Managing compliance with compulsory requirements 001-18030200

The job seeker compliance system is aimed at encouraging job seekers to meet their compulsory mutual obligation requirements which may include looking for work and participating in approved activities. The compliance system helps in reinforcing expectations with job seekers who are not looking for work and meeting compulsory requirements through the application of financial penalties. At the same time, job seekers who have a good reason for not meeting their requirements are not penalised.

There are 2 different job seeker compliance systems used to manage non-compliance with compulsory requirements. They are the:

• Targeted Compliance Framework, and
• Job Seeker Compliance Framework

The following key principles underpin both systems:

• job seekers are expected to remain actively engaged with employment services and to participate to the full extent of their capacity and capability to help ensure the earliest possible entry (or re-entry) to the workforce
• non-genuine job seekers who deliberately avoid meeting requirements will incur financial penalties

Job seekers managed under this compliance system include those who receive services from Workforce Australia, Workforce Australia Online and Disability Employment Services (DES).

The Targeted Compliance Framework has a strong emphasis on personal responsibility. Job seekers negotiate compulsory requirements with their Employment Services Provider. They are encouraged to disclose any personal circumstances that may impact their ability to comply (for example, when negotiating their Job/Participation Plan) to help ensure requirements are appropriate and achievable. They are expected to maintain contact with their provider, engage to their full capacity and record their own attendance at requirements, including activities.

Job seekers who do not meet a compulsory requirement in their job plan or fail to enter into a job plan, commit a mutual obligation failure. A mutual obligation failure means that participation payments are not payable until the job seeker complies with a re-engagement requirement notified by their provider.

All job seekers subject to the Targeted Compliance Framework will start in the green zone with zero demerits. A job seeker will accrue a demerit if they commit a mutual obligation failure without a valid reason, moving to the warning zone. Providers are fully responsible for managing demerits.

To ensure that job seekers have the capability to meet compulsory requirements, accrual of:

• three demerit points in 6 active months triggers a Capability Interview conducted by the provider, and
• five demerit points in 6 active months triggers a Capability Assessment conducted by Services Australia

Job seekers move into the financial penalty zone if both a Capability Interview and a Capability Assessment find the job seeker's current Job or Participation Plan is appropriate. In this zone, fortnightly payments are dependent on full compliance with compulsory requirements. Those who continue to be non-compliant once they have moved to the financial penalty zone will incur a financial penalty, or payment cancellation with a 4 week wait to receive payments if they reapply.

Job seekers who refuse suitable employment without reasonable excuse commit a work refusal failure. A job seeker who voluntarily leaves suitable employment without a reasonable excuse or is dismissed due to misconduct commits an unemployment failure. Payment is cancelled and customers have a 4 week, or in some cases 6 week, wait to receive payments if they reapply. This applies regardless of the zone the job seeker is in at the time.

The Job Seeker Compliance Framework applies to declared program participants who are receiving a participation payment. Declared program participants are all job seekers in the Community Development Program (CDP).

Providers have responsibility for monitoring job seeker engagement with mutual obligation requirements.

CDP providers manage attendance at provider appointments and are responsible for actioning Non-Attendance Reports (NAR), including notifying reconnection requirements, and recording appropriate outcomes in the Online Diary in a timely manner.

Providers submit a Participation Report or Provider Attendance Report where they consider investigation of a non-compliance event by Services Australia is required.

Services Australia has responsibility for making decisions under Social Security legislation relating to non-compliance. This means that, once reported by the CDP provider, Services Australia is responsible for determining whether a connection failure, non-attendance failure, reconnection failure, No Show, No Pay failure, or serious failure has occurred, or an Unemployment Non-Payment Period (UNPP) will be applied. Services Australia also conduct Comprehensive Compliance Assessments (CCA) where a pattern of non-compliance has emerged, before a decision is made to apply a serious failure for persistent non-compliance.

The effectiveness of both job seeker compliance systems is reliant on providers and Services Australia working together to keep job seekers actively engaged.

This means applying compliance policy with consistency and fairness by:

• delivering strong, consistent messages about the importance of complying with mutual obligation requirements at every participation contact
• re-engaging job seekers with their requirements as quickly as possible
• making evidence-based decisions that apply compliance and other relevant policies and legislation consistently

Job seekers will transition between job seeker compliance systems if they change residential address and either commence in, or cease to participate in the Community Development Program (CDP).

For information on the impact a jobseeker's change of address has on outstanding compliance action or suspensions, see Job seeker change of address.

Note: it may take a number of hours for a change in address to trigger a transfer to a new provider. The transfer can be delayed if the record is locked by staff or customers.