12. Compliance

Supporting Documents for this Chapter

Supporting Documentssign-in required (sign-in required)

Targeted Compliance Framework (General)

• Targeted Compliance Framework (TCF) workflow

• TCF Poster

Non-compliance reporting

• Provider Action - Demerit and payment suspension triggers

• Valid Reason Assessment

• Manual Demerit Removal

• Finalising Re-engagement Requirements

• Suitable Work Provider Fact Sheet

12.1 Chapter OverviewCopy citation · §12.1

This Chapter explains what happens when a Participant does not comply with their participation requirements as outlined in Chapter 5: Participation requirements. It also details the actions a Provider must take in response to non-compliance.

This Chapter:

• outlines the actions that must be taken when a Participant has a Meaningful Engagement Job Plan, and the Participant is not meeting this Meaningful Engagement Requirement

• provides information about when and how a Provider can compel a Participant on a Meaningful Engagement Job Plan to attend a Contact Appointment

• provides information about the Targeted Compliance Framework (TCF) and outlines how it applies to Participants (Mutual Obligation) in Inclusive Employment Australia

• describes what happens when Participants (Mutual Obligation) commit Mutual Obligation Failures, Work Refusal Failures and Unemployment Failures and Provider actions in response — including guidance on assessing reasons for failures and ensuring correct and timely reporting against Participant’s Mutual Obligation Requirements

• provides information about Capability Interviews and Capability Assessments — safeguards under the TCF determine the suitability of a Participant’s Job Plan and Mutual Obligation Requirements, and

• provides information about the compliance arrangements for DSP Recipients (Compulsory Requirements), who are not subject to the TCF.

Participants (Voluntary) do not have compulsory requirements. A Participant (Voluntary), who is not volunteering while they have an Exemption to their participation requirements, must be Suspended if they are not meaningfully engaging and then be Exited if they do not make contact with the Provider — refer to Section 3.5 Suspensions and Volunteer Periods and Section 3.6 Exits.

Providers should be aware of the role of the National Customer Service Line (NCSL) when reading this Chapter.

12.2 Meaningful Engagement Requirement non-compliance and associated actionsCopy citation · §12.2

This Section applies to Participants (Mutual Obligation) and DSP Recipients (Compulsory Requirements).

12.2.1 Confirming failure to meet the Meaningful Engagement RequirementCopy citation · §12.2.1

A Participant with a Meaningful Engagement Job Plan must meet the Meaningful Engagement Requirement as described in Section 5.5 Meaningful Engagement Requirement.

Before confirming a Participant has failed to meet the Meaningful Engagement Requirement, Providers must seek to discuss the reasons why the Participant has not appropriately engaged.

Providers have discretion in whether they will accept a reason provided or not. Providers are encouraged to take what the Participant says in good faith and use their judgement when determining whether to accept the reason. At a minimum, a good reason would that one that would otherwise be considered a Valid Reason (for a Mutual Obligation Failure) or reasonable excuse (for DSP non-compliance). Examples of good reasons include, but are not limited to:

• conflict with work hours

• illness or injury

• mental health issues

• family and caring responsibilities

• inability to get to an Appointment or Activity (for example, IT failure, transport issues, issues with childcare)

• death in the family, or

• other personal crisis.

If a Provider is unable to contact the Participant to discuss overall levels of engagement and/or a failure to meet the Meaningful Engagement Requirement, this contributes to the Pattern of Disengagement.

Evidence requirement — Providers must document when they do not accept a reason provided and what the reason given was.

Evidence requirement — Each recorded instance of failing to meet the Meaningful Engagement Requirement, without a good reason, forms part of the Documentary Evidence for determining a Participant has a Pattern of Disengagement.

System step — Providers may record details of each instance of failure to meet the Meaningful Engagement Requirement, without a good reason, using comment functionality in the Program Summary on the Department’s IT Systems.

System step — Providers may record the reasons provided and their assessment of why the Participant did not have good reason using comment functionality in the Participant’s Summary on the Department’s IT Systems. Providers must not use the Program Summary to capture reasons given due to the risk of a privacy breach.

12.2.2 Determining a Pattern of DisengagementCopy citation · §12.2.2

Once there are multiple instances of failing to satisfy the Meaningful Engagement Requirement, the Participant has an ‘emerging’ Pattern of Disengagement.

During a Contact, including engagement via email or SMS (if the participant has agreed to these methods of contact), Providers seek to discuss if there are factors affecting their capacity to engage. This discussion may include identifying if:

• the Participant understands how to meet the Meaningful Engagement Requirement

• the Participant has a good reason for not fully satisfying the Meaningful Engagement Requirement

• there has been a change in circumstances that is impacting their capacity to engage, which would prompt a review of the tasks and activities

• the tasks and activities the Participant had been directed to participate in are considered meaningful to the Participant or if there are better alternatives for reaching their Employment Goal(s), and/or

• the Participant requires more support to be able to undertake the tasks and activities as agreed.

This review should seek to confirm that tasks and activities are suitable — that is, appropriate for their circumstances and the Participant is capable of undertaking the tasks and activities. If the Participant’s circumstances have changed, Providers should adjust what tasks and activities the Participant will do as part of meaningful engagement.

Before a Participant can be found to have a Pattern of Disengagement, a Provider must:

• take steps to increase a Participant’s overall level of engagement

• warn the Participant that they might not be engaging at a level required to continue to meet their participation requirements through the Meaningful Engagement Requirement, and

• warn the Participant that they are at risk of having to enter into a Detailed Job Plan, having repeatedly failed to meet the Meaningful Engagement Requirement.

Providers have discretion in how to issue a warning to the Participant but should seek to do so during a Contact Appointment due to the sensitive nature of the discussion. As part of the warning, the Provider must inform the Participant of their concerns. The warning should ensure that the Participant is aware that continued disengagement, without a good reason, will result in the determination that they have failed to engage appropriately (i.e. have demonstrated a Pattern of Disengagement). This will result in the Participant having to enter into Detailed Job Plan with compulsory requirements that must be met to continue to receive Centrelink payments.

Evidence requirement — Providers must document that they have issued a warning to the Participant.

System step — Providers may record that a warning was issued using comment functionality in the Program Summary.

Once there are further failures to meet the Meaningful Engagement Requirement — after the Participant has been issued a warning and attempts have been made by the Provider to increase engagement — the Provider may determine that the Participant has a Pattern of Disengagement.

Note: Providers have discretion around whether the actions undertaken by the Participant constitute a Pattern of Disengagement. There is no set rule to be followed, noting that the basis of a Pattern of Disengagement is multiple failures to meet the Meaningful Engagement Requirement without a good reason. As general guidance, a confirmed Pattern of Disengagement would be where a Participant has not meaningfully engaged more than once, including at least one instance of not engaging after being issued a warning, and these occurrences have taken place within any 3-month period.

A Provider must schedule a face-to-face Contact Appointment to confirm there is a Pattern of Disengagement. At this Appointment, the Provider must:

• advise the Participant that they have demonstrated a Pattern of Disengagement

• outline the evidence for finding the Participant has a Pattern of Disengagement, drawing upon when the Participant has failed to meet the Meaningful Engagement Requirement, and

• seek to identify if the Participant has any good reasons not previously disclosed that would mitigate the Pattern of Disengagement.

If, after the above discussion, no additional reasons are provided that a Provider deems acceptable to mitigate the Pattern of Disengagement, the Provider must create a Detailed Job Plan for the Participant and explain the consequences of failing to meet any of the compulsory requirements in their Job Plan — refer to Section 4.7 Contents of a Detailed Job Plan.

Evidence requirement — Providers must add a file note when a Participant has a confirmed Pattern of Disengagement. The file note should include a summary of the Documentary Evidence used to support this determination.

System step — Providers should record that a Participant has a Pattern of Disengagement using comment functionality in the Program Summary.

12.2.3 Reasonable attempts to contact the ParticipantCopy citation · §12.2.3

Providers must make reasonable attempts to contact a disengaged Participant before they can be compelled to attend a Contact Appointment.

This means that the Participant must have 3 opportunities to attend a voluntary Contact Appointment before a Provider can schedule a compellable / compulsory Contact Appointment.

These attempts need to occur over the shortest timeframe possible while still ensuring the Participant receives sufficient notice of the requirement to attend a Contact Appointment.

If the Participant has not attended a voluntary Contact Appointment after a Provider has made 3 reasonable attempts to contact the Participant, the Provider can notify the Participant to attend a compulsory Contact Appointment. Compliance actions apply if the Participant fails to attend a compulsory Contact Appointment.

System step — All attempts to contact the Participant must be documented using comment functionality in the Participant’s Summary on the Department’s IT Systems.

Attempting to schedule Contact Appointment with a Participant

Providers should seek to contact the Participant, via their preferred contact method (which may include email or SMS), to schedule the Contact Appointment at a mutually agreed time.

The nature and frequency of attempts to contact the Participant should be based on the Provider’s understanding of the Participant, the Participant’s receptiveness to engage, and the different types of Engagement Methods available.

System step — Note: If contact through the Participant’s preferred contact methods is unsuccessful, Providers should consider using alternative methods for contact. A Participant’s preferred contact method is listed in the Department’s IT Systems under the ‘Personal details’ screen of the Participant’s profile.

