Severance pay and end of term leave liabilities


Severance payments are additional to Annual Leave and Long Service Leave employee entitlements, and are made “to cushion the economic hardship suffered by the terminating staff member by providing them with some compensation for the loss of employment” (ANU HRD). Severance pay information is available in the ANU Enterprise Agreement.

The School may underwrite any severance pay liability (excluding employee entitlements such as annual & long service leave) that may arise during their employment except for:

  • Short term extensions which trigger a severance payment.
    • Extensions lasting less than 6 months which under the Enterprise agreement trigger the requirement for severance pay will require the total severance amount to be funded by the Supervisor, the granting body or other funding sources (Non R-Ledger).
  • Severance for a position from another School.
    • PRIOR to employment, agreement needs to be made with other School/Area re severance payment for fixed term/CCF staff for a pro rata payment model. In general, an agreement would expire after 2 years and revert to School responsibility.

Annual Leave (AL)

Ongoing positions

  • AL accrual limit is 6 weeks (210 hours). Levels need to be kept under this limit.
  • Liability funded by School.

Non-ongoing positions, including fixed term and CCF

  • It is expected that the incumbent takes all annual leave in-service. Any annual leave liability owing at the end of the appointment may be the responsibility of the Supervisor, Grant holder or Department (Non R Ledger).
  • The School may consider funding up to 6 weeks only, in certain circumstances where a business need requires it. If this is the case, any liability over 6 weeks remains the Supervisor responsibility (Non R Ledger).
  • Confirmation is required from SM and Director.

Long Service Leave (LSL)

LSL accrual limit is 15 weeks (525 hours). Levels need to be kept under this limit.

Long Service Leave is funded 100% from the University’s Long Service Leave pool and will be funded in arrears automatically.

Resposible officer

School Manager -