Granting LWOP for outside employment
Did you know it’s possible for CSS and PSS customers to have contributions paid into their account while they’re on leave without pay (LWOP) to work for an ineligible employer (such as a State government agency or private company)? This is sometimes known as LWOP in the public interest or LWOP in the interest of the service.
11 Feb 2020
An APS agency head must be satisfied that the outside employment is in the interest of the APS for the contributions to be accepted. If you’re a non-APS agency, someone in an equivalent position – such as the Chief Executive Officer - will need to be satisfied that the employment is in the interests of the agency.
The ineligible employer must also agree to pay contributions. They’ll need to ensure the following contributions are paid to you:
- productivity,
- member contributions, and
- additional death and invalidity cover (ADIC) premiums for applicable PSS customers.
Contributions are based on your employee’s last birthday salary with you, so you will need to explain this to the other employer.
You can also bill them an additional amount, for example, to cover your employer liability payment. If you choose not to charge them, you will still need to pay the liability amounts to us.
The billing arrangements for how you receive the contributions from the ineligible employer is up to you, however you must continue to send us the contributions through your regular fortnightly pay file.
Remember: this isn’t the case if an employee has transferred to a participating employer in CSS or PSS, no matter the reason for that move. If this is the case, you report the employee as being on transfer through the pay file and their new employer will pay us directly.