Unemployment due to a voluntary act or misconduct 001-10060000

If a job seeker receiving or claiming a participation payment becomes unemployed, the reasons for separation from employment must be identified. This information may be provided via:

• an Employment Separation Certificate (SU1)
• Verbal SU1 from the employer
• Single Touch Payroll (STP) information on the STP Employer Wage Items (EMGI) screen in Process Direct
• the Third Party Information Summary (TPIS) screen in Customer First
• the job seeker's statement at new claim, or
• formal termination advice (i.e. letter) from the employer

If the job seeker and employer's statements show unemployment was not voluntary and not due to misconduct or ill health/medical condition, a compliance investigation does not need to be generated.

If the job seeker and employer statements:

• differ, or it is unclear if the unemployment was voluntary or due to misconduct, go to Step 2
• both support that unemployment was voluntary or due to misconduct, go to Step 3
• both show unemployment was not voluntary or due to misconduct, do not generate a failure. Procedure ends here

Further contact with an employer is needed if:

• the employer has provided additional information or free text that contradicts the reason for separation selected on the SU1
• 'unsatisfactory work performance' is recorded but no further explanation as to what this means, and the job seekers statement does not show the cessation of employment has occurred because of misconduct
• 'ill health' is recorded however no additional information is included to establish if the job seekers ill health resulted in the:
• work no longer being suitable, or
• job seeker failing to attend/abandoning work because of ill health
• 'other' reason is recorded, however the SU1 does not include adequate information to establish the reason for separation, including where the reason indicates cessation of employment has occurred as the result of a medical condition or ill health
• the employer did not indicate a reason for separation

If contact with the employer is successful, or is not needed:

• Annotate the Progress of Claim DOC, where needed, with any more details collected that clarifies the reasons for unemployment
• If the employer has confirmed the reason for separation was not a voluntary act or due to misconduct, a compliance investigation does not need to be generated. The decision to not generate a compliance event should be recorded on the Progress of Claim DOC. Procedure ends here
• If unemployment was due to a voluntary action or misconduct, tell the employer that we may need to contact again for more information. Confirm with the employer the best person for this contact. Go to Step 3

If contact with the employer is needed but was not successful:

A compliance investigation may be needed.

Annotate the Progress of Claim DOC, where needed, with the job seeker's statement outlining their reasons for leaving work. Include:

• any request for additional information the job seeker has been asked to provide, and
• the due date

For job seekers:

• claiming a participation payment, go to Step 4
• currently receiving a participation payment, see Table 2

If the job seeker is:

• claiming a participation payment, go to Step 4
• currently receiving a participation payment, see Table 2

Consider the information provided by the job seeker in the claim and if there are any other reasons why the job seeker will not be eligible for payment.

Based on information provided by the job seeker, will the new claim be rejected?

• Yes, go to Step 5
• No, go to Step 6

For a compliance action to be applied, a participation payment must be payable before it can be affected by a non-payment or preclusion period. If the claim for payment does not meet eligibility criteria, a compliance investigation does not need to be generated.

Record a Display on Access (DOA) DOC to advise that if the claim had not been rejected, compliance investigation would have been required. Include in the DOC:

• date of unemployment
• date the SU1 was scanned (where applicable)
• if unemployment stopped because of:
• voluntary unemployment, or
• unemployment due to misconduct as a worker
• if the job seeker reclaims payment before the end of any potential penalty period, consider generating compliance investigation before any reclaim is finalised
• any other relevant details

This DOA DOC must have an expiry date equal to the expected end of the potential penalty period.

Procedure ends here.

Job seekers have fully self-served a potential penalty period if the end date of the potential penalty period is before the claim start date. This will depend on:

• if the job seeker received relocation assistance for the job, and
• the job seeker compliance system the job seeker is managed under

The potential penalty period will be fully self-served for a job seeker who is managed:

• under the Targeted Compliance Framework, if the date of unemployment is more than:
• 4 weeks before the potential claim start date, or
• 6 weeks before the potential claim start date if the job seeker was paid relocation assistance
• under the Job Seeker Compliance Framework, if the date of unemployment is more than 8 weeks before the potential claim start date

Has the job seeker fully self-served the potential penalty period?

• Yes:
• a compliance investigation does not need to be generated
• annotate the Progress of Claim DOC, with the reasons why a compliance investigation is not being generated, and
• continue with normal claim processing
• procedure ends here
• No, go to Step 7

Identify other waiting periods or preclusion periods that will extend beyond the potential penalty period end date, including:

• Liquid Assets Waiting Period (LAWP)
• Income Maintenance Period (IMP)
• Seasonal Work Preclusion Period (SWPP)
• Newly Arrived Resident's Waiting Period (NARWP) and Qualifying Residence Period
• Ordinary Waiting Period (OWP)

Do not undertake any MALEP assessments. The Department of Social Services (DSS) has paused all Moving to an Area of Lower Employment Prospects (MALEP) assessments. See Moving to an Area of Lower Employment Prospects (MALEP) employment related exclusion period.

Will the job seeker serve a waiting period that extends beyond the potential penalty period end date?

• Yes, go to Step 8
• No, see Table 2

For job seekers not currently receiving a participation payment, compliance action is not to be generated if concurrent waiting periods will extend beyond the potential penalty period end date.

Staff must:

• annotate the Progress of Claim DOC with the reason for not generating compliance action, and
• record a Display on Access (DOA) DOC in Customer First, detailing:
• why compliance action was not generated, and
• if any waiting periods are reassessed to end before the end of any potential penalty period, staff should consider generating compliance action before any payment is issued
• this DOA DOC must have an expiry date equal to the expected end of concurrent preclusion period(s)

If a waiting period review results in payment starting before the end of a potential penalty period, compliance action must be generated.

Continue with normal processing. Procedure ends here.

When a job seeker who claims for, or is receiving a participation payment stops suitable work, staff must explore the reasons why. If the job seeker left suitable work because of a voluntary act, misconduct or due to ill health, a compliance action must be generated.

