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Remuneration and Benefits Procedure - Performance Pay

Section 1 - Background and Purpose

(1) The University is committed to recognising and rewarding excellent performance.

(2) The purpose of this procedure is to ensure consistency, transparency, fairness and equity when applying performance payments.

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Section 2 - Scope

(3) This Procedure applies to:

  1. all fixed term and ongoing staff who participate in the Career Success Annual Cycle.

(4) The benefits contained in this Procedure are subject to any annual provision the University makes for performance payments based on the University’s financial performance. Therefore the Vice-Chancellor has absolute discretion to amend the benefit outcomes on an annual basis.

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Section 3 - Policy Statement

(5) Refer to the Remuneration and Benefits Policy.

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Section 4 - Procedures

(6) Performance pay outcomes are determined by the final overall performance rating outcome documented in each staff member’s Career Success Annual Plan. The following table details the performance pay outcome for each Career Success performance rating:

Overall Performance Rating Performance Pay Outcome (applies to all fixed term and ongoing staff)
5. Outstanding 4% Bonus Payment
4. Exceeds Expectation 1% Bonus Payment
3. Meets Expectation None
2. Needs Improvement Increment Withheld (where incremental progression is available)
1. Unsatisfactory Increment Withheld (where incremental progression is available)

(7) The Bonus Payment is calculated on a staff member’s base salary plus any salary loadings, as at the 31st March in the year the Career Success Annual Cycle is completed. The payment will normally be paid in the second pay period in July following the Career Success parity and approval processes.

(8) Staff that commence with the University after the start of the Career Success Annual Cycle and who qualify for a Bonus Payment will receive a pro-rata portion of the payment.

(9) The withholding of increments must be in accordance with conditions set out in the Collective Agreement. Staff that receive a performance rating outcome of 3, 4, or 5, and where incremental progression is available, will receive an increment on their service anniversary date.

(10) The approval of final overall performance rating outcomes is in accordance with the parity approval details in the Performance and Development (Career Success) Procedure.

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Section 5 - Definitions

(11) For the purpose of this Procedure:

  1. Collective Agreement: refers to the current La Trobe University Collective Agreement.
  2. Career Success: is the annual individual staff work and performance plan deployed at the University.
  3. Performance Pay is:
    1. A one off annual bonus payment; and
    2. The increment increase within classification levels contained in the Collective Agreement.