Paid work as an approved mutual obligation requirement 001-09070070

Job seekers who are doing or expected to commence sufficient paid work to fully satisfy their mutual obligation requirements, may approach Services Australia about having their requirement approved so they do not have to participate in employment services and do other activities like looking for work.

Alternatively, Service Officers should try to identify job seekers who could possibly have paid work approved and become Centrelink managed.

An activity and action item will automatically generate on a job seeker's record to prompt Service Officers to consider approving the requirement when the job seeker:

• is a principal carer parent (PCP), or
• is assessed as having a partial capacity to work (PCW), (this includes a Youth Allowance (YA) job seeker who is an Early School Leaver (ESL) and assessed as having a PCW), or
• is assessed as having a temporary reduced work capacity (TRWC) of 15 hours or more per week, or
• is in receipt of Carer Allowance (CA), or
• is mature aged 55 years or over (MA55+), and
• has been reporting employment income with at least 30 hours and an assessable income at or above the national minimum wage for the last 3 consecutive fortnights

The action item is as follows, 'Customer's recent earnings suggest employment may be approved as meeting mutual obligation requirements. If approving, update Activity and Exemptions Summary (AEX) screen. Once the update is finalised or has undergone the QMA checking process, determine if a Job Plan update is required. Do not update the Job Plan if the customer is an Inclusive Employment Australia (IEA) Post Placement Support or Ongoing Support participant'.

If the job seeker:

• has full-time mutual obligation requirements (70 hours per fortnight), do not code PTW on the AEX screen. Advise the job seeker to discuss their employment with their provider. Procedure ends here
• is eligible to have PTW activity coded or extended to fully meet their part-time mutual obligation requirements, go to Step 2
• has PTW activity currently coded on the AEX screen, go to Step 4
• no longer meets the approved PTW activity requirement, go to Step 6
• advised via their fortnightly report they have ceased PTW activity requirement or has a reasonable excuse, see Table 2 > Step 5

Service Officers are required to:

• determine what actions is required depending on the job seeker's circumstances
• apply the criteria for paid work to satisfy mutual obligation requirements
• check the job seeker's declared earnings meets the national minimum wage

Note: more information about the national minimum wage is on the Fair Work Ombudsman website. Rates quoted in the information section of this site relate to workers 18 years or older. Other rates, like junior rates, are listed in the fact sheets for relevant years on the website. See the Resources page for a link to the website.

Go to Step 3.

Take the following actions based on the job seeker's circumstance:

• Eligible to have PTW approved or extended (including first time approvals), as doing paid work for at least 30 hours per fortnight, go to Step 7
• Eligible to have a combination of:
  • paid work
  • self-employment
  • activities such as study or voluntary work for at least 30 hours per fortnight
  • go to Step 7
• ZALL_JSK_PLN with relevant keyword or activity details:
  • for 'Approved activity and Job Plan review', or 'Failed online - Mutual Obligation and Job Plan', see Table 2 in Approved Activity Review Job Plan Contact. Procedure ends here
  • for keywords WAPDHSM, CICAEX, or ERRAEX, see Table 2 in Job Seeker Management Activities. Procedure ends here

Department of Employment and Workplace Relations (DEWR) will advise Services Australia once the part-time work (PTW) activity is approved by the provider. The following details will be recorded on the job seeker's record:

• The relevant activity code, start and end dates on the Activity and Exemptions Summary (AEX) screen
• Details of who the activity was approved by on the Source field on the AEX screen:
  • Manual: Centrelink approved
  • Activity Test: Provider approved

The Centrelink Job Plan must be negotiated when the PTW activity is coded on the AEX screen. This is whether it is approved by the provider or Services Australia. If the job seeker is Inclusive Employment Australia (IEA) managed, go to Step 15.

Has the Centrelink Job Plan been negotiated with the current PTW activity included?