Where contact is successful, Providers must agree a suitable time with the Participant to meet. Providers must inform Participants that, if they fail to attend, they then may be required to attend a compulsory Appointment that could result in their Income Support Payments being suspended by Services Australia. Unless otherwise agreed with the Participant, the Appointment scheduled should be made at least 2 Business Days into the future.

Where contact is not successful, Providers can schedule a time based on availability in the Participant’s Electronic Calendar — considering any Personal Events. The Appointment scheduled should be made at least 5 Business Days into the future if the Participant is to be notified via email or at least 8 Business Days into the future if the Participant is to be notified via letter. Providers may also rely on existing Contact Appointments booked in the Participant’s Electronic Calendar.

System step — The Contact Appointment must be in the Participant’s Electronic Calendar. The Provider must ensure the Contact Appointment is entered as a voluntary requirement. The Department’s IT Systems will automatically create relevant notifications when scheduling the Contact Appointment.

Scheduled Contact Appointments

Once a Contact Appointment has been scheduled, if the Participant either reschedules or does not attend, this will form part of the 3 opportunities provided to the Participant to attend a Contact Appointment. This is regardless of the Participant having what would otherwise be considered a valid reason or reasonable excuse.

System step — If the Participant tells the Provider they cannot attend the Appointment before the scheduled start time, the Provider must record a result of ‘Rescheduled’ in the Department’s IT Systems.

System step — If the Participant does not attend the scheduled Appointment, the Provider must record a result of ‘Did Not Attend’ in the Department’s IT Systems by the end of the day on which the Contact was scheduled to occur.

After a Provider has recorded a result of ‘Rescheduled’ or ‘Did Not Attend’, the Provider must:

• schedule another Contact Appointment at next available opportunity, if fewer than 3 attempts have been made to deliver the Contact Appointment, or

• schedule a compulsory Contact Appointment, if 3 attempts have been made to deliver the Contact Appointment. This process is described in Section 12.2.2 Compellable Contact Appointment.

12.2.4 Compellable Contact AppointmentCopy citation · §12.2.4

Under Social Security Law, Provider staff are delegated to make the decision to issue a notice to attend a compulsory Appointment.

Providers can book a compulsory Contact Appointment in a Participant’s Electronic Calendar where a Participant (Mutual Obligation) or DSP Recipient (Compulsory Requirements) has a Meaningful Engagement Job Plan in the following circumstances:

• Participant has a Pattern of Disengagement, and the Provider has made a reasonable attempt to schedule Contact Appointments with the Participant

• Participant has committed an apparent Work Refusal Failure, or

• Participant has committed a potential Unemployment Failure.

The Participant will receive a formal notification that they are required to attend a compulsory Contact Appointment under Social Security Law.

Note: Providers must not use the option of scheduling a compulsory Contact Appointment for a Participant with a Meaningful Engagement Job Plan for any other reason than listed above. Failure to attend a compulsory Appointment may result in compliance actions under the TCF.

System step — When scheduling the Appointment, Providers must manually select that it is compulsory. Detailed instructions on scheduling an Appointment are available in the Booking, rescheduling or cancelling a Provider Contact Appointment task card.

12.3 Targeted Compliance FrameworkCopy citation · §12.3

This Section applies to Participants (Mutual Obligation).

The Secretary of Employment and Workplace Relations (the ‘Employment Secretary’ under Social Security Law’) has taken decisions to pause some parts of the TCF, while legal and IT assurance reviews are underway.

Formal responsibility for administering the TCF sits with the Employment Secretary. Various decisions and functions have been delegated to officers of the Department of Employment and Workplace Relations, Services Australia, and Personnel engaged by a contracted employment service provider. As such, the Department and employment service providers are jointly responsible for administering this framework in accordance with the systems and guidelines developed by the Department.

In taking these decisions, the Secretary has considered her current level of confidence in how the system, and decision-making processes within the system, are operating and the impact of these decisions on participants. Of critical importance is that people subject to the TCF are often our most vulnerable, including those who are homeless, First Nations people and people with disability.

While this is being resolved, participants will not have their payments:

- reduced for persistently failing to meet their mutual obligations requirements (as applied under 42AF(2)(c) of the Social Security (Administration Act) 1999 (the Act)

- cancelled for failing to meet their mutual obligations requirements (as applied under 42AF(2)(d)) of the Act

- cancelled or have a 4-week time preclusion period applied (not being able to apply for or receive a social security payment) for a ‘work refusal failure’ (as defined in 42AD and applied under 42AG of the Act), and

- cancelled or have a 4-week time preclusion period applied (not being able to apply for or receive a social security payment) for an ‘unemployment failure’ (as defined in 42AE and applied under 42AH of the Act), and

- cancelled where a person has not complied with a ‘reconnection requirement’ within 4 weeks after being notified of that requirement (as applied under 42AM of the Act).

Sections throughout these Guidelines reflect these decisions.

For further information on the specifics of these recent decisions, please see the Department of Employment and Workplace Relations website — Assuring the integrity of the Targeted Compliance Framework.

For Participants (Mutual Obligation), instances of non-compliance with their requirements are actioned under the TCF, excluding non-compliance with the Meaningful Engagement Requirement.

The TCF encourages Participants to engage with their Provider, take personal responsibility for managing and meeting their Mutual Obligation Requirements, actively look for work (within their assessed work capacity, if they are able), and improve their job prospects.

Participants commit Mutual Obligation Failures if they fail to comply with their Mutual Obligation Requirements. Participants commit a Work Refusal failure if they refuse or fail to accept an offer of suitable employment (subject to certain exemptions).

A guide to types of failures for Participants with Mutual Obligation Requirements can be found in the Social Security Guide — see 3.11.13.30 Types of failures | Social Security Guide.

Note: Providers must not use or threaten to use the TCF to compel Participants to supply payslips or other evidence of Employment. The Department will thoroughly investigate any claims of this nature.

Key elements of the TCF

Under the TCF, a Participant’s Income Support Payment may be:

• suspended if they commit a Mutual Obligation Failure, or

• suspended and/or cancelled if they commit a Work Refusal Failure.

Participants will accrue Demerits if they commit a Mutual Obligation Failure without a Valid Reason.

The TCF includes safeguards to ensure a Participant’s Mutual Obligation Requirements were tailored to the Participant’s circumstances and capacity. This includes the Participant attending a capability review, which will be:

• a Capability Interview with the Provider when they accrue a total of 3 Demerits, and

• a Capability Assessment with Services Australia when they accrue a total of 5 Demerits.

Penalties for Work Refusal Failures reinforce the principle that Income Support Payments for Participants should only be available to those who are genuine in their efforts to move into paid work.

Note: Work Refusal Failures are currently suspended until otherwise advised.

The TCF comprises 3 zones for Participants, as outlined in the table below.

The key things that determine if a Participant moves through the zones are:

• the accrual of a Demerit

• how many Demerits are accrued in a particular period, and

• the outcomes of any capability reviews.

TCF Zones

Example of a table styled with the second of the two DSS table styles. It is populated with food-related dummy data.

Interaction with Job Plan types

A Participant (Mutual Obligation) may either have a Meaningful Engagement Job Plan or Detailed Job Plan — see Chapter 4: Job Plans. The application of the TCF will depend on the Participant’s Job Plan type.

A Participant (Mutual Obligation) with a Meaningful Engagement Job Plan may have their payment suspended and, if they do not have a Valid Reason, accrue Demerits if they do not:

• attend, or act in an appropriate manner, at their Initial Interview

• agree to their Job Plan, or

• attend, or act in an appropriate manner, a compulsory Contact Appointment with their Provider.

A Participant (Mutual Obligation) with a Detailed Job Plan may have their payment suspended and, if they do not have a Valid Reason, accrue Demerits if they do not:

• attend or act in an appropriate manner at their Initial Interview, noting that a Participant may transfer Providers which will result in an Initial Interview with the Gaining Provider

• agree to their Job Plan

• attend, or act in an appropriate manner, compulsory Appointments with their Provider

• satisfy their Job Search Requirement, or

• meet the compulsory tasks and activities detailed in their Job Plan, such as a Mandatory Activity, Job Interviews and Job Referral tasks.

Irrespective of the Job Plan type, a Participant (Mutual Obligation) may be subject to compliance actions if, without a Reasonable Excuse, they do not accept suitable work or start a job as planned — that is, commit a Work Refusal Failure.

Note: Work Refusal Failures are currently suspended until otherwise advised.

12.3.1 Provider ObligationsCopy citation · §12.3.1

The Provider’s main obligations relating to the TCF include:

• checking a Participant’s ability to self-report their own participation — refer to Section 5.10 Personal responsibility for reporting attendance

• ensuring the Participant’s Mutual Obligations Requirements are set out in their Job Plan (including any Job Search Requirement, where applicable) — refer to Chapter 4: Job Plans and Chapter 5:Participation requirements

• ensuring the Participant’s Mutual Obligations Requirements in a Detailed Job Plan are suitable and tailored to their personal circumstances and commitments — refer to Chapter 5: Participation requirements

• actively checking and recording each Participant’s attendance, as appropriate

• actively checking and recording each Participant’s compliance with their Mutual Obligation Requirements, and

• timely and correct recording in the Department's IT Systems when a Participant has committed a Mutual Obligation Failure or Work Refusal Failure— refer to Section 12.4 Compliance actions - Mutual Obligation Failures and Section 12.5 Compliance actions - Work Refusal Failures.

Note: Work Refusal Failures are currently suspended until otherwise advised.