A compliance action to investigate the reasons why the job seeker left suitable work can only be generated when evidence suggests they left suitable work:

• due to a voluntary act, or
• misconduct

Has the job seeker submitted a new claim for a participation payment?

• Yes, go to Step 2
• No, go to Step 3

Before generating an Unemployment Failure or Unemployment Non-Payment Period (UNPP) failure at new claim, staff must review the job seeker's record to make sure the compliance action has not been generated for the same incident.

To determine this, staff must check the Participation Compliance Hub in Process Direct.

In Process Direct, for job seeker who submit an online claim or where staff have completed the Assisted Customer Claim (ACC) workflow:

• once in the claim, the Transaction Summary (TS) screen will show
• go to the Participation Compliance Hub (BIPCW) screen

Does the Participation Compliance Hub show an unemployment related compliance action with a compliance status of Investigation for the same incident?

Yes, do not generate another compliance action for investigation.

• If the Service Officer holds a WNPPD or UNPP security resource:
• see Investigating unemployment due to a voluntary act and Investigating dismissal due to misconduct
• procedure ends here
• does not hold the required security resource:
• transfer the job seeker to the Participation Solutions Team (PST) for the compliance action to be investigated
• procedure ends here

No:

• select Back to return to the TS screen
• a compliance action will need to be generated, go to Step 4

Before generating an Unemployment Failure or Unemployment Non-Payment Period (UNPP) failure for a job seeker current on payment, staff must review the job seeker's record to make sure the compliance action has not been generated for the same incident.

To determine this, staff must check the Participation Compliance Hub in Process Direct.

In Process Direct:

• select Customer Summary from the Process Direct Landing page
• key the job seeker's CRN, select Go
• select the job seeker's CRN from the search results
• go to the Participation Compliance Hub (BIPCW) screen

If there is an outstanding compliance action already created for the same incident, a new compliance action must not be generated.

Is there an outstanding compliance action for the same incident?

• Yes, do not generate another compliance action for investigation, see:
• Investigating unemployment due to a voluntary act
• Investigating dismissal due to misconduct
• No, go to Step 5

Before generating a compliance action, make sure all relevant evidence (for example, SU1) is scanned onto the job seekers record, using the appropriate classification.

On the Transaction Summary (TS) screen in Process Direct, select > Generate UNPP to launch the Generate Compliance Action workflow

Within the workflow, update the following fields:

• What payment type does this compliance action relate to? Key the participation payment the job seeker is claiming
• What is the event date of this compliance action? (dd/mm/yyyy) This is the day after the job seeker last worked (date of unemployment). See the Resources page for common scenarios to determine the date of unemployment
• What is the nature of the compliance action? Select EPR - Employment Related
• What is the reason for this compliance action? Select the appropriate reason from:
• Dismissed from suitable job due to misconduct (including when a job seeker abandons work due to ill health)
• Left suitable job voluntarily (including when a job seeker resigns from work due to ill health)
• Employer's name: as per separation details
• Contact name: as per separation details
• Contact details: as per separation details
• Has an Employment Separation Certificate (SU1 received verbally or in writing) or Single Touch Payroll data been received in relation to the job seeker's unemployment? Select Yes or No. The following will show depending on the answer selected:
• Yes - Record the reason/s selected on the SU1 or Single Touch Payroll data will show. Select the appropriate option/s
• No - Information to support this compliance action will show. Record the details of the information used to generate the compliance action
• Is there additional information on the SU1? Select Yes or No (This question will only present if the answer was Yes to the earlier question.) The following will show depending on the answer selected:
• Yes - Provide details of the failure, including additional information provided on the SU1 will show. Record any further details of the separation
• No - Information to support this compliance action will show. Record any further details of separation
• You are about to generate a compliance action activity. Are these details correct? Select Yes or No
• Do you want to send a notification asking the job seeker to contact Services Australia? Select Yes
• Select Submit to save all information
• Does E488PB - Provider not known/Provider not linked error when generating failure at new claim show?
• Yes, go to Step 8
• No, continue with generating compliance action
• Resolve any warnings or errors on the SAP Warnings and Errors (SWE) screen, select Assess
• The Entitlements (ELD) screen will show. Check the outcome is correct and select Finish
• The Finalise screen will present, include any relevant notes in the Free text field, select Finalise
• A notification will show to advise a Change of Circumstances 'CoC Successfully finalised for CRN'. Select OK to return to the Process Direct Form List
• If appropriate, annotate the Progress of Claim DOC to advise a compliance action has been generated

If the compliance action is generated because of a new claim, a UNPPJSK keyword is automatically added to the claim activity. The new claim activity cannot be finalised until the compliance action has been completed.

Note: failure to correctly finalise the Generate Compliance Investigation workflow will result in the compliance activity remaining at Provisional status instead of the correct Investigation status. If this occurs, staff may be allocated work items ZCOC_GCA and ZCOC_GCA_CDP to review and complete the provisional compliance actions. For more information, see the Resources page for a link to the Process Direct Support page.

When the compliance action is generated, if the Job Seeker is:

• not on the phone or present, go to Step 6
• on the phone or present, go to Step 7

For job seekers receiving a participation payment, compliance action can only be generated in Process Direct, and are generated for recipients of the following participation payments:

• JobSeeker Payment (JSP)
• Youth Allowance (YA) (job seeker)
• Parenting Payment (PP) (with mutual obligation requirements)
• Special Benefit (SpB) (nominated visa holder)

Select Generate Compliance Action on the Participation Compliance Hub to launch the workflow.

Failure to complete the full process will result in an incorrectly generated activity.

