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Unemployed Due to Industrial Action (UDIA) 106-05020100



This document outlines the effect on the payability of JobSeeker Payment (JSP), Youth Allowance (YA) and Parenting Payment Partnered (PPP) if the customer is unemployed due to being or having been engaged in industrial action or a series of industrial actions.

Exclusion period

An exclusion period of 6 weeks may be imposed, if involvement in industrial action is in breach of an order, direction or injunction issued by a State industrial authority, the Fair Work Commission or the Federal Court. The exclusion period would end 6 weeks after the day on which the industrial action or series of industrial actions ceases. Where the industrial action is not a breach of an order, they may qualify for payment once industrial action or series of industrial actions stop.

The exclusion period also applies to a person who is not involved in the industrial action but who is a member of the trade union involved. However if a customer loses their employment due to industrial action but they are not in the union nor participated in the industrial action they are not affected by the exclusion period.

The only exemptions are for full-time students.

A PPP customer who is already receiving parenting payment before the commencement of the industrial action will continue to qualify during any period of unemployment due to that industrial action.

Qualification for PP is not affected by industrial action undertaken by the partner of a customer claiming or receiving PP.

This exclusion period also extends to customers granted Special Benefit (SpB) on or after 1 January 2003 and who are subjected to the SpB Nominated Visa Holders mutual obligation requirements. For other SpB claimants SpB will not be granted while they are involved in industrial action.

Employer initiated lock out

An employer may initiate a lock out following industrial action by employees or in order to further negotiations of an Australian Workplace Agreement (AWA). If the lock out is solely for the purposes of furthering negotiations of an AWA or negotiations have broken down, it does not meet the definitions of industrial action. Consequently, in cases of lock out by employers there may be an entitlement to a JSP, YA, or PP for affected workers, providing the lock out is not caused by them having been engaged in industrial action.

A customer will be excluded from payment if they:

  • are on strike or have been locked out by their employer because of their involvement in industrial action, or
  • have been stood down because of the industrial action of other people who are members of the same trade union to which they also belong. This includes workers in other industries who are stood down as a consequence of the industrial action

An exclusion may not apply if:

  • they have not been taking industrial action and are not a member of a union taking industrial action, or
  • they have been locked out by an employer for a reason other than industrial action, or
  • the lock out or stand down was caused by other people taking industrial action and they are not members of the same trade union, or
  • they are the partner of a worker who has been locked out or stood down

Customers claiming JSP, YA or PP as a result of industrial action will need to meet all of the usual eligibility requirements, including their mutual obligation requirements and provide details of last employment (usually by providing an Employment Separation Certificate).

Contacting employers regarding industrial action

Where a person claims JSP, YA or PP as a result of being locked out from their workplace, it must be established if the lock out was in response to industrial action by employees. In order to establish this, contact needs to be made with both the employer and the union to get details of the circumstances giving rise to the lock out. Due to the sensitive nature of industrial situations, care must be taken when contacting the employer as Services Australia's sole purpose in this context is to establish entitlement to income support and not to intervene in the industrial dispute. Contact should only be made after a claim has been made.

The Resources page contains links to draft letters to send to either an employer or union to gather information about industrial action and further clarification on assessing payment entitlement during a UDIA period.

Eligibility for JobSeeker Payment (JSP)

Claiming Parenting Payment (PP)

Processing JobSeeker (JSP) claims

Rejecting a claim for JobSeeker Payment (JSP) or Youth Allowance (YA) (job seeker)

Rejecting a Parenting Payment (PP) claim