework form
Elect how the benefit is to be paid, using the form at Annex 3.5.J.
The acceptance must include an undertaking to serve for the period specified in the offer, (a fixed period of up to three years of effective service) in the position, specialisation or employment category for which the bonus was offered (this is called the agreed period of service), using the form at Annex 3.5.B.
3.5.12 Transfer in from another bonus
A member who is serving on another bonus scheme contained in Chapter 3 Part 5 of this Determination ('the other scheme') may be offered a bonus under this Division.
If the other scheme has a completion bonus and the member will not complete their agreed period of service under that scheme, the member may receive a pro rata amount for the period they have completed under the other scheme. The pro rata payment is calculated as follows.
Work out the number of calendar days in the period.
The period starts on the day the member is taken to start their undertaking to serve under the other scheme.
The period ends on the day before the date the member commences serving under this scheme.
2. Work out the number of days of ineffective service in the period in Step 1.
4. Divide the outcome of Step 3 by 365 for each year of the agreed period of service under the other scheme. If the period includes 29 February, add an additional day.
Example: If the other bonus was for a two year period divide by 730. If the period includes 29 February, divide by 731.
5. Multiply the outcome of Step 4 by the bonus amount the member would have received under the other scheme.
6. The member may be paid the outcome of Step 5.
Example: A member joined the other scheme on 12 January 2009. On 5 August 2010 the member commences service under this bonus scheme. The member had 25 days of leave without pay in December 2009. The bonus amount the member would have received if they had completed a three year period of service under the other scheme is $15,000.
1. There were 571 calendar days between 12 January 2009 and 5 August 2010.
3. 571 – 25 = 546 calendar days
4. 546 divided by 1095 = 0.4986301
5. 0.4986301 multiplied by $15,000 = $7479.45.
6. The member may be paid $7479.45.
3.5.13 Payment of the bonus
A retention bonus becomes payable to an eligible member when the member has submitted both forms required under subsection 3.5.11.2.
Annex 3.5.B, Bonus framework form
3.5.14 Member leaves scheme
The member is not required to repay the bonus when the member fails to complete their agreed period of service under this Division for any of the following reasons.
The CDF or the member's Service Chief determines that the member's reason for ceasing to serve is beyond the member's control.
The CDF transfers the member from the Permanent Forces to the Reserves under section 16 of the Defence Regulation .
Note: In the total workforce model, the Permanent Forces may be said to comprise members in Service categories 6 and 7. The Reserves may be said to comprise members in Service categories 2, 3, 4 and 5.
The member is not required to repay the bonus if they complete their agreed period of service but not in the agreed position, employment category or specialisation when any of the following circumstances apply.
The member transfers to another position, employment category or specialisation due to a restructure.
The member's Service initiates the member's transfer to another position, employment category or specialisation.
The member is promoted and so must leave the agreed position, employment category or specialisation.
A member will be required to repay the full amount of a retention bonus if they fail to complete their agreed period of service for any of the following reasons.
The member voluntarily leaves the employment category or specialisation for which the bonus was offered.
The member voluntarily transfers out of the Service.
The member voluntarily transfers to the Reserves.
The member voluntarily applies to terminate service in the Permanent Forces.
The member's service is terminated for performance or disciplinary reasons.