Within the workflow, update the following fields:

• What payment type does this compliance action relate to? Key the participation payment the job seeker is receiving
• What is the event date of this compliance action? (dd/mm/yyyy) This is the day after the job seeker last worked (date of unemployment). See the Resources page for common scenarios to determine the date of unemployment
• What is the nature of the compliance action? Select EPR - Employment Related
• What is the reason for this compliance action? Select the appropriate reason from:
• Dismissed from suitable job due to misconduct (including when a job seeker abandons work due to ill health)
• Left suitable job voluntarily (including when a job seeker resigns from work due to ill health)
• Employer's name: as per separation details
• Contact name: as per separation details
• Contact details: as per separation details
• Has an Employment Separation Certificate (SU1 received verbally or in writing) or Single Touch Payroll data been received in relation to the job seeker's unemployment? Select Yes or No. The following will show depending on the answer selected:
• Yes - Record the reason/s selected on the SU1 or Single Touch Payroll data will show. Select the appropriate option/s
• No - Information to support this compliance action will show. Record the details of the information used to generate the compliance action
• Is there additional information on the SU1? Select Yes or No. (This question will only present if the answer was Yes to the previous question.) The following will show depending on the answer selected:
• Yes - Provide details of the failure, including additional information on the SU1 will show. Record any further details of the separation
• No - Information to support this compliance action will show. Record any further details of separation
• You are about to generate a compliance action activity. Are these details correct? Select Yes or No
• Do you want to send a notification asking the job seeker to contact Services Australia? Select Yes
• Select Submit to save all information, the SAP Warnings and Errors (SWE) screen will show:
• Resolve any warnings or errors on the SWE screen, select Assess
• The Entitlements (ELD) screen will show. Check the outcome is correct and select Finish
• Finalise modal will present, include any relevant notes in the Free text field, select Finalise
• COC finalised will present, select OK to confirm the successful generation of the compliance action

Note: failure to correctly finalise the Generate Compliance Investigation workflow will result in the compliance activity remaining at Provisional status instead of the correct Investigation status. If this occurs, staff may be allocated work items ZCOC_GCA and ZCOC_GCA_CDP to review and complete the provisional compliance actions. For more information, see the Resources page for a link to the Process Direct Support page.

Is the job seeker on the phone or in the service centre?

• Yes, go to Step 7
• No, go to Step 6

The compliance or new claim activity (if appropriate) will be allocated to an appropriately skilled Service Officer to action via Workload Manager if the:

• job seeker is not on the phone or in the service centre at the time the compliance action is generated, or
• Service Officer does not have WNPPD or UNPP security resources

Confirm the failure has been correctly generated and annotate the Progress of Claim DOC to record the compliance action has been generated.

Note: failure to correctly finalise the Generate Compliance Investigation workflow will result in the compliance activity remaining at Provisional status instead of the correct Investigation status. If this occurs, staff may be allocated work items ZCOC_GCA and ZCOC_GCA_CDP to review and complete the provisional compliance actions. For more information, see the Resources page for a link to the Process Direct Support page.

Procedure ends here.

If the Service Officer generating the compliance action:

• is Participation Solutions Team (PST)-skilled with WNPPD or smart/service centre staff with UNPP security resource, they must conduct the investigation. If the job seeker is unemployed due to:
• voluntary act, see Table 2 on the Investigating and finalising a compliance action tab
• misconduct as an employee, see Table 3 on the Investigating and finalising a compliance action tab
• is not PST-skilled or smart/service centre staff with UNPP security resource, transfer the job seeker (unannounced) to the PST via the appropriate IWS transfer option

If the job seeker is in the service centre and/or unable to call from their own phone, help them contact the PST using an appropriate phone in the service centre.

If the job seeker is unable to wait to speak with the PST, tell the job seeker this may result in a delay in their payment or claim processing. Provide the job seeker with the PST number and ask them to contact as soon as possible.

If appropriate, annotate the Progress of Claim DOC detailing the job seeker was unable to be transferred to the PST and was advised to call back as soon as possible.

The compliance activity will be allocated to PST-skilled staff to action via Workload Manager.

Procedure ends here.

An error 'E488PB - Provider not known/Provider not linked' may occur in Process Direct when attempting to generate a failure as part of the new claim process.

This error may occur when the job seeker has:

• not been referred to a provider, or
• been referred to a provider but there is a delay in the system processing the referral

This error affects failures generated when a job seeker is claiming:

• JobSeeker Payment (JSP)
• Youth Allowance (YA) (job seeker)
• Special Benefit (SpB) - Nominated Visa Holders, and
• Parenting Payment Single (PPS) with compulsory requirements

Before attempting to generate the failure, confirm correct action has been taken to refer the job seeker to a provider, see Participation Interview.

If the appropriate action has been taken and the error is stopping generation of the failure, the claim should be assessed without investigating the failure.

Staff must:

• annotate the Progress of Claim DOC advising E488PB error is stopping failure generation
• continue processing the new claim (if suitably skilled)
• make sure the new claim is 'in process' to be allocated to a suitably skilled Service Officer to action via Workload Management

Do not hold claims where this error shows.

Procedure ends here.

This work item will be allocated to suitably skilled Service Officers who are able to process new claims and employment related failures at new claim. The Service Officers will have skill-tag NV_CLK_OLC_JSK_UNPP.

Before starting the investigation, check:

• if the new claim will be rejected, see Step 5 in Table 1 and reject the compliance action, or
• if the potential penalty period has been self-served, see Steps 6 and 7 in Table 1 and reject the compliance action

If the ZIAM_NCLJCNF work item is being allocated:

• for the first time, go to Step 2
• after being held when the PBIC02 letter was issued, go to Step 5

Does the job seeker have contact details recorded?

• Yes, go to Step 3
• No, go to Step 6

When it is necessary to contact a job seeker, make every reasonable and genuine effort to make sure contact is successful.

If the contact number recorded on the job seeker's record is a mobile number. Create a pre-call notification (SMS only) using Desktop Electronic Messaging Capability (DEMC). Following creation of the SMS, wait 5 minutes before making the outbound attempt.

Was the contact successful?

• Yes:
• to investigate unemployment due to a voluntary act, see Table 2
• to investigate dismissal due to misconduct, see Table 3
• No:
• hold the claim work item until the next calendar day using reason 'Participation Compliance'
• hold the participation compliance activity until the next calendar day using reason ‘pending customer contact’
• annotate the Progress of Claim DOC to include sufficient detail about the outbound contact attempt to allow a subsequent Service Officer to action the second attempt

If the first attempt to contact the job seeker is unsuccessful, make a second genuine attempt in line with current processes.

