Moving to an Area of Lower Employment Prospects (MALEP) employment related exclusion period 001-03040040

The Moving to an Area of Lower Employment Prospects (MALEP) policy was created to discourage unemployed job seekers from limiting their employment prospects by relocating to an area where the likelihood of finding work was significantly lower than in their previous location.

All job seekers in receipt of, or claiming JobSeeker Payment (JSP), Youth Allowance (YA) (job seeker) or Special Benefit (SpB) with Nominated Visa Holder (NVH) mutual obligation requirements will not be payable for a period of 26 weeks if they:

• move to a new place of residence, and
• the move lowers their employment prospects, and
• they do not have a sufficient reason for moving (as defined in the Social Security Act 1991), and
• there is insufficient evidence that the job seeker's skills are in demand in the new area

All other job seekers - including those who are Mature Age, Principal Carer Parents, have a Reduced Work Capacity or an exemption from mutual obligation requirements for any reason - may incur a MALEP 26 week employment related exclusion period. Any change of address must be assessed under the MALEP policy, with clear documentation included to explain why an employment related exclusion period has - or has not - been applied.

MALEP 26 week employment related exclusion period cannot be waived, unless the job seeker either:

• returns to their original residence, or
• moves again to a new location that has equal or better employment prospects than the residence the job seeker was living in prior to the move that resulted in the employment related exclusion period being imposed

Job seekers are not subject to MALEP if they receive either:

• Parenting Payment with mutual obligation requirements, or
• Special Benefit (SpB) with mutual obligation requirements (such as, they are not subject to Nominated Visa Holder mutual obligation requirements)

A MALEP Assessment is not required and the move is 'automatically approved' if:

• the job seeker's previous and new address are both in the same town and postcode
• the job seeker is moving to 1 of the 5 major metropolitan areas in Australia - Sydney, Melbourne, Brisbane, Perth or Adelaide, or within 90 minutes travel from 1 of these areas

The application of MALEP initially starts with the analysis and comparison of 2 local labour markets - the one where the job seeker currently resides and the one to which the job seeker proposes to or has moved to.

As a general rule, if the area to which the job seeker proposes to move has an unemployment rate at least 2% higher than that in the area where they currently reside, a MALEP employment related exclusion period will apply unless the job seeker:

• has an acceptable reason for the move
• will reside within a reasonable commuting distance of a labour market that has an unemployment rate equal to or better than their previous address, or provides sufficient evidence to confirm they would not be lowering their employment prospects

Where a job seeker has moved to an area of lower employment prospects, a MALEP employment related exclusion period will be applied unless it can be demonstrated that the job seeker has an acceptable reason for moving.

Careful consideration should be given to every job seeker's individual circumstances, however the job seeker will only be considered to have an acceptable reason if they:

• are moving in order to accept, or commence a confirmed offer of suitable employment
• are moving in order to undertake a labour market programme or a rehabilitation programme approved by the Department of Employment and Workplace Relations
• are moving to a labour market that has demonstrated demand for the job seeker's skills (thereby increasing their chances of securing employment)
• are going to live with or near a family member who has already established residence (must have been living in the new residence for at least 26 weeks) in the new area
• dependent job seekers who move when their parent changes residence (Youth Allowance only)
• are moving to treat or alleviate a physical disease or illness suffered by the job seeker or an immediate family member
• are moving because of an extreme circumstance, for example, family and domestic violence, destruction of family home
• have been transient or homeless and has been offered stable long-term accommodation in the new area, or
• have been given an offer of public housing and there is no other suitable houses on offer within an area of better employment prospects, or
• will suffer unreasonably severe financial difficulties if they are to remain at their current location

The onus is on the job seeker to provide the Service Officer with sufficient evidence to verify they have an acceptable reason for moving. The Service Officer must ensure this evidence is clearly documented or scanned on the job seeker's record when recording the MALEP Assessment outcome. For more information and example of evidence required, see the Resources page.

Note: commuting time should be calculated using the transport method the person has available to them such as car, bike and public transport. If 'Whereis.com' is used to make a decision, then it must be documented on the job seeker's record that Whereis.com was used in the calculations.

Where voluntary unemployment has occurred as part of moving to the new area, a compliance investigation is required. Any period the MALEP employment related exclusion period and financial penalty as a result of compliance overlap may be served concurrently.

If a job seeker leaves work voluntarily or due to misconduct and received relocation assistance to start the job, a MALEP should not be investigated where the job seeker remains in the location for which they were paid relocation assistance.

If however, the job seeker left the same job for which they received relocation assistance to move to a location other than their previous home address, a MALEP investigation may be appropriate.

MALEP decisions are recorded on the Incident Summary (BIIS) and Incident Details (BIDE) screens.