(Deed Reference(s): Clause 135.1,136.1, 136.2, 136-142)

Training

Provider staff must successfully complete all mandatory TCF training on the Learning Centre at least every 12 months.

It is essential that each staff member understands the TCF.

(Deed Reference(s): Clause 61.3, 143)

Ensuring a Participant understands their rights and responsibilities

The Provider must ensure the Participant is aware of their rights and obligations under Social Security Law, including:

• their Mutual Obligation Requirements and what they must do to meet their requirements

• that in meeting the Meaningful Engagement Requirement they can meet their Mutual Obligation Requirements

• their personal responsibility to self-report their attendance at Appointments and Activities (unless the Participant is assessed as not being capable of self-reporting) — refer to Section 5.10 Personal responsibility for reporting attendance

• the option to reschedule Appointments, Activities or Job Interviews if contact with a Provider is made in advance of the start time and they can provide an Acceptable Reason as to why they are unable to attend

• the circumstances in which a Mutual Obligation Failure can occur and the consequences of not meeting their Mutual Obligation Requirements, including possible financial penalties

• the circumstances where a Work Refusal Failure can occur and the consequences of refusing or not accepting suitable Employment, and

• the circumstances in which they may have a Re-engagement Requirement and the consequences of not meeting this requirement.

(Deed Reference(s): Clause 134.1, 134.19)

All Participants have the right to ask for a review of a decision made under Social Security Law through the Social Security Appeals Process.

The application of a formal review, and the right to appeal the decision to a tribunal or court, applies to decisions to suspend a Participant’s Income Support Payment because of non‑compliance, and decisions made by Services Australia to reduce or cancel their Income Support Payment.

If a Participant does not agree with a decision that has resulted in a payment suspension or financial penalty, they can ask Services Australia to review the decision. A review can be requested by calling either Services Australia on their regular payment line (which can be found on the Services Australia website), appearing in person at a Services Australia service centre, or by downloading and submitting an Explanation or formal review of a decision form (SS351). More information for Income Support Payment recipients on the request for an explanation or formal review of decisions is available on the Services Australia website.

Decisions related to Demerits, a Participant’s placement in the TCF zones and the requirement to change to a Detailed Job Plan are not decisions based on Social Security Law, but rather decisions made under Government policy. As such, Participants cannot appeal or ask for a formal review using the same processes as those that apply for decisions under Social Security Law. However, Participants can dispute these decisions using the following process.

• Participants should discuss their concerns about these decisions with their Provider. The Provider is responsible for providing the Participant with an explanation of the decision and initial reconsideration of the decision

• If they don’t feel comfortable talking to their provider or still wish to dispute the decision after a discussion with their Provider, they can contact the NCSL (details for which can be found on the Workforce Australia website). By contacting the NCSL, the Participant is in effect making an Inclusive Employment Australia-related Complaint, and

• If required, the Provider must action Complaints that are referred to them by the NCSL. This may include reviewing the decision-making process, including any Documentary Evidence recorded on the Department’s IT Systems.

Note: If a Participant was to fail to agree to their Job Plan when required to enter into a Detailed Job Plan, and this resulted in the decision by Services Australia to apply a payment suspension as a result of the Mutual Obligation Failure, the Participant would be able to request a formal review of their requirement to agree to the Job Plan under the mechanism outlined above.

Recording participation by close of business

Providers must schedule all Mutual Obligation Requirements in each Participant’s Electronic Calendar, except the Participant's requirement to:

• enter into a Job Plan

• undertake Job Search, or

• action a Job Referral.

Providers must confirm and/or record the Participant’s participation against each scheduled requirements in the Participant’s Electronic Calendar. Providers must do this by close of business on the day that the requirement is scheduled to occur in the Participant’s Electronic Calendar. Further details are included in Section 12.4 Compliance actions - Mutual Obligation Failures.

Note: Failure to record an outcome by close of business on the day as a Mandatory Activity or compulsory Job Interview could result in incorrect suspension of the Participant’s Income Support Payment.

(Deed Reference(s): Clause 112.4, 112.5, 112.6, 134, 136, and 155)

Providers must also act on instances of Work Refusal Failures and Unemployment Failures on the same Business Day that they become aware of the apparent failure. Further details are included in Section 12.5 Compliance actions - Work Refusal Failures and Section 12. actions - Unemployment Failures.

Note: Work Refusal Failures are currently suspended until otherwise advised.

Resolution time prior to Income Support Payment suspensions for Participants in the Green or Warning Zone

Resolution time applies when a Participant commits a Mutual Obligations Failure while in the Green Zone or Warning Zone. It allows the Participant a period of 5 Business Days to contact their Provider to discuss and resolve the Mutual Obligation Failure, if possible, before the Participant’s payment is affected.

During the 5 Business Days of resolution time, the Provider must be available to engage with Participants who make contact to discuss a Mutual Obligation Failure.

(Deed Reference(s): Clause 113.1)

A Participant’s Income Support Payment will not be affected if, within the period of resolution time:

• the Participant makes contact to report their participation

• the Provider records the Participant has a Valid Reason, or

• the Provider records the Participant does not have a Valid Reason, but the Participant has met a Re‑engagement Requirement that has been set.

Triggers for resolution time are outlined in the Providers Actions – Demerit and Payment Suspension Triggerssign-in required (sign-in required) supporting document available on the Provider Portal.

Manual Removal of Demerits

Providers must remove Demerits:

• if the Demerit was recorded in respect of a Mutual Obligation Failure by a Participant who was subsequently found to have had a Valid Reason for committing the Mutual Obligation Failure

• if the Demerit was recorded in error, or

• after a Participant enters into a Detailed Job Plan (see Section 4.4.1 Determining the appropriate Job Plan type for more information).

When removing the Demerit, the Provider must record the reason for the removal. A full list of these drop-down menu options can be found within the Manual Demerit Removalsign-in required (sign-in required) supporting document.

System step — Detailed instructions on removing a demerit for a Participant’s record are available in the Manually Removing Demerit task card.

12.4 Compliance actions - Mutual Obligation FailuresCopy citation · §12.4

This Section applies to Participants (Mutual Obligation).

12.4.1 Types of Mutual Obligation FailuresCopy citation · §12.4.1

A summary of the types of Mutual Obligations Failures is outlined in the table below.

Certain types of Mutual Obligation Failures are referred to as ‘misconduct’.

Misconduct refers to inappropriate behaviour by the Participant:

• during an Appointment they were notified about and needed to attend as part of their Mutual Obligation Requirements

• while taking part in a Mandatory Activity they were notified about and needed to undertake as part of their Mutual Obligation Requirements, or

• during a Job Interview that could, or did, result in an offer of Employment not being made.

Note: The description below may not be the same as the descriptions shown in the Department’s IT Systems when managing non-compliance.

Mutual Obligation Failures

Example of a table styled with the second of the two DSS table styles. It is populated with food-related dummy data.

Fast-track Mutual Obligation Failures

Mutual Obligation Failures are referred to as ‘fast-track’ Mutual Obligation Failures result in a Participant having a Capability Interview or Capability Assessment more quickly than would otherwise be the case.

A fast-track Mutual Obligation Failure occurs when a Participant (with a Detailed Job Plan):

• fails to attend or take part appropriately at a scheduled Job Interview, or

• fails to act on a Job Referral task when requested to do so by their Provider.

The Department’s IT Systems will automatically increase the number of Demerits to:

• 3 Demerits if the Participant has fewer than 3 Demerits when they commit a fast-track Mutual Obligation Failure, or

• 5 Demerits if the Participant has either 3 or 4 Demerits when they commit a fast-track Mutual Obligation Failure.

Missed requirements that do not result in a Mutual Obligation Failure

All Participants new to employment services will not have compliance action taken the first time they do not meet their Mutual Obligation Requirement.

The Department’s IT Systems will identify those new to employment services and, instead of applying the TCF, will send a notification via their preferred notification method reminding them:

• where to locate information about their requirements

• to contact their Provider if they are having difficulty understanding or meeting their requirements, or they require a referral to support services, and

• that on this occasion no action will be taken in relation to their Income Support Payment.

However, the notification excludes instances where the first failure was failing to:

• attend the Initial Interview

• act in an appropriate manner at the Initial Interview, such that the appointment cannot be completed, or

• agree to their Job Plan.

If these failure types are the first failure the Participant commits after entering employment services, the TCF is applied per usual processes. The next failure will then attract the warning notification.

Participants who report they are undertaking 30 hours paid work per fortnight will generally not have compliance action applied for non-attendance at a Provider Appointment. Providers must not schedule compellable Provider Appointments at times they know a Participant is undertaking paid work (see Section 5.3.4 Capturing Personal Events).

12.4.2 Identifying Mutual Obligation FailuresCopy citation · §12.4.2

Providers must meet their obligations under the Deed when they become aware that a Participant may have failed to meet a Mutual Obligation Requirement.

(Deed Reference(s): Clause 139)

The Department’s IT Systems will assist in identifying if:

• a Participant did not attend a Provider Appointment

• a Participant did not attend a Mandatory Activity or compulsory Job Interview, or if a participation result has not been recorded by a Participant with the requirement to self-report

• a Participant has not agreed to their Job Plan after the 2 Business Days ‘think time’ period (see Section 4.8 Review and Agreement of the Job Plan for more information), or

• a Participant has not reported the number of Job Search efforts required to meet their Job Search Requirement (see Section 5.7.2 Arrangements for Participants (Mutual Obligation) for more information).