If the contact number recorded on the job seeker's record is a mobile number, create a pre-call notification (SMS only) using Desktop Electronic Messaging Capability (DEMC). Following creation of the SMS, wait 5 minutes before making the outbound attempt.

Was the contact successful?

• Yes:
• to investigate unemployment due to a voluntary act, see Table 2
• to investigate dismissal due to misconduct, see Table 3
• No, go to Step 5

Check if a letter asking the job seeker to contact the agency to discuss their reasons for unemployment has been sent.

Go to the History Summary (HS) screen.

For further information on how to view a letter sent to a job seeker or find a letter stored in the Customer Archive Retrieval (CAR) system, see Viewing or reissuing a letter or electronic message.

If a PBIC02 letter code does not show on the HS screen:

Was a PBIC02 letter issued?

• Yes, and it is:
• 15 calendar days or more from the issue date, go to Step 7
• it is not 15 calendar days or more from the issue date, hold the claim with reason Participation Compliance. Hold the participation compliance activity with reason pending customer contact for 15 calendar days from the date the PBIC02 letter was issued. When the claim comes off hold, go to Step 6
• No, issue a Q164 letter. Go to Step 6

If there are no contact details or incorrect details are recorded (for example, the job seeker's phone number is not registered), or a PBIC02 letter has not been issued:

• issue a Q164 letter asking the job seeker to contact Services Australia by phone within 14 days. Include the Participation Solutions Team (PST) phone number
• hold the new claim item and the participation compliance activity for 15 days. When the claim comes off hold, go to Step 7

• Reject the compliance action if:
• genuine attempts have been made to contact the job seeker, or
• the job seeker fails to respond to the PBIC02 or Q164 letter
• Create a Display on Access (DOA) DOC about regenerating the compliance action if the claim is re-indexed. The DOC must have an expiry date equal to the expected end of the potential penalty period
• Reject the claim, see Rejecting a Centrelink claim. Generally, these claims will reject 'FRC' failed to reply to correspondence or 'FSD' failed to supply documents

When investigating if a job seeker voluntarily left suitable employment without a reasonable excuse, relevant matters that must be considered include:

• the circumstances that led the job seeker to leave their employment
• if the employment was suitable work, and
• any factors that made it reasonable for the job seeker to leave their employment voluntarily

Record the compliance action and decision using the Participation Compliance workflow in Process Direct.

To access the workflow:

• select Customer Summary
• key the job seeker's CRN, select Go
• select the job seeker's CRN from the search results
• go to the Participation Compliance Hub (BIPCW) screen
• select Compliance Investigation from the Outstanding compliance actions table for the Event date of the compliance action

At the beginning of the investigation, the job seeker must be given a clear explanation of the reasons an investigation is being undertaken. Job seekers must be given the opportunity to respond to the claim that they are responsible for their unemployment.

Service Officers must keep the conversation focused to make sure all key facts and evidence relevant to the event are collected for consideration.

The information recorded when the compliance action was generated should then be used to initiate the discussion. This may include:

• the job seeker's explanation for leaving work
• any information received from contact with the employer
• information recorded by the provider
• information from the Employment Separation Certificate (SU1) - the nature and type of work
• Single Touch Payroll (STP) information recorded on the STP Employer Wage Items (EMGI) screen within Process Direct
• any notes on the Progress of Claim DOC, if applicable

The Event date is the date of unemployment, which is:

• the date last worked plus 1 day, or
• the day after the job seeker last worked

Note: for scenarios to help with determination of the Event date, see the Resources page.

If it is established that an unemployment failure or Unemployment Non-Payment Period (UNPP) was not committed on the event date that has been recorded, complete the following:

• Unemployment failure or UNPP generated by Services Australia:
• Service Officers undertaking the investigation must change the event date on the Key information screen
• Once the event date is changed, the compliance investigation can start
• Unemployment failure or UNPP generated by the provider:
• Service Officers undertaking the investigation must reject the failure
• Document in the Further information to be sent to provider: field 'Incorrect incident date. This must be the first date the job seeker was not working' and include the correct incident date for the provider to review
• Reinforce with the job seeker the expectation that they should remain in suitable work and not deliberately contribute to their unemployment
• Tell the job seeker that if their provider decides to resubmit an unemployment failure for the correct date they became unemployed, a new investigation is needed

For more information, see Rejecting a compliance action.

For job seekers managed under the Targeted Compliance Framework only, identify if the job seeker may have received relocation assistance to start work with the employer of the job that the compliance action is related to.

The Key Information page shows the following question: Was the job seeker eligible for relocation assistance? If the answer is yes, confirm relocation assistance was paid. To check:

• Select > Participation Summary > Participation Compliance > Provider recorded information > Relocation assistance details

If the job seeker has received relocation assistance, the compliance action must be investigated by PST-skilled staff.

If the job seeker has not received relocation assistance, Service Officers with UNPP security resource can continue to investigate the failure if this is a part of a claim.

During the investigation, the job seeker must be given opportunity to respond to any adverse claims that have been made against them and disclose any further information they would like considered.

As a result of this discussion, Service Officers should record:

• the type of work and how long they had been working in the role, if relevant
• the job seeker's explanation for leaving employment voluntarily
• any efforts made by the job seeker to retain their employment
• any other relevant information provided by the job seeker

A compliance action can only be applied if the work was suitable for the job seeker.

Additional considerations are required to assess suitability of work for job seekers who have a partial work capacity or are a principal carer parent.

Services Officers (UNPP or WNPPD) must reject unemployment failures or Unemployment Non-Payment Period (UNPP) compliance actions if:

• the job is more than 15 hours per week, and
• the job seeker:
• has a partial capacity to work, or
• is a principal carer parent

For further information on assessing the suitability of work, see Suitable/unsuitable work.

If the provider submitted the compliance action, the provider has already considered the suitability of the work for the job seeker. Assume the work was suitable unless the job seeker suggests it was not suitable. If this occurs, suitability of the work for the job seeker's circumstances must be considered.