• Yes, procedure ends here
• No, go to Step 5

ZALL_JSK_MFU with WAPFMRP and FMRPTW keyword:

This work item is created when:

• the PTW activity has been approved by Centrelink or the provider ,and
• action is required to prompt a Service Officer to negotiate a Centrelink managed Job Plan

Where identified this action must be taken while in contact with the job seeker. This work item will automatically complete in any of the following scenarios:

• A WAP/PLN activity has been completed for a finalised Job Plan workflow with the PTW approved activity code
• An activity is completed through Assessment Results (AR) screen resulting in:
  • the job seeker no longer having mutual obligation requirements
  • a benefit cancellation on or before system creation date
  • the approved activity on the AEX screen being updated or deleted (no longer fully meeting requirements through PTW activity)
  • a future dated benefit cancellation

Go to Step 10.

The paid work activity does not meet the requirements and cannot be approved. The job seeker may need a referral to an employment services provider if they are not already connected. Providers are responsible for negotiating and maintaining the Job Plan for a provider managed job seeker. Tell the job seeker the decision and record details of the decision and conversation within a closed DOC.

If PTW was previously coded and no longer meets requirements, staff must end date the PTW activity on the AEX screen appropriately. The activity end date is the date the customer no longer meets the PTW activity requirements.

Investigate other approved activities for the job seeker.

Procedure ends here.

For both Centrelink managed and provider managed job seekers with part-time mutual obligation requirements, record the paid work as an approved activity.

• Consider the correct start date to use when recording the approved activity, as this could affect their ability to use self service reporting
• Activities can be recorded on the AEX screen with a start date of up to 2 weeks in the future. Once the requirement start date is reached, the self service reporting system will expect the required hours to be declared for each fortnight
• If the job seeker has only commenced work part way through the first fortnight, they will not normally be declaring sufficient hours. They will be:
  • transferred to a Service Officer (if using phone self service), or
  • asked to contact the agency to have the report finalised

Record the approved paid work mutual obligation requirement on the AEX screen using the code 'PTW' (Part-time Work):

• Code 'PWS' (Paid Work and Self Employment (Combined)) on the AEX screen if the job seeker is doing a combination of suitable paid work and self-employment. Anytime self-employment is considered, the Service Officer must first code details on the Real Estate/Business Details (REBS) screen
• Code 'YAC' (Youth Activities) on the AEX screen for a Youth Allowance (YA) job seeker who is:
  • an Early School Leaver (ESL), and
  • assessed as having a partial capacity to work, and
  • doing paid work of at least 15 hours per week at the national minimum wage.
    Do not use 'PTW' or 'EPT' (Part-time Work (Early School Leavers)) activities, as this will cause the error 'E025JS - Code not valid for Early School Leavers' to display
• Code 'VPE' (Voluntary and Paid Work) on the AEX screen for:
  • mature age job seekers aged 55 years or over, or
  • principal carers, or
  • assessed as having a partial capacity to work (PCW), or
  • receiving Carer Allowance (CA), and
  • doing a combination of voluntary and paid work for a total of 30 hours per fortnight
  • job seekers completing the Approved Activity End Date Review (AAR) Online Task for their voluntary work activities, see Voluntary work as an approved activity
• Code 'SPW' (Study and Paid Work (Combined)) on the AEX screen for principal carers doing a combination of part-time work and approved study

The approved activity period can only be coded for a maximum of 364 days at a time, inclusive of the start and end dates. This means, the activity end date is equal to the activity start date + 363 days.

To record an approved activity in Process Direct:

• Go to the AEX screen
• Select the + symbol at the top of the manual activities and exemption table to add a new row
• On the Create Activity and Exemptions Summary (AEX) screen, complete the:
  • Activity Type
  • Start date: the day the job seeker's activity starts to fully meet their mutual obligation requirements is day one

Go to Step 8.

Choose options from below:

Make sure the correct start date is recorded from the date the job seeker can fully meet their minimum hourly and remuneration requirement. This enables them to successfully report their employment income paid and hours worked in the first full reporting period after requirements start being met. The Start date will be the:

• initial date the job seeker notified paid work commenced meeting requirements (if commenced in the past), or
• date the Service Officer confirms the job seeker is fully meeting requirements following allocation of a ZALL_JSK_PLN work item. See Job Seeker Management Activities, or
• Entitlement Period Start Date (EPSD) of the next reporting period (if paid work commenced meeting requirements part way through the current reporting period), or
• date paid work is expected to commence meeting requirements (if commencing in the future)

Future start date recorded

Job seekers whose PTW activity is updated with a future start date will not change to Centrelink managed until the start date of the approved requirement. The Job Plan cannot be negotiated until the job seeker is displaying as Centrelink managed and the PTW activity has commenced.