Contact with the Participant

Before reporting non-compliance, the Provider must attempt to contact the Participant on the same Business Day that the Provider becomes aware that a Participant will not meet or has not meet a Mutual Obligation Requirement for a scheduled attendance-based requirement. Depending on whether the Provider is successful at contacting the Participant, they must record the appropriate result against the requirement in the Department’s IT Systems.

Note: If a Participant has failed to enter into a Job Plan or failed to meet their Job Search Requirement for a Job Search Reporting Period, the Department’s IT Systems will automatically notify the Participant of their non-compliance and request that they contact their Provider. The onus therefore is on the Participant contacting the Provider.

Where contact can be made with the Participant, the Provider must discuss the circumstances of the apparent failure and determine if the Participant had a Valid Reason for the non-compliance.

If, after discussing the circumstances of the Mutual Obligation Failure, the Provider cannot establish the Participant had a Valid Reason for the non-compliance, the Provider must immediately record this in the Department’s IT Systems in accordance with Section 12.4.3 Reporting Mutual Obligation Failures and determine if a Re-engagement Requirement should be set for the Participant in accordance with Section 12.4.6 Re-engagement Requirements.

If, after discussing the circumstances of the Mutual Obligation Failure, the Provider establishes the Participant had a Valid Reason for the non-compliance, a Mutual Obligation Failure has not occurred. Providers must record there was a Valid Reason as outlined in Section 12.4.4 Recording if a Participant had a Valid Reason.

Where contact cannot be made with the Participant, the Provider must record that they are not in contact with the Participant and undertake the steps needed to report the apparent Mutual Obligation Failure as outlined in Section 12.4.3 Reporting Mutual Obligation Failures.

If the Provider is later contacted by the Participant, the Provider must discuss with the Participant the circumstances of the failure and determine if they had a Valid Reason. If the Provider establishes the Participant had a Valid Reason for the non-compliance, the Provider must update the report recording non-compliance in the Department’s IT Systems, in accordance with Section 12.4.4 Recording if a Participant had a Valid Reason.

If a Participant contacts the Provider prior to the scheduled start time for a Mutual Obligation Requirement, the Provider must then assess if the Participant’s reason for being unable to comply with the Mutual Obligation Requirement is an Acceptable Reason.

If the Provider is satisfied that the Participant has an Acceptable Reason, the Provider must reschedule or remove the scheduled Mutual Obligation Requirement from the Electronic Calendar.

If the Provider is not satisfied that the Participant had an Acceptable Reason, the Provider must:

• inform the Participant that they are still expected to meet the requirement, and

• remind the Participant of the consequences of not meeting the requirement.

System step — Rescheduling means that the Provider moves the relevant Engagement to another day and/or time in the Electronic Calendar. Providers must formally notify the Participant of the details of their new date and/or time of the Engagement and the consequences of not meeting the relevant Mutual Obligation Requirement. The Provider does this by undertaking the following steps in the Department’s IT Systems:

• Step 1: Select ‘Rescheduled’ against the Mutual Obligation Requirement.

• Step 2: Select the description from the drop-down menu that most closely aligns with the Participant’s Acceptable Reason.

• Step 3: Follow the workflow to generate the notification.

System step — Removing means that the Provider records in the Department’s IT Systems that the relevant Engagement is ‘No Longer Required’. Providers must notify the Participant as soon as this is done, to ensure there is no confusion. The Provider does this by undertaking the following steps in the Department’s IT Systems:

• Step 1: Select ‘No Longer Required’ against the Mutual Obligation Requirement

• Step 2: Select the description from the drop-down menu that most closely aligns with the Participant’s Acceptable Reason.

• Step 3: Follow the workflow to generate the notification.

Determining if the Participant has a Valid Reason

When the Provider discusses the reasons that the Participant gives for failing to meet a requirement, the Provider must assess if the Participant has a Valid Reason.

A Participant has a Valid Reason if the Provider is satisfied that:

• it was not reasonable for the Participant to give prior notice of their inability to comply, and

• the reason provided for missing their requirement:

  • would directly have prevented the Participant from meeting the Mutual Obligation Requirement at the relevant time that the Mutual Obligation Failure occurred,

  • would be considered reasonable by a member of the public, and

  • aligns with their personal circumstances as known by the Provider.

Providers notified of family and domestic violence as the reason for a Participant not meeting their Mutual Obligation Requirements must consider this in their assessment of whether the Participant had a Valid Reason. Providers should also advise the Participant that they can contact Services Australia for an Exemption.

See the Valid Reason Assessmentsign-in required (sign-in required) supporting document for more information on Valid Reasons.

The exception to the above relates to drug and alcohol dependency or misuse. There are limits on the circumstances in which a Provider can determine that a Participant’s drug or alcohol misuse or dependency is an Acceptable Reason or Valid Reason for a Mutual Obligation Failure as outlined separately within this Section.

Acceptable Reasons when giving prior notice

If a Participant contacts their Provider prior to the scheduled start time for a Mutual Obligation Requirement, the Provider must assess if the Participant has an Acceptable Reason for being unable to meet the Mutual Obligation Requirement.

The Participant has an Acceptable Reason if:

• the Participant notified the Provider, before the scheduled start time for a Mutual Obligation Requirement, that the Participant is unable to meet the Mutual Obligation Requirement, and

• the Provider is satisfied that the Participant has a Valid Reason for being unable to meet the Mutual Obligation Requirement.

Note: A person notifying the Provider that they will be working at the time of a requirement is considered an Acceptable Reason. A confirmed Personal Event in the Participant’s Electronic Calendar is also considered acceptable.

The exception to the above relates to drug and alcohol dependency or misuse. There are limits on the circumstances in which a Provider can determine that a Participant’s drug or alcohol misuse or dependency is an Acceptable Reason or Valid Reason for a Mutual Obligation Failure as outlined separately within this Section.

See the Valid Reason Assessmentsign-in required (sign-in required) supporting document for guidance on what reasons can be accepted or not accepted.

Misconduct — Acting in an inappropriate manner

A Provider must determine that a Participant’s behaviour involved ‘misconduct’ when the Participant’s behaviour during the requirement:

• was within the Participant’s control

• prevented the purpose of the relevant Appointment, Activity or Job Interview from being met, and

• would be considered as inappropriate in the circumstances by the public.

This behaviour may include:

• dressing inappropriately for the requirement

• using offensive language

• showing an obvious lack of interest to the extent that it limits or prevents participation

• exaggerating the severity of an injury or illness to avoid fully taking part in the requirement, or

• leaving the requirement before its completion.

Behaviour that appears to be inappropriate but is out of the Participant’s control is not misconduct. For example, a Participant may act in an inappropriate manner because they:

• do not have appropriate clothes to wear

• are affected by a personal crisis, or

• are affected by a medical condition.

Additional considerations for Participants who disclose drug or alcohol dependence

There are additional considerations for Participants who disclose that drug or alcohol use or dependency is impacting their ability to meet their requirements and secure paid work.

The first time a Participant cites drug or alcohol misuse or dependency as the reason they are not able to meet an upcoming Mutual Obligation Requirement or have committed a Mutual Obligation Failure, the Provider may determine this is an Acceptable Reason or a Valid Reason, respectively.

Drug or alcohol misuse or dependency, however, should not be used as a repeated excuse for not meeting requirements. Instead, the expectation is that Providers will assist the Participant to access treatment services to overcome their dependency, where available and as appropriate.

Following the disclosure, the Participant must be offered appropriate treatment to address this barrier and their response (i.e. the Participant accepts or refuses services this support must be recorded in the Capability Management Tool). Refer to Section 7.7.5 Interventions and other non-vocational supports for more information on referrals to drug and alcohol treatment or rehabilitation programs.

If a Participant states that drug or alcohol misuse or dependency was the reason they have committed a Mutual Obligation Failure, the Provider cannot determine that this is an Acceptable Reason or Valid Reason, as relevant, if:

• the Provider previously determined that the Participant’s drug or alcohol misuse or dependency was an Acceptable Reason or Valid Reason, so the relevant upcoming Mutual Obligation Failure was rescheduled or the relevant Mutual Obligation Failure did not result in a Demerit

• the Provider referred the Participant to available and appropriate treatment to address the drug or alcohol misuse or dependency, and

• the Participant refused or did not take part in the treatment.

The above rules do not apply when:

• the treatment that the Participant was referred to was not available or appropriate for the Participant

• the Participant was genuinely unable to take part in the treatment

• the Participant agreed to take part in the treatment but, despite taking all reasonable steps to start the treatment, the treatment did not commence, or

• before the Participant was referred to the treatment, the Participant had:

  • completed the same type of treatment as the treatment they were referred to, or

  • completed treatment that was substantially like the treatment they were referred to and, in the opinion of an appropriately qualified medical professional, the Participant would not be helped by further treatment of the same kind as the type of treatment already completed by the person.

12.4.3 Reporting Mutual Obligation FailuresCopy citation · §12.4.3

The way the Provider reports Mutual Obligation Failures differs depending on the type of Mutual Obligation Failure the Participant has committed, as outlined below.

Reporting that they are not in contact with the Participant will create a pending Demerit on the Participant’s record and may trigger a payment suspension if the Participant does not make contact or does not meet a Re-engagement Requirement.

