Document ID: chunk:federal_register_of_legislation:C2009A00007:clause:1_42s
Version: federal_register_of_legislation:C2009A00007
Segment Type: clause
Provision Reference: sch 1 cl 42S
Character Range: 25110–27195

42S  Unemployment resulting from a voluntary act or misconduct

 (1) A participation payment is not payable to a person for the period mentioned in subsection (3) if the Secretary determines that:
 (a) the person is unemployed as a result (whether direct or indirect) of a voluntary act of the person; or
 (b) the person is unemployed as a result of the person's misconduct as an employee.

Note: The Secretary may continue the participation payment pending the outcome of an application for review (see sections 131 and 145 of the Administration Act).

Limitations on determination

 (2) Despite paragraph (1)(a), the Secretary must not make a determination under that paragraph if the Secretary is satisfied that the voluntary act was reasonable.

Period of non‑payment

 (3) The participation payment is not payable to the person for the period (the unemployment non‑payment period) of 8 weeks beginning on:
 (a) the day that the person becomes unemployed as a result of the person's voluntary act or misconduct; or
 (b) if the person is receiving a participation payment at the time of the voluntary act or misconduct—the first day of the first instalment period that begins after the day the Secretary makes the determination, if the Secretary considers that day is more appropriate than the day mentioned in paragraph (a).

Note 1: The Secretary may end an unemployment non‑payment period under subsection (4).

Note 2: For the day the Secretary makes the determination, see section 42Y.

Ending unemployment non‑payment periods

 (4) The Secretary may end a person's unemployment non‑payment period if:
 (a) the Secretary determines that serving the unemployment non‑payment period would cause the person to be in severe financial hardship; and
 (b) the person is in a class of persons specified by legislative instrument under subsection (5).

Note: For in severe financial hardship see subsection 14A(7) of the 1991 Act.

 (5) For the purposes of subsection (4), the Secretary may, by legislative instrument, specify a class of persons.

Subdivision F—General provisions