It is generally not reasonable for a job seeker to leave work for factors within their control; this includes leaving work voluntarily and accessing or increasing their reliance on an income support.

If the work was considered suitable and the job seeker left voluntarily, consider their reasons for leaving. If they have a reasonable excuse, a penalty will not be applied.

All factors that significantly and directly impacted the decision to leave work are relevant matters for consideration.

In addition to the factors, consider if the assessment of the voluntary unemployment was reasonable and if the work remained suitable for the job seeker.

Further considerations to determine if the job seeker left work voluntarily may include:

• any efforts made by the job seeker to retain their employment, for example, did they discuss the issues they were experiencing with management and if so, what action was taken
• did they notify anyone of their decision to leave their employment (include names, position and contact details)

Factors related to personal reasons outside of the job that do not make the work unreasonable include:

• wishing to relocate to be near children, a new partner or re-join an ex-partner
• wishing to relocate to a more agreeable climate or location, or
• wanting to take up a sporting commitment or relocate pending retirement

Such reasons are generally not regarded as being reasonable for leaving work. A person would usually be expected to obtain new work to accommodate their external interests without having to rely on a participation payment.

Similarly, leaving work because the work or contract was going to be stopping in the near future is not a reasonable excuse if the job seeker did not have another job to go to.

For more information, see Assessing reasonable excuse for non-compliance with mutual obligation requirements.

Consider information obtained during any previous contact made with the employer. Further contact may be required to establish the facts, especially if evidence from the job seeker contradicts statements made by the employer.

Service Officers should attempt to contact the employer by phone. This ensures a timely investigation and provides opportunity for matters raised to be clarified with additional questions if required.

Further contact with an employer may be required:

• if no reason for separation was established before generating compliance action, or
• to clarify inconsistencies in the evidence gathered

If unable to contact the employer or the employer refuses to provide information, further evidence should be requested from the job seeker and the decision should be made based on the available evidence. See Gathering and assessing evidence for a job seeker compliance investigation.

If, during an investigation, it is identified that the job seeker has voluntarily left suitable employment without a reasonable excuse, and:

• the job seeker has subsequently restarted with their employer without a break in continuous employment, voluntary unemployment has not occurred
• reject the compliance action
• there has been a break in continuous employment with their employer
• compliance action should be applied unless reasonable excuse is established

An investigation into a job seekers reason for unemployment should not be delayed on the basis that the job seeker is attempting to regain their job.

If the work is assessed as unsuitable or the job seeker establishes a reasonable excuse for stopping work voluntarily, reject the compliance action.

If the job seeker leaves suitable work due to a voluntary act and reasonable excuse is not established, the penalty imposed depends on the compliance system the job seeker was managed under at the time the compliance action was generated.

Job seekers claiming or receiving Special Benefit (SpB)

The treatment of voluntary unemployment differs depending on which mutual obligation requirements apply to the job seeker:

• Under mutual obligation requirements for SpB, job seeker compliance action may be applied for voluntary unemployment (as per JobSeeker Payment (JSP))
• For all other job seekers receiving SpB, voluntary unemployment will mean that the job seeker is not qualified for SpB

See Table 4.

When investigating if a job seeker was dismissed due to misconduct, the relevant matters that must be considered include if:

• the employment was suitable work, and
• an incident of misconduct occurred

If the misconduct is considered to be a behaviour or action that was within the jobseeker's control, reasonable excuse should not be considered as part of the investigation.

Record the compliance action and decision using the Participation Compliance workflow in Process Direct.

To access the workflow:

• select Customer Summary
• key the job seeker's CRN, select Go
• select the job seeker's CRN from the search results
• go to the Participation Compliance Hub (BIPCW) screen
• select Compliance Investigation from the Outstanding compliance actions table for the event date of the compliance action

At the beginning of the investigation, the job seeker must be given a clear explanation of the reasons an investigation is being undertaken. Job seekers must be given the opportunity to respond to the claim that they are responsible for their unemployment.

Service Officers must keep the conversation focused to make sure all key facts and evidence relevant to the event are collected for consideration.

The information recorded when the compliance action was generated should then be used to initiate the discussion. This may include:

• information recorded in the workflow when the compliance action was generated, including the job seeker's explanation of the events leading to dismissal and any additional contact with employer
• Employment Separation Certificate (SU1) - the nature of the employment, type of work being offered/performed, reason for separation, how long the job seeker had been working for the company
• provider recorded information, if applicable
• any notes on the Progress of Claim DOC, if applicable

The event date is the date of unemployment, which is:

• the date last worked plus 1 day, or
• the day after the job seeker last worked

Note: for scenarios to help with determination of the Event date, see the Resources page.

If it is established that an unemployment failure or Unemployment Non-Payment Period (UNPP) was not committed on the event date that has been recorded, complete the following:

• Unemployment failure or UNPP generated by Services Australia:
• Service Officers undertaking the investigation must change the event date on the Key information screen
• Once the event date is changed, the compliance investigation can start
• Unemployment failure or UNPP generated by the provider:
• Service Officers undertaking the investigation must reject the failure
• Document in the Further information to be sent to provider: field 'Incorrect incident date. This must be the first date the job seeker was not working' and include the correct incident date for the provider to review
• Reinforce with the job seeker the expectation that they should remain in suitable work and not deliberately contribute to their unemployment
• Tell the job seeker that if their provider decides to resubmit an unemployment failure for the correct date they became unemployed, a new investigation will be required

For more information, see Rejecting a compliance action.

For job seekers managed under the Targeted Compliance Framework only: Identify if the job seeker may have received relocation assistance to start work with the employer of the job that the compliance action is related to.

The Key Information page shows the following question: Was the job seeker eligible for relocation assistance? If the answer is yes, confirm relocation assistance was paid. To check:

• Select > Participation Summary > Participation Compliance > Provider recorded information > Relocation assistance details

If the job seeker has received relocation assistance, the compliance action must be investigated by PST-skilled staff.

If the job seeker has not received relocation assistance, Service Officers with UNPP security resource can continue to investigate the failure if this is a part of a claim.