By recording the Participant’s reason is not a Valid Reason, the Provider is confirming the relevant Mutual Obligation Failure on the Participant’s record.

On the day the Provider determines a Participant did not have a Valid Reason, the Provider must inform the Participant:

• what and when the Participant’s Re-engagement Requirement will be, if relevant

• why their given reason was not a Valid Reason (including the consequences of having no Valid Reason for non-compliance)

• how this determination will be displayed on the ‘Participant’s Compliance Status Indicator’ on their Workforce Australia homepage, including the number of Demerits the Participant has accrued

• if the Mutual Obligation Failure is a ‘fast-track’ Mutual Obligation Failure and, if so, what that means and what the next steps are

• the importance of meeting all Mutual Obligation Requirements, and

• their Income Support Payment may be suspended in 5 Business Days unless the Participant is able to meet a Re-engagement Requirement before those 5 Business Days lapse.

See the Provider Actions – Demerit and payment suspension triggerssign-in required (sign-in required) supporting document on the Provider Portal for information on what happens when a Provider records a Participant has failed to meet a requirement.

Failure to enter into a Job Plan

If a Participant outright refuses to agree to their Job Plan and refuses think time, the Provider must record this in the Department’s IT Systems by close of Business Day.

System step — Detailed instructions on reporting outright refusal to agree to a Job Plan are available in the When a Participant Refuses to Agree to Their Job Plan task card.

The Department’s IT Systems will automatically create a non-compliance report if the Participant has not agreed to their Job Plan within the 2 business days think time.

On the day the Provider becomes aware the Participant did not have a Valid Reason for not agreeing to their Job Plan by the due date, the Provider must record this in the Department’s IT Systems by close of Business Day.

System step — To report that a Participant did not have a Valid Reason, the Provider must undertake the following steps in the Department’s IT Systems:

• Step 1: Go to the Outstanding Non-Compliance screen.

• Step 2: Select ‘no’ to indicate that the Participant’s reason for not entering into a Job Plan has not been accepted.

• Step 3: Record the reason the Participant gave from the ‘Reasons not accepted’ drop-down menu — a full list of the drop-down menu options can be found within the Valid Reason Assessmentsign-in required (sign-in required) supporting document.

• Step 4: Select ‘submit’, which will close the report.

If the Participant did not have a Valid Reason, the Provider does not need to renegotiate a Job Plan with the Participant.

Attendance-based requirements

Providers must record non-attendance at a compulsory Provider Appointment by close of business on the day the requirement was scheduled.

On the day the Provider becomes aware the Participant has an apparent Mutual Obligation Failure because of non-attendance at a Mandatory Activity or compulsory Job Interview, as required in their Detailed Job Plan and scheduled in their Electronic Calendar, the Provider must report the failure by close of business.

If a Provider’s attempts to contact the Participant are not successful, the Provider must record they are not in contact with the Participant and select ‘Did Not Attend—Invalid’ in relation to the relevant Mutual Obligation Requirement in the Participant’s Electronic Calendar. A pending Demerit will be created on the Participant’s record.

If the Provider needs to update the record to record that the Participant did not have a Valid Reason, the Provider should select the relevant Appointment, Activity or Job Interview and the system will prompt Providers to record the reason the Participant provided. Once the Provider records in the Department’s IT Systems that the Participant does not have a Valid Reason, the Demerit will be confirmed.

On the day the Provider becomes aware the Participant did not have a Valid Reason, the Provider must record this in the Department’s IT Systems by close of Business Day. By recording the Participant’s reason is not a Valid Reason, the Provider is confirming the relevant Demerit on the Participant’s record.

System step — To report that a Participant missed a requirement, the Provider must undertake the following steps in the Department’s IT Systems:

• Step 1: Select the relevant Appointment, Activity or Job Interview in the Participant’s Electronic Calendar.

• Step 2: Answer ‘yes’ to the question of if they are in contact with the Participant.

• Step 3: Select ‘Did Not Attend—Invalid’.

• Step 4: Select ‘no’ in response to the question of whether they accept the Participant’s reason.

• Step 5: Record the reason the Participant gave from the ‘Reasons not accepted’ drop-down menu — a full list of the drop-down menu options can be found within the Valid Reason Assessmentsign-in required (sign-in required) supporting document.

• Step 6: Select ‘submit’, which will close the report.

A Participant does not accrue a Demerit for not recording their participation against a Mutual Obligation Requirement. They do, however, accrue a Demerit if the Provider determines they did not have a Valid Reason for their failure to attend or take part in the Mutual Obligation Requirement, including when they did not give prior notice to their Provider of their inability to meet the requirement when it was reasonable to expect them to do so.

See the Provider Actions – Demerits and payment suspensions triggerssign-in required (sign-in required) supporting document on the Provider Portal for information on the circumstances in which a Demerit (pending confirmation) will be confirmed or removed from the Participant’s record.

Misconduct

On the day the Provider becomes aware the Participant has an apparent Mutual Obligation Failure because of misconduct at a compulsory Appointment, Activity or Job Interview, as required in their Detailed Job Plan and scheduled in their Electronic Calendar, the Provider must report the failure by close of business.

System step — To report a Participant’s misconduct during a requirement, the Provider must undertake the following steps in the Department’s IT Systems:

• Step 1: Select the relevant Appointment, Activity or Job Interview in the Participant’s Electronic Calendar.

• Step 2: Select ‘Misconduct’.

• Step 3: Follow any other prompts within the system and then submit, which will close the report.

Failures to meet a Job Search Requirement

The Department’s IT Systems will automatically create a non-compliance report if the Participant does not record a sufficient number of Job Searches to meet their Job Search Requirement, as required in their Detailed Job Plan.

If a Participant fails to meet their Job Search Requirement as the assessment of their Job Searches found they were not of satisfactory quality, and the Provider’s attempts to contact the Participant are not successful, the Provider must record they are not in contact with the Participant and enter an assessment result of ‘Unsatisfactory–Invalid’.

On the day the Provider becomes aware the Participant did not have a Valid Reason, the Provider must record this in the Department’s IT Systems by close of Business Day.

System step — To report that a Participant did not have a Valid Reason, the Provider must undertake the following steps in the Department’s IT Systems:

• Step 1: Go to the Outstanding Non-Compliance screen.

• Step 2: Select ‘no’ to indicate that the Participant’s reason for not entering into a Job Plan has not been accepted.

• Step 3: Record the reason the Participant gave from the ‘Reasons not accepted’ drop-down menu— a full list of the drop-down menu options can be found within the Valid Reason Assessmentsign-in required (sign-in required) supporting document.

• Step 4: Select ‘submit’, which will close the report.

Failures to act on a Job Referral

Providers have 5 Business Days to record a result for a Job Referral task.

On the day the Provider becomes aware the Participant has failed to act on a job opportunity, when notified to do so by the Provider and required to do so in their Detailed Job Plan, the Provider must record this in the Department’s IT Systems by close of business day.

If a Provider’s attempts to contact the Participant are not successful, the Provider must record they are not in contact with the Participant and enter an assessment result of ‘Unsatisfactory’.

On the day the Provider becomes aware the Participant did not have a Valid Reason, the Provider must record this in the Department’s IT Systems by close of Business Day.

System step — To report that a Participant failed to meet this requirement and did not have a Valid Reason, the Provider must undertake the following steps in the Department’s IT Systems:

• Step 1: Go to the Outstanding Non-Compliance screen.

• Step 2: Select ‘no’ to indicate that the Participant’s reason for failing to act on a Job Referral has not been accepted.

• Step 3: Record the reason the Participant gave from the ‘Reasons not accepted’ drop-down menu— a full list of the drop-down menu options can be found within the Valid Reason Assessmentsign-in required (sign-in required) supporting document.

• Step 4: Select ‘submit’, which will close the report.

12.4.4 Recording that a Participant had a Valid ReasonCopy citation · §12.4.4

On the day the Provider determines a Participant has a Valid Reason for a Mutual Obligation Failure, the Provider must record this in the Department’s IT Systems.

The way the Provider records this differs depending on the type of Mutual Obligation Failure the Participant has committed, as outlined below.

By recording that the Participant had a Valid Reason, the Provider is:

• finalising the Mutual Obligation Failure to prevent the Participant’s Income Support Payment being affected

• lifting the Participant’s Income Support Payment suspension, if the Participant’s payment is suspended

• removing any Re-engagement Requirement associated with the Mutual Obligation Failure, and

• removing any relevant pending Demerit from the Participant’s record.

See the Provider Actions – Demerit and payment suspension triggerssign-in required (sign-in required) supporting document on the Provider Portal for information on what happens when a Provider records a Participant had a Valid Reason.

Failure to enter into a Job Plan

On the day the Provider becomes aware the Participant had a Valid Reason for a Mutual Obligation Failure due to the Participant not entering into a Job Plan the Provider must record this in the Department’s IT Systems by close of Business Day.

System step — To report that a Participant did not meet this requirement but had a Valid Reason, the Provider must undertake the following steps in the Department’s IT Systems:

• Step 1: Go to the Outstanding Non-Compliance screen.

• Step 2: Select ‘yes’ to indicate the Participant’s reason for not entering into a Job Plan has been accepted.

• Step 3: Record the reason the Participant gave from the ‘Reasons accepted’ drop-down menu— a full list of the drop-down menu options can be found within the Valid Reason Assessmentsign-in required (sign-in required) supporting document.