If a future start date is recorded, tell the job seeker to contact the agency (by phone or in person) within 14 days of commencing their activity to negotiate a new Job Plan. If a Job Plan needs to be updated or negotiated by Services Australia, an Action Item message will display stating: 'Job Plan requires at least one compulsory requirement. Ensure Job Plan is updated taking into consideration the job seeker's participation category'.

The Resources page has start date coding examples.

• Complete the End date. This will be the earliest of:
  • the date the paid work is expected to end fully meeting requirements; or
  • the activity start date plus + another 363 days
• Select Save
• Update the fields:
  • Receipt Date
  • Channel
  • Service Reason - if the system does not select a default Service Reason, select the most relevant Service Reason for the update
• Select Save. (A provisional line will display on the AEX table). For a combined activity, select Add to add the second approved requirement
• Select Assess and address any errors/warnings
• Select Assess > Finish. Record details of the update on the Finalise screen
• Select Finalise to complete the transaction

• Extend the PTW activity period. The PTW activity can only be coded for a maximum period of 364 days, inclusive of the start and end dates
• If the job seeker has continued to meet their PTW requirement since their activity expired, record the:
  • start date as the previous PTW activity end date + 1 day
  • end date, as the new start date plus 363 days, or the date PTW is expected to end (whichever is the earliest)
• If the job seeker has resumed meeting their mutual obligation requirement through PTW after a break in employment since the expiry of the previous PTW activity, record the:
  • start date from the date the job seeker recommenced part-time work of 30 hours per fortnight. The day the activity is started is day one
  • end date, new start date plus 363 days or the date PTW activity is expected to end (whichever is the earliest)

Workforce Australia Providers only can approve participation in the following paid work combination activities for some job seekers to fully meet their mutual obligation requirements.

• PSW activity code - any job seeker participating in paid work and study for at least 70 hours per fortnight
• PPW activity code - principal carers and those assessed with a partial capacity to work (PCW) (15-29 hours), mature age job seekers aged 55 years or over, or a job seeker in receipt of Carer Allowance (CA), participating in paid work and study for at least 30 hours per fortnight
• PSV activity code - principal carers, assessed as having a PCW of 15-29 hours, mature age 55+, or a job seeker in receipt of Carer Allowance (CA) participating in voluntary work, study and paid work for at least 30 hours per fortnight
• PVP activity code - principal carers under 55 years of age participating in voluntary work and paid work for at least 30 hours per fortnight. This code can no longer be approved by providers as of 1 April 2025

DEWR will send the relevant activity details to Services Australia and the AEX screen is updated with the relevant activity code.

To negotiate the Centrelink managed Job Plan, go to Step 10.

After the AEX screen is updated, the system identifies if the:

• job seeker is Centrelink or provider managed
• Job Plan needs to be updated

Do not attempt to negotiate a new Job Plan until the job seeker's record changes to Centrelink managed.

If the AEX activity coding is subject to a QMA check:

• the system will not auto-populate the Job Plan until the Quality Management Officers (QMO) check is completed:
  • Service centre staff, see Team Leader for local escalation process to request an urgent QMA
  • Smart centre staff, see Urgent QMA process for Smart Centre, Labour Hire and Service Delivery Partners

To update the Job Plan:

• Select > Participation Summary to view the Key Information screen
• Select Messages > Action Item to view the Job Plan screen, select Negotiate Plan and negotiate a Job Plan
• Once the Job Plan is negotiated, the Action Item is removed
• Close any digital image work items associated with the voluntary work activity

Go to Step 11.