During the investigation, the job seeker must be given opportunity to respond to any adverse claims that have been made against them and disclose any further information they would like considered.

As a result of this discussion, Service Officers should record:

• the type of work and how long they had been working in the role, if relevant
• the job seeker's explanation for the dismissal
• any efforts made by the job seeker to retain their employment, including any further legal action or discussions with the union officials since leaving
• if the job seeker received training or information about expected behaviour and if any warnings were issued before the dismissal
• any other relevant information provided by the job seeker

A compliance action can only be applied if the work was suitable for the job seeker.

Additional considerations are required to assess suitability of work for job seekers who have a partial work capacity or are a principal carer parent.

The unemployment failure must be rejected if:

• the job is more than 15 hours per week, and
• the job seeker:
• has a partial capacity to work, or
• is a principal carer parent

For further information on assessing the suitability of work, see Suitable/unsuitable work.

If the provider reported the employment failure due to misconduct, the provider has already considered the suitability of the work for the job seeker. Assume the work was suitable unless the job seeker suggests it was not suitable. If this occurs, investigate if the work was suitable for the job seeker.

When assessing the employer's reason for terminating employment, it is important to make sure the reason for termination was for misconduct at work or about the employment and not because of the employee's general behaviour.

It is generally not be appropriate to apply compliance action if:

• the job seeker's individual circumstance led to an inability to produce satisfactory work
• the job seeker's personal circumstances resulted in an inability to control their behaviour or to understand that such behaviour was not appropriate
• dismissal was due to a very minor breach of conduct, for example as the job seeker was:
• being minimally late for work on a single occasion and being late did not result in a significant impact on the operation of the business
• not warned of dismissal and was genuinely and reasonably unaware that their action or inaction would result in dismissal

It is appropriate to apply compliance action if there is sufficient evidence to establish that dismissal was a result of:

• a deliberate failure to produce/deliver a reasonable amount of work
• unauthorised absences from duty without good reason
• improper behaviour or practices, such as theft, assault or harassment of other employees or customers
• actions that cause serious risk to the health or safety of other employees or customers
• actions that threaten the reputation, viability or profitability of the business

If the job seeker is seeking an independent investigation by an external body into the reasons for the termination of employment, this process is outside the unemployment failure investigation and decision.

PST-skilled staff or Services Officers with UNPP security resource must complete their investigation using the evidence available at the time of the decision.

If the external body subsequently changes the facts about the job seekers termination of employment, the job seeker can apply for a formal review of the unemployment failure or Unemployment Non-Payment Period (UNPP) decision.

Consider information obtained during any previous contact made with the employer. Further contact may be required to establish the facts, especially if evidence from the job seeker contradicts statements made by the employer.

Service Officers should attempt to contact the employer by phone. This ensures a timely investigation and provides opportunity for matters raised to be clarified with additional questions if required.

Further contact with an employer may be required:

• if no reason for separation was established before generating compliance action, or
• to clarify inconsistencies in the evidence gathered

If unable to contact the employer or the employer refuses to provide information, further evidence should be requested from the job seeker and the decision should be made based on the available evidence. See Gathering and assessing evidence for a job seeker compliance investigation.

If the evidence supports that the work was not suitable for the job seeker or the job seeker was not dismissed due to misconduct as an employee, the compliance action is rejected.

If the job seeker was dismissed from suitable work due to misconduct as an employee, the penalty imposed depends on the compliance system that the job seeker was managed under at the time the compliance action was generated.

See Table 4.

Service Officers with UNPP (at NCL only) or WNPPD security resources can finalise a decision about an unemployment failure or UNPP.

Consultation with local support, the PST Virtual Support Queue or a PST-skilled Social Worker is appropriate if the decision maker needs help:

• identifying or understanding the impact of a job seeker's circumstances impacting compliance has had on their reasons for unemployment
• assessing evidence around the non-compliance event
• making their final determination

PST Virtual Support Queue contacts should use all available reference material to research their query and if more help is required, contact the Level 2 Policy Helpdesk.

Recording the investigation and decision must include:

• the job seekers reasons
• all facts considered
• any evidence provided, and
• how the decision was reached

Did the job seeker voluntarily leave suitable work without a reasonable excuse or was dismissed from suitable work due to misconduct?

• Yes, the unemployment failure or UNPP should be applied, go to Step 3
• No, the unemployment failure or UNPP should be rejected, go to Step 8

The penalty that applies will depend on which job seeker compliance system the job seeker is managed under.

Is the job seeker managed under the Targeted Compliance Framework?

• Yes, go to Step 4
• No, go to Step 6

The penalty start date depends on if the job seeker was receiving a participation payment when the unemployment failure was committed.

Was the job seeker receiving a participation payment when the unemployment failure was committed?

• Yes, go to Step 5
• No, the job seekers unemployment preclusion period starts from the job seeker's date of unemployment, go to Step 7

If the job seeker is receiving a participation payment when the unemployment failure is applied, the cancellation date of effect is the first day of the instalment period following the date of the decision.

The duration of the Unemployment failure's post cancellation non-payment period is 4 weeks or 6 weeks if the job seeker left a relocation job within the 6 months from when they first received relocation assistance (for the same job) from their provider.

Go to Step 7.

If the job seeker is receiving a participation payment, the non-payment period start from the date that is more beneficial, either:

• the date of unemployment, or
• the first day of the instalment period following the date the decision is made that the UNPP applies

For job seekers claiming a participation payment, the UNPP will start from the job seekers date of unemployment if the UNPP is applied.

An applied UNPP requires Service Officers to consider hardship waiver provisions.

Is the UNPP failure to be applied?

• Yes, see Table 5
• No, go to Step 8

Before finalising the failure decision, the decision maker must be satisfied the workflow has the correct outcome.

If the outcome is not correct, check the main reason recorded for non-compliance earlier in the workflow and the response to the relocation assistance question in the Key Information page of the workflow.

Staff must explain to the job seeker:

• the decision to apply the failure
• how it will affect their claim for a participation payment or the participation payment they are receiving, and
• their internal review options

For more details on the internal review options, see Non-compliance with compulsory requirements - review and appeals.