• Step 4: Select ‘submit’, which will close the report.

Once the Provider has recorded that the Participant has a Valid Reason, the Provider must then create a Contact Appointment for the Participant to attend within 2 Business Days to renegotiate a Job Plan.

If the Participant attends the Appointment, the Provider must discuss the Job Plan with the Participant and seek their approval of their Job Plan, granting think time if required.

If the Participant does not attend the Appointment to discuss the Job Plan, this is a Mutual Obligation Failure if the Appointment was compulsory.

Information on the processes to create, update and withdraw a Job Plan is included in Chapter 4: Job Plans.

Attendance-based requirements

On the day the Provider becomes aware the Participant had a Valid Reason for failing to attend a compulsory Appointment, Activity or Job Interview scheduled in their Electronic Calendar, the Provider must record this in the Department’s IT Systems by close of Business Day.

If the Provider’s earlier attempts to contact the Participant were not successful (i.e. the Provider has already recorded ‘Did Not Attend—Invalid’ in relation to the relevant Mutual Obligation Requirement in the Participant’s Electronic Calendar), the Provider will need to update the record for the relevant Appointment, Activity or Job Interview.

System step — To report that a Participant had a Valid Reason for an attendance-based requirement, the Provider must undertake the following steps in the Department’s IT Systems:

• Step 1: Select the relevant Appointment, Activity or Job Interview in the Participant’s Electronic Calendar.

• Step 2: Answer ‘yes’ to the question of if they are in contact with the Participant.

• Step 3: Select:

• ‘Did Not Attend—Valid’, if an attendance result has not already been recorded, or

• ‘yes’ in response to the question of if they accept the Participant’s reason, if the Provider has already recorded ‘Did Not Attend—Invalid’ or ‘Misconduct’ in relation to the relevant Mutual Obligation Requirement.

  • Step 4: Record the reason the Participant gave from the ‘Reasons accepted’ drop-down menu— a full list of the drop-down menu options can be found within the Valid Reason Assessmentsign-in required (sign-in required) supporting document.

  • Step 5: Select ‘submit’, which will close the report.

Failures to meet a Job Search Requirement

On the day the Provider becomes aware the Participant had a Valid Reason for not meeting their Job Search Requirement (either quantity or quality), the Provider must record this in the Department’s IT Systems by close of Business Day.

System step — To report that a Participant did not have a Valid Reason, the Provider must undertake the following steps in the Department’s IT Systems:

• Step 1: Go to the Outstanding Non-Compliance screen.

• Step 2: Select ‘yes’ to indicate that the Participant’s reason for not entering into a Job Plan has not been accepted.

• Step 3: Record the reason the Participant gave from the ‘Reasons accepted’ drop-down menu— a full list of the drop-down menu options can be found within the Valid Reason Assessmentsign-in required (sign-in required) supporting document.

• Step 4: Select ‘submit’, which will close the report.

Failures to act on a Job Referral

On the day the Provider becomes aware the Participant had a Valid Reason for not acting on a Job Referral task when requested to do so by the Provider, the Provider must record this in the Department’s IT Systems by close of business on the day it becomes aware of the failure.

System step — To report that a Participant did not meet this requirement but had a Valid Reason, the Provider must undertake the following steps in the Department’s IT Systems:

• Step 1: Go to the Outstanding Non-Compliance screen.

• Step 2: Select ‘Unsatisfactory—Valid’ to indicate the Participant’s reason for not acting on a Job Referral or Job Opportunity has been accepted.

• Step 3: Select the reason from the ‘Reasons accepted’ column of the drop-down menu that most closely aligns with the reason that the Participant gave as to why they did not attend their requirement. A full list of these drop-down menu options can be found within the Valid Reason Assessmentsign-in required (sign-in required) supporting document.

• Step 4: Select ‘submit’, which will close the report.

12.4.5 Notifications to Participants of Mutual Obligation FailuresCopy citation · §12.4.5

When the Provider records in the Department’s IT Systems that a Participant has committed a Mutual Obligation Failure, the Department’s IT Systems creates a notification on the Provider’s behalf.

The notification:

• is automatically sent to the Participant, if the Participant has SMS or email details recorded in the Department’s IT Systems for automatic notification, or

• must be sent by the Provider to the Participant’s postal address on the same day the Provider records in the Department’s IT Systems that the Participant has committed a Mutual Obligation Failure, if the Participant does not have SMS or email details recorded in the Department’s IT Systems for automatic notification.

System step — Detailed instructions on issuing notifications are available in the Printing Compliance Notifications task card.

If the Participant was in the Green Zone or Warning Zone when the Mutual Obligation Failure occurred, the notification advises the Participant:

• they have failed to meet a Mutual Obligation Requirement

• to contact their Provider as soon as possible, and

• their Income Support Payment may be suspended after 5 Business Days have passed if they take no further action.

A further notification will be created if the Participant’s Income Support Payment is suspended after the 5 Business Days resolution time, advising the Participant:

• that their Income Support Payment is suspended

• why their Income Support Payment is suspended

• what they must do for the Income Support Payment suspension to be lifted, and

• to contact their Provider as soon as possible.

A Participant’s Income Support Payment will normally remain suspended until they meet a Reengagement Requirement or until the Provider records a Valid Reason in the Department’s IT Systems.

12.4.6 Re-engagement RequirementsCopy citation · §12.4.6

Re-engagement Requirements are set following Mutual Obligation Failures.

A Re-engagement Requirement is what a Participant must do:

• during resolution time, to prevent their Income Support Payment from being suspended, or

• if the Participant’s Income Support Payment has been suspended, to have their Income Support Payment suspension lifted.

Re-engagement Requirements are set automatically by the Department’s IT Systems, when the Participant has failed to:

• complete the number of Job Searches required in their Detailed Job Plan, or

• enter into a Job Plan.

For all other failures, where the Participant does not have a Valid Reason, the Provider will need to set the Re-engagement Requirement.

Once set, a Re-engagement Requirement is a Mutual Obligation Requirement. This means that, among other things, the Provider must comply with the Deed:

• when recording Re-engagement Requirements in a Participant’s Electronic Calendar, and

• in relation to rescheduling or removing a Re-engagement Requirement from a Participant’s Electronic Calendar.

(Deed Reference(s): Clause 134, 138)

After a Re-engagement Requirement is set, it may be appropriate in some cases to remove the need for the requirement — that is, the Re-engagement Requirement is no longer required. Recording ‘Compliance Action No Longer Appropriate’ will remove the need for the requirement and end resolution time or lift the payment suspension (as relevant).

When a Participant commits multiple Mutual Obligation Failures before contact with their Provider to discuss those Mutual Obligation Failures:

• only one Re-engagement Requirement can be set, and

• the Provider must tell the Participant they only have to meet one Re-engagement Requirement.

See the Provider Actions – Demerits and payment suspensions triggerssign-in required (sign-in required) supporting document on the Provider Portal for information on the circumstances in which a Participant’s payment suspension is lifted or can be avoided.

Scheduling a Re-engagement Requirement

When setting a Re-engagement Requirement, the Provider must follow the prompts in the Department’s IT Systems and notify the Participant of the Re-engagement Requirement.

The Department’s IT Systems will specify the type of Re-engagement Requirement which the Provider must set for the purposes of complying with their obligations under the Deed.

Any attendance-based Re-engagement Requirement must be scheduled to occur within 2 Business Days following the day the Provider discussed the failure with the participant — refer to the Finalising Re-engagement Requirementssign-in required (sign-in required) supporting document for more information.

System step — Providers must have the available sessions in the Electronic Calendar — Re-engagement Appointments or All Appointment Types can be used to schedule an Appointment for Re-engagement.

(Deed Reference(s): Clause 112.1)

Exceptions to this 2 Business Day requirement are:

• the Participant has an Acceptable Reason for not being able to meet the Re-engagement Requirement within the 2 Business Day timeframe, or

• the Provider is not able to arrange or deliver the Re-engagement Requirement within the 2 Business Day timeframe.

Exception 1: Acceptable Reason to not meet Re-engagement Requirement within 2 Business Days

When the Provider is in contact with a Participant to discuss an apparent Mutual Obligation Failure(s), as outlined in Section 12.4.2 Identifying Mutual Obligation Failures, and determines that the Participant has committed a Mutual Obligation Failure, the Provider must consider if the Participant has an Acceptable Reason for being unable to meet their Re-engagement Requirement within 2 Business Days following that contact.

System step — If the Provider considers that the Participant has a Valid Reason for being unable to meet their Re-engagement Requirement within 2 Business Days, the Provider must undertake the following steps in the Department’s IT Systems:

• Step 1: Go to the Outstanding Non-Compliance screen.

• Step 2: Select ‘Unable to Re-engage Within 2 Business Days’ — this will prevent or lift suspension of the Participant’s Income Support Payment suspension and remove the need for a Re-engagement Requirement.

• Step 3: Record the Acceptable Reason from the drop-down menu — a full list of the drop-down menu options can be found within the Finalising Re-engagement Requirementssign-in required (sign-in required) supporting document.

Exception 2: Provider not able to arrange or deliver the Re-engagement Requirement within 2 Business Days

In limited circumstances, a Provider may not be able to arrange or deliver the Re-engagement Requirement within 2 Business Days after the contact between the Participant and the Provider.