• they satisfy their mutual obligation requirements as they are doing an approved activity
• they still need to report via their preferred channel, such as self service (online or phone) or in person fortnightly, but do not need to report job search efforts
• once the paid work is approved:
  • the details are sent to the Department of Employment and Workplace Relations (DEWR)
  • the job seeker will automatically be suspended or exited from employment services, and
  • there is no need for job seekers to discuss this with their provider, however, the job seeker may choose to volunteer in Employment Provider Services. In this case, the job seeker will need to discuss it with their provider
• if aged 55 years or over, they:
  • may be eligible for variable reporting, (only if it is decided their income is unlikely to change and they meet all other eligibility criteria for variable reporting)
  • will be suspended or exited from Employment Provider Services
• they must tell Services Australia:
  • about changes to their participation in their part-time work or combined activities within their current reporting period, and
  • if a reduction in income paid or hours worked occurs
• the decision and record details of the decision and conversation with the job seeker on a closed DOC

Note: the employer or hours worked cannot be recorded through the Earnings and Reporting workflow unless the job seeker is due to report and has already started their part-time hours.

Is the job seeker making contact about a report due?

• Yes, go to Step 12
• No, procedure ends here

If the job seeker is reporting in person, select the Earnings and Reporting workflow in Process Direct.

The workflow lets the user record the employer, gross income paid, and hours worked.

Has the job seeker met their PTW activity requirements?

• Yes, complete the workflow and then process the report. Procedure ends here
• No, if:
  • the job seeker could not complete their self service reporting because they did not declare sufficient hours (at least 30 hours in the reporting period), go to Step 13
  • otherwise, see Table 2 > Step 1

Where a job seeker with PTW activity requirements 'drops through' to the Smart Centre or contacts about a reduction in their hours worked and/or income below the minimum wage, the following actions are needed:

• Stimulate the job seeker's current outstanding payment (if required)
• Discuss the job seeker's regular declared income and hours worked. If declared hours and/or income has consistently not met the sufficient work test, go to Step 14

If regular declared income is usually above the minimum wage, but their employer has not yet passed on the latest increase, tell the job seeker of the change to the minimum wage, and discuss. Annotate the Failed self service DOC (if applicable) or record details of the discussion on a new DOC.

Procedure ends here.

• If the job seeker is consistently not meeting the sufficient work test, the PTW activity must be ended on the AEX screen for the job seeker (Date of Effect (DOE) = date of discussion)
• Tell the job seeker they must be connected to an employment services provider for further assistance as the job seeker will have job search requirements. See Selection or allocation of a Workforce Australia Employment Services if not already connected. Their employment services provider must negotiate a Job Plan with them
• If a job seeker can arrange for an increase in their part-time work with their employer to match the current sufficient work test, they can request to have the PTW activity approved again
• Annotate the Failed self-service DOC (if applicable) or record details of the discussion on a new DOC

Procedure ends here.

If the job seeker has not started work yet, consider the correct start date to use when recording the approved requirement, as this may affect their ability to use self service reporting (as outlined in Step 7).

Activities can be recorded on the AEX screen, with a start date up to 2 weeks in the future:

• If the job seeker has already started work, use the date of notification
• The start day of the activity is the day the job seeker's activity starts fully meeting their mutual obligation requirements. This is day one
• The duration rules are inclusive of start and end dates of the activity
• The end date should be coded as:
  • the end date for employment (if known), or
  • the date the customer first started fully meeting requirements + 363 days
• Select PTW or YAC as the activity (YAC is coded only for Early School Leavers who are assessed as having a partial capacity to work), and code the start and end date for paid work on the AEX screen (as outlined in Step 7)

Depending on the duration of the activity, the job seeker will either be suspended or exited from IEA:

• If the activity is less than 13 weeks the job seeker will be suspended
• If the activity is longer than 13 weeks the job seeker will be exited

Do not discuss exiting the current IEA provider with the job seeker. IEA providers can offer Post Placement Support or Ongoing Support to job seekers who require additional workplace support:

If the job seeker is a participant in IEA Post Placement Support or Ongoing Support, do not negotiate the Job Plan. The IEA provider will negotiate the Job Plan accordingly once the paid work activity is coded on the AEX screen.

In rare circumstances a Centrelink Job Plan can be negotiated if the job seeker:

• has discussed their ongoing participation with their IEA provider, and
• has chosen to exit participation in IEA

Note: see the current Placement Type on the 'Provider referral information' table within the Participation Summary in Process Direct to determine what phase of IEA support the job seeker is placed in.