Note: PST-skilled staff and Service Officers with UNPP security resource who are unable to tell the job seeker of the decision and/or internal review options, must only finalise the decision if contact with the job seeker has already occurred. A letter advising of the decision will be sent to the job seeker if they are not present when the Service Officer applies the penalty.

Is a new claim currently pending the outcome of the unemployment failure investigation?

• Yes, go to Step 9
• No, procedure ends here

If the unemployment failure or UNPP will not be applied, it is important to explain the decision to the job seeker and tell them that they should:

• work with their provider to find suitable work
• actively seek suitable work
• accept all offers of suitable work

For more information, see Rejecting a compliance action.

Once the compliance action is complete, if the job seeker requires immediate social work crisis intervention, a general referral may be appropriate in certain circumstances. See Social work service referral.

Note: PST-skilled staff and Service Officers with UNPP security resource who are unable to tell the job seeker of the decision should continue to finalise the decision. The job seeker will be notified of the decision.

When the new claim cannot be finalised at the same time as the unemployment failure decision, update the Progress of Claim DOC confirming the unemployment failure decision has been finalised. Include any other details that may help with finalising the outstanding new claim.

Update the claim status to In Process and remove the UNPPJSK keyword in Process Direct. To update the claim status:

• Open the job seeker's file in the Customer Summary screen
• Key the job seeker's CRN, select Go
• Select the search result that matches the job seeker file
• Select Transactions > The Claim > Status
• Select Edit
• From the drop down menu, change the status to In Process

To remove UNPPJSK keyword after updating the claim status to In Process:

• Within the claim transaction select Keywords
• Select Delete next to the UNPPJSK keyword
• Select Yes, to question, Do you want to Delete the keyword UNPPJSK?

Procedure ends here.

Before finalising the failure decision, the decision maker must be satisfied the workflow has the correct outcome.

If the outcome is not correct, check the main reason recorded for non-compliance earlier in the workflow.

When the penalty is applied, the penalty periods will automatically be calculated.

Staff must:

• check the penalty period and adjust the failure period start and end dates, if required, and
• record the investigation and decision, including:
• the job seekers reasons
• all facts considered
• any evidence provided, and
• how the decision was reached

In addition, staff must explain to the job seeker:

• the decision to apply the failure
• how it will affect their claim for a participation payment or the participation payment they are receiving
• their internal review options, and
• potential for payment under hardship waiver provisions

For more details on the internal review options, see Non-compliance with compulsory requirements - review and appeals.

When applying a UNPP, on the Decisions and Penalty screen, select one of the following options to start waiver action:

• adjust penalty period and waive, or
• waive only

Note: job seekers who are serving a UNPP can contact at any time to test their eligibility for a waiver by advising they are in severe financial hardship. Job seekers who contact to discuss a UNPP waiver can be transferred to PST.

Has the job seeker requested a review under the 'hardship provisions' while serving the UNPP?

• Yes, go to Step 3
• No, upon finalisation of the UNPP decision, consider the job seekers eligibility for a hardship waiver, go to Step 4

To access the Review Decision workflow:

• Go to the Participation Compliance Hub (BIPCW) screen
• from the Completed/Provider Compliance Actions table
• select the Compliance workflow from the completed UNPP
• choose the Review workflow

Select one of the following options from the Actions required: field:

• adjust penalty period and waive, or
• waive only

Record reasons and supporting evidence obtained to substantiate the decision to make payment during the UNPP under hardship provisions.

Completion of the Review Decision screen will automatically go to the Waiver Consideration page.

Gather evidence of the job seeker's liquid assets to determine if they would be in severe financial hardship because of the UNPP.

Severe financial hardship means the job seeker has less than:

• $5,000 if they are a member of a couple or have a dependent child. This includes the partner's liquid assets
• $2,500 for all others

When the UNPP is determined while processing a new claim, evidence of liquid assets provided by the job seeker as part of the new claim should be used when the amounts have been verified. If the liquid assets have only been verbally declared, verification will be required.

If the job seeker is receiving a payment, information from their record and other evidence may be used to determine the level of liquid assets available.

When a job seeker is re-testing their eligibility under UNPP hardship provisions, the unavoidable or reasonable expenditure for the Liquid Assets Test policy guidelines must be applied.

Will serving the UNPP cause the job seeker to be in severe financial hardship?

• Yes, go to Step 5
• No, go to Step 8

Gather evidence to establish if the job seeker:

• has significant family and caring responsibilities, including persons with a dependent child
• has an illness, impairment or condition that requires treatment and cannot afford this treatment after meeting their essential expenses
• has a diagnosed cognitive, neurological, psychiatric or psychological impairment or mental illness, or
• does not have access to safe, secure and adequate housing (which includes using emergency accommodation or an inability to meet accommodation expenses)

Evidence must be collected or be available on the record to confirm the job seeker falls within a 'class of person' specified by the Secretary of the Department of Employment and Workplace Relations.

Examples of evidence include but are not limited to:

• verifying that the job seeker or their partner has care of a dependent child based on the family assistance record
• medical certificate, verification of cost of prescriptions or other medical expenses as well as other essential expenses to confirm that the job seeker cannot afford treatment after meeting essential expenses
• medical certificate, doctor's report or psychologist assessment verifying a cognitive, neurological, psychiatric/psychological impairment or mental illness
• verification of residency in a refuge, social work assessment or other evidence that verifies job seeker does not have access to safe, secure and adequate housing

The 'class of person' must be re-established if the job seeker is re-testing their eligibility for payment under hardship provisions.

If the job seeker is required to provide evidence to support a hardship waiver, use the Request for Information workflow. See Requesting information (CLK). Note: this will only record the details of the request.

Use the Evidence UNPP Hardship Fast Note to record the evidence needed and its due date.

Is a waiver being considered as the job seeker is unable to meet their accommodation expenses?