System step — If the Provider cannot arrange or deliver the Re-engagement Requirement within 2 Business Days, the Provider must undertake the following steps in the Department’s IT Systems:

• Step 1: Select ‘Re‑engagement Not Required’ on the Outstanding Non-Compliance screen — this will prevent or lift suspension of the Participant’s Income Support Payment suspension and remove the need for a Re-engagement Requirement.

• Step 2: Record the reason as to why the requirement could not be arranged or delivered from the drop-down menu — a full list of the drop-down menu options can be found within the Finalising Re-engagement Requirementssign-in required (sign-in required) supporting document.

Re-engagement Requirement is no longer appropriate or required

Once a Participant’s Re-engagement Requirement has been set, unexpected circumstances may make it inappropriate to expect the Participant to meet the requirement, have their payment suspended and/or have their payment suspension continue.

System step — If it is no longer appropriate to undertake compliance action, the Provider must undertake the following steps in the Department’s IT Systems:

• Step 1: Select ‘Compliance action no longer appropriate’ on the Outstanding Non-Compliance screen — this will prevent or lift suspension of the Participant’s Income Support

• Step 2: Select from reason the requirement is no longer appropriate from the drop-down menu — a full list of these drop-down menu options can be found in the Finalising Re-engagement Requirementssign-in required (sign-in required) supporting document.

Where the Provider finalises attendance-based non-compliance prior to the end of resolution time and is satisfied that a Re-engagement Requirement is not necessary, the Provider can end the need for the Participant to have a Re-engagement Requirement.

System step — If the Re-engagement Requirement is no longer required, the Provider must record ‘Re‑engagement Not Required – non-compliance discussed’ in the Department’s IT Systems (see the Finalising Re-engagement Requirementssign-in required (sign-in required) supporting document).

Note: Re-engagement Requirements are always required following Mutual Obligation Failures for:

• Initial Interviews, and

• Job Plans.

Failure to meet a Re-engagement Requirement

If the Provider becomes aware that a Participant has failed to meet a Re-engagement Requirement, the Provider must try to contact the Participant on the same Business Day.

If the Provider is able to contact the Participant, the Provider must discuss the Participant’s reasons for not meeting the Re-engagement Requirement and assess if they had a Valid Reason for being unable to meet their Re-engagement Requirement.

System step — If the Participant had a Valid Reason, the Provider must select ‘Did Not Attend–Valid’ in relation to the Re-engagement Requirement in the Participant’s Electronic Calendar.

In the case where a Participant has a Valid Reason for being unable to meet their Re‑engagement Requirement, recording the result ‘Did Not Attend–Valid’ will lift any suspension of the Participant’s Income Support Payment. However, the Provider must set a new Mutual Obligation Requirement for the Participant:

To occur within 2 Business Days after the day on which the Provider determines that the Participant has a Valid Reason for not meeting the Re-engagement Requirement.

That is the same type as the Mutual Obligation Requirement the Participant failed to meet originally.

System step — If the Participant did not have a Valid Reason, the Provider must select ‘Did Not Attend—Invalid’ in relation to the Re-engagement Requirement in the Participant’s Electronic Calendar.

In the case where a Participant did not have a Valid Reason:

• if the Participant’s Income Support Payment is not yet suspended, it will be suspended if the Participant does not meet another Re-engagement Requirement before the original 5 Business Days resolution time expires, or

• if the Participant’s Income Support Payment is suspended, the payment will remain suspended, and the Provider must book a new Re-engagement Requirement.

If the Provider cannot contact the Participant, the Provider must record that they are not in contact with the Participant and report that the Participant has failed to meet the requirement.

System step — The Provider must select ‘Did Not Attend—Invalid’ in relation to the Re-engagement Requirement in the Participant’s Electronic Calendar.

In this case:

• if the Participant’s Income Support Payment is not yet suspended, it will be suspended when the 5 Business Days resolution time following the original failure expires, or

• if the Participant’s Income Support Payment is suspended, the payment will remain suspended until the Re-engagement Requirement is met.

12.4.7 Capability InterviewsCopy citation · §12.4.7

A Capability Interview is the Re-engagement Requirement when a Participant has 3 confirmed Demerits or a Demerit for a fast-track failure.

The purpose of the Capability Interview is to determine if:

• the requirements in the Participant’s Job Plan are appropriate for their circumstances, and

• the Participant can meet the requirements.

Mutual Obligation Requirements are suitable if:

• they are appropriate to the Participant’s circumstances, and

• the Participant can meet them.

The Department’s IT Systems will determine the outcome of the Capability Interview based on the information that the Provider records in the Department’s IT Systems in relation to the Capability Interview.

If the outcome of the Capability Interview is that the Participant was not capable of meeting their requirements, the Participant will return to the Green Zone with their Demerits reset to zero. The Provider must review the Participant’s requirements and adjust the Participant’s Job Plan so that it includes only suitable requirements.

If the outcome of the Capability Interview is that the Participant was capable of meeting their requirements, the Participant will continue in the Warning Zone with their Demerit count unchanged.

Providers must still create Work Refusal Failure reports, regardless of whether the Participant has an outstanding Capability Interview in the Department’s IT Systems.

Note: Work Refusal Failures are currently suspended until otherwise advised. Providers do not need to create Work Refusal Failure reports until this suspension ends.

When a Capability Interview is triggered

The Department’s IT Systems will identify that a Participant’s Re-engagement Requirement is a Capability Interview when:

• they have reached 3 Demerits (including through a ‘fast-track’ failure), and

• they have not had a Capability Interview in the last 60 days that found their requirements suitable.

In these circumstances, a Capability Interview is said to be ‘triggered’, and the Department’s IT Systems will list the Capability Interview as ‘outstanding’.

The Department’s IT Systems will identify that a Capability Interview is ‘outstanding’ until it is finalised.

While the Capability Interview is outstanding, the Participant cannot accrue further Demerits and the Participant’s Job Plan cannot be updated.

System step — The Capability Interview will be finalised when the Provider selects ‘submit’ in the Department’s IT Systems after completing the pre-interview check and recording all the relevant information during the Capability Interview. Detailed instructions are available in the Conduct Capability Interview task card.

Scheduling a Capability Interview

The Provider must schedule the Capability Interview to occur within 2 Business Days after the Participant accrues the relevant Demerit.

Exceptions to delivery of the Capability Interview within 2 Business Days are:

• the Participant has an Acceptable Reason for not being able to attend the Capability Interview within the 2 Business Day timeframe,

• when operating hours of Part-Time or Outreach Sites prevents delivery of the Capability Interview within 2 Business Day timeframe

• when the Participant is transferred to another Provider, or

• the Participant is returning to service after an Exemption.

Providers must conduct Capability Interviews face-to-face except in allowable circumstances, which are limited to circumstances that:

• are beyond the Participant or Provider’s control, and

• prevent the Capability Interview from being delivered face-to-face.

Allowable circumstances include where any one or more of the following applies to the Participant:

• they live in an area that is affected by:

  • extreme weather conditions

  • a natural disaster

  • public transport strikes, and/or

  • a written Direction as Notified by the Department, addressing expectations in relation to Provider servicing arrangements and Participants’ Mutual Obligation Requirements,

• they are participating in full-time Education or Training, and this participation restricts their availability to attend the Capability Interview face-to-face

• they are Employed and their hours restrict their availability to attend the Capability Interview face-to-face, and/or

• they are not medically fit to attend the Capability Interview face-to-face.

If allowable circumstances prevent the Capability Interview from being delivered face-to-face, the Provider may conduct the Capability Interview via a phone call or videoconference so that it is delivered within the standard 2 Business Days timeframe.

System step — When scheduling the Capability Interview to be delivered via a phone call or videoconference, the Provider must record the ‘allowable circumstance’ in the Department’s IT Systems.

Providers must ensure the scheduled Capability Interview appointment time is of sufficient length to allow for a thorough review of the Participant’s personal circumstances and have a detailed discussion. The recommended time for a Capability Interview is between 45 and 60 minutes.

As with all other compulsory Appointments, Providers must ensure efforts are made to avoid clashes with any Personal Events in a Participant’s Electronic Calendar.

When scheduling the Capability Interview, the Provider must ensure that they explain to the Participant:

• the purpose of the Capability Interview

• the reason they must participate in a Capability Interview (either because they accrued 3 Demerits or because they committed a fast-track Mutual Obligation Failure), and

• the potential consequences of continued Mutual Obligation Failures.

(Deed Reference(s): Clause 139.8, 139.9, 139.10)

Circumstance 1: Participant has an Acceptable Reason

If a Participant notifies the Provider that they are unable to attend a scheduled Capability Interview, the Provider must assess if the Participant’s reason for not being able to attend with 2 Business Days is an Acceptable Reason.

The Provider must determine that a Participant has an Acceptable Reason for being unable to attend the Capability Interview within the standard 2 Business Days timeframe if:

• the Participant notified the Provider, before the end of the standard 2 Business Days timeframe, that the Participant is unable to attend the Capability Interview, and

• the Provider is satisfied that the Participant has a Valid Reason for being unable to attend the Capability Interview within the standard 2 Business Days timeframe.

If the Provider determines a Participant has an Acceptable Reason, the Provider must schedule the Capability Interview to occur within 12 Business Days after the standard 2 Business Days timeframe (14 Business Days after the Participant accrues the Demerit that triggers the Capability Interview).

System step — If there is an Acceptable Reason, the Provider must undertake the following steps in the Department’s IT Systems:

• Step 1: Select ‘unable to re-engage within 2 Business Days’ — this will lift the Participant’s Income Support Payment suspension, but the requirement to attend the Capability Interview will still be outstanding on the Participant’s record

• Step 2: Select from the drop-down menu a description of the relevant Valid Reason that is most like the reason as described by the Participant to the Provider — a full list of the reasons that appear in the drop-down menu can be found in the Finalising Re-engagement Requirementssign-in required (sign-in required) supporting document, and

• Step 3: Schedule the Capability Interview within the 14 Business Day timeframe.

Circumstance 2: Participant does not have an Acceptable Reason

If the Provider assesses that the Participant’s reason is not an Acceptable Reason as discussed above, the Provider must:

• schedule the Capability Interview within the standard 2 Business Days timeframe

• tell the Participant why their reason is not an Acceptable Reason

• inform the Participant that they are still expected to attend the Capability Interview, and

• remind the Participant that, if their Income Support Payment is currently suspended, that their payment suspension will not be lifted until they attend the Capability Interview.

Circumstance 3: When Part-Time or Outreach Site operations prevent delivery of the Capability Interview within 2 Business Days

If Part-Time or Outreach Site hours of operations prevent the Provider from delivering the Capability Interview face-to-face within the standard 2 Business Days timeframe, but the Provider has determined the Capability Interview must be conducted face-to-face (e.g. because it is unsuitable to deliver the Capability Interview via a phone call or videoconference or no allowable circumstance exists), the Provider must schedule the Capability Interview to occur as soon as possible after the standard 2 Business Days timeframe.

In any event, the Provider must schedule the Capability Interview to occur within 12 Business Days after the standard 2 Business Days timeframe. Broadly speaking, this means that the Provider must schedule the Capability Interview within 14 Business Days after the Participant accrues the Demerit that triggers the Capability Interview.

System step — In these cases, the Provider must undertake the following steps in the Department’s IT Systems:

• Step 1: Select ‘Re-engagement not required’ — this will lift the Participant’s Income Support Payment suspension, but the requirement to attend the Capability Interview will still be outstanding on the Participant’s record

• Step 2: Record the reason why ‘Re-engagement not required’ — the only drop-down menu option is ‘Part-time/outreach services’, and

• Step 3: Manually schedule the Capability Interview in the Participant’s Electronic Calendar.

Circumstance 4: When the Participant is transferred to another Provider, or the Participant is returning to service after an Exemption

A Provider does not need to conduct the Capability Interview within the standard 2 Business Days timeframe where, after the Capability Interview is triggered, but before it is finalised, the Participant:

• transfers from their current Provider to another Provider or Other Service, or

• is granted an Exemption.

In these cases, the Capability Interview must still be undertaken by:

• the new Provider, at the Initial Interview when the Participant transfers to the new Provider, or

• the current Provider, within 14 Business Days of the Participant returning after an Exemption.

Capability Interviews is no longer required but still outstanding

The Department’s IT Systems will identify that an ‘outstanding’ Capability Interview is ‘No Longer Required’ when, after the Capability Interview is triggered, but before it is finalised, the Participant:

• transfers from the Provider to another Provider, or

• is granted an Exemption.

The process for resolving the outstanding Capability Interview is outlined in the previous section on scheduling a Capability Interview (see Circumstance 4 above).

If a Participant fails to attend their Capability Interview

As a Capability Interview is a type of Re-engagement Requirement the Provider must take the action required when a Participant fails to meet a Re-engagement Requirement. See the relevant information in Section 12.4.6 Re-engagement Requirements.

Conducting a Capability Interview

The Provider must accurately complete a pre-interview check in the Department’s IT Systems prior to the Capability Interview.

The Provider must conduct the Capability Interview in accordance with to the Provider Actions – Conducting a Capability Interviewsign-in required (sign-in required) supporting document on the Provider Portal.

System step — To finalise the Capability Interview, select ‘submit’ in Department’s IT Systems after:

• completing the pre-interview check, and

• recording all the relevant information during the Capability Interview.

Actioning the outcomes of the Capability Interview

The Department's IT Systems will display one of the following outcomes of a Capability Interview:

• Capable

• Not Capable due to errors in compulsory requirements

• Not Capable of meeting current requirements due to ongoing circumstances

• Not Capable due to newly disclosed information, or

• Not Capable due to a change in service eligibility or stream.

Each of these outcomes is discussed in further detail below.

The Provider must explain the outcome of the Capability Interview to the Participant while they are still in attendance/in contact during the Capability Interview appointment. The Provider must ensure that the Participant understands what the Capability Interview outcome means and what will happen next.

(Deed Reference(s): Clause 139.8, 139.9, 139.10)

Capable

If the outcome of the Capability Interview is that the Participant’s Job Plan and compulsory requirements are suitable for the Participant, they will continue in the Warning Zone with 3 Demerits.

Because the Job Plan is suitable for the Participant, the Mutual Obligation Requirements specified in the Participant’s Job Plan do not need to be updated.

Providers must undertake the following actions:

• Advise the Participant that their Job Plan and Mutual Obligation Requirements have been assessed as being suitable for them

• Advise the Participant, if they continue to commit Mutual Obligation Failures without a Valid Reason, this may result in a Capability Assessment with Services Australia, and

• Explain to the Participant their Mutual Obligation Requirements and the consequences of non-compliance.

Not Capable due to errors in compulsory requirements

If the outcome of the Capability Interview is that there are errors in the Participant’s compulsory requirements, the Participant is returned to the Green Zone with their Demerits reset to zero.

Providers must undertake the following actions:

• Discuss the Participant’s requirements with them, renegotiate and update the Participant’s Job Plan and compulsory requirements so that they are suitable. This should be undertaken as soon as the Capability Interview outcome has been determined by the Department’s IT Systems, or if this is not possible within 10 Business Days following the finalisation of the Capability Interview, and

• Explain to the Participant their Mutual Obligation Requirements and the consequences of non-compliance.

Note: Until the Job Plan has been renegotiated and agreed, the Participant cannot accrue further Demerits. Once the Participant has agreed to their new Job Plan, the Participant will be able to accrue Demerits.

Not Capable of meeting current requirements due to ongoing circumstances

If the outcome of the Capability Interview is the Participant is not capable of meeting their current compulsory requirements due to ongoing circumstances, the Participant is returned to the Green Zone with their Demerits reset to zero.

Providers must undertake the following actions:

• Discuss the Participant’s requirements with them, renegotiate and update the Participant’s Job Plan and compulsory requirements so that they are suitable. This should be undertaken as soon as the Capability Interview outcome has been determined by the Department’s IT Systems, or if this is not possible within 10 Business Days following the finalisation of the Capability Interview, and

• Explain to the Participant their Mutual Obligation Requirements and the consequences of non‑compliance.

Note: Until the Job Plan has been renegotiated and agreed, the Participant cannot accrue further Demerits. Once the Participant has agreed to their new Job Plan, the Participant will be able to accrue Demerits.

Not Capable due to newly disclosed information

If the outcome of the Capability Interview is that the Participant was not capable of meeting their compulsory requirements at the time non-compliance occurred, the Participant is returned to the Green Zone with their Demerits reset to zero.

Providers must undertake the following actions:

• Consider if the Mutual Obligation Requirements specified in the Participant’s Job Plan remain appropriate to the Participant’s circumstances and the Participant can meet them

• If not, discuss the Participant’s requirements with them, renegotiate and update the Participant’s Job Plan and compulsory requirements so that they are suitable. This can be undertaken at the Capability Interview, or if this is not possible within 10 Business Days following the finalisation of the Capability Interview, and

• Explain to the Participant their Mutual Obligation Requirements and the consequences of non-compliance.

Not Capable due to a change in service eligibility or stream

If the outcome of the Capability Interview is the Participant is not capable due to a change in service eligibility or stream, the Participant is returned to the Green Zone with their Demerits reset to zero.

Providers must undertake the following actions:

• Advise the Participant that their level of servicing or program eligibility has changed because of an updated JSCI score or new ESAt

• Discuss the Participant’s requirements with them, renegotiate and update the Participant’s Job Plan and compulsory requirements so that they are suitable. This should be undertaken as soon as the Capability Interview outcome has been determined by the Department’s IT Systems, or if this is not possible within 10 Business Days following the finalisation of the Capability Interview, and

• Explain to the Participant their Mutual Obligation Requirements and the consequences of non-compliance.

12.4.8 Capability AssessmentCopy citation · §12.4.8

A Capability Assessment is the Re-engagement Requirement when a Participant has 5 confirmed Demerits or a Demerit for a fast-track failure when they already have 3 confirmed Demerits.

A Capability Assessment is further protection for the most vulnerable Participants to confirm that a Participant’s Job Plan and Mutual Obligation Requirements are suitable and gives another opportunity for Participants to disclose issues that may be affecting their ability to meet the requirements specified in their Job Plan.

Capability Assessments are conducted by Services Australia.

Even though Providers do not conduct Capability Assessments, Providers still have obligations under the Deed in relation to Capability Assessments.

(Deed Reference(s): Clause 139.11)

Irrespective of the outcome, following a Capability Assessment, the Participant is returned to the Green Zone by the Department of Employment and Workplace Relations with their Demerits reset to zero.

If a Participant commits further Mutual Obligation Failures after participating in a Capability Assessment but before