• Yes, go to Step 6
• No:
• and the job seeker satisfies the class of persons criteria for other reasons, see Step 7
• and the job seeker does not satisfy the class of persons criteria, see Step 8

The safe, secure and adequate housing provision allows for payment to be reinstated when the job seeker is at risk of homelessness as they cannot afford their current accommodation and there are no other feasible housing options.

A job seeker can have their payment reinstated at the point their liquid assets are equivalent, or less than, the combined amount of their next accommodation payment plus one fortnightly participation payment at the maximum basic rate.

To establish eligibility under this provision, confirm the job seeker's regular accommodation expenses including the amount payable and frequency of payment.

Examples of evidence for a non-homeowner:

• Verified details recorded on the Accommodation Circumstances (AC) screen. Further verification would be required if the job seeker asserts that this does not correctly reflect their circumstances, or
• Rent receipts or a lease agreement or other written evidence of accommodation costs when a formal arrangement exists. A verbal statement from the supplier of accommodation (hostel, boarding house, parents if living at home) will be sufficient for informal rent or board

Examples of evidence for a homeowner:

• a recent letter or statement indicating a regular mortgage payment is required
• when the mortgage is being paid as a line of credit then hardship may be established if a regular payment is required to be paid

Determine if the job seeker has sufficient liquid assets to cover immediate accommodation/living expenses by:

• calculating the liquid assets currently available to the job seeker and their partner (if applicable), and
• determining the maximum fortnightly payment, the job seeker may receive (basic rate not including add-ons)

Is the liquid asset amount less than or equal to the fortnightly payment amount plus the next accommodation payment due?

• Yes, the UNPP can be waived, go to Step 7
• No:
• a hardship waiver cannot be recorded
• tell the job seeker to make contact as soon as their liquid assets fall under this benchmark to assess a hardship waiver
• warn the job seeker that a reduction in liquid assets will be assessed against the unavoidable or reasonable expenditure test. When a critical or unavoidable expense is not incurred, a waiver may not be approved or may be deferred despite the job seeker not being able to pay their accommodation costs
• go to Step 8

An applied UNPP can be waived if the job seeker is:

• a class of persons specified by the relevant legislative instrument, and
• serving the non-payment period would cause the person to be in severe financial hardship

When a response of Yes has been selected for both questions, the system will automatically default the field 'What is the decision on this waiver action?' to 'Waiver the non-payment period'.

Note: the Date field will pre-populate with the system date, however, if a job seeker requested payment under UNPP hardship provisions earlier than this date, the date of contact should be recorded. This information is in the workflow.

In the 'Please select the reason for waiving the penalty period' field, select one of the following:

• Unemployment non-payment period hardship - full
  This option removes the entire non-payment period. It should only be selected if the job seeker requests assessment of eligibility:
• before the UNPP start date, or
• as soon as they become aware of the UNPP being applied or reapplied. This usually means the job seeker has contacted within 48 hours of being notified of the UNPP decision. If a verbal notice did not occur, the job seeker contact should be within 2 weeks of the original decision to apply the UNPP. This allows the job seeker time to receive and act on the notice when verbal notice was not given
• Unemployment non-payment period hardship - partial
  Select this option if the job seeker requests an assessment of eligibility while currently serving a UNPP and the provisions for a full waiver have not been met. When this option is selected a new UNPP end date must be recorded. This date should be the later of:
• the day before the waiver was requested, or
• the day before the job seeker met eligibility for hardship provisions

Is the job seeker eligible for a UNPP hardship waiver?

• Yes, go to Step 9
• No, go to Step 8

• Record the assessment of eligibility for payment under hardship provision using the following fields on the Waiver Consideration page:
• Is the job seeker in a 'class of person' specified by the Secretary?
• Will serving the UNPP cause the job seeker severe financial hardship?

When a response of No has been selected for either of these questions, the system will automatically default the field 'What is the decision on this waiver action?' to 'Do not waive the non-payment period'

• Select the check box to indicate the job seeker has been verbally notified of the decision and use the Next button to continue
• Check the Warnings and Errors (SWE) screen and correct any errors. Once all errors have been fixed select Assess
• Check the Entitlements (ELD) screen and select Finish
• Add any comments to the Notes and select Finalise

Procedure ends here.

When a response of Yes is selected for both questions, the system will automatically default the field 'What is the decision on this waiver action?' to 'Waiver the non-payment period'.

In the 'Please select the reason for waiving the penalty period' field, select one of the following:

• Unemployment non-payment period hardship - full
  This option removes the entire non-payment period. It should only be selected if the job seeker requests assessment of eligibility:
• before the UNPP start date, or
• as soon as they become aware of the UNPP being applied or reapplied. Generally, this means the job seeker has contacted within 48 hours of receiving verbal notification of the UNPP decision. If verbal notification did not occur, then job seeker contact should be within 2 weeks of the date the UNPP decision was recorded. This is to allow the person time to receive and act on the notice when they have not been verbally notified of the application of the penalty and the availability of waiver
• Unemployment non-payment period hardship - partial
  Select this option if the job seeker requests an assessment of eligibility while currently serving a UNPP and the provisions for a full waiver have not been met. When this option is selected a new UNPP end date must be recorded. This date should be the later of:
• the day before the waiver was requested, or
• the day before the job seeker met eligibility for hardship provisions

If the waiver reason 'Unemployment non-payment period hardship - full' is selected, payment will restart from the start date of the UNPP.

If the waiver reason 'Unemployment non-payment period hardship - partial' is selected, payment will restart the day after the UNPP end date recorded.

• Select Next to continue
• Check warnings and errors (SWE) screen and correct any errors. Once all errors have been corrected, select Assess
• Check the Entitlements (ELD) screen and select Finish
• Add any comments to the Notes and select Finalise

Was the UNPP generated by Services Australia?

• Yes, a 'RapidConnect' appointment may be required. For further information, see RapidConnect
• No, if the job seeker is present or on the phone:
• tell the job seeker that while receiving a payment under hardship provisions they are required to continue to comply with the current terms of their Job Plan (unless an exemption from mutual obligation requirements is granted)
• record that the job seeker is aware of these requirements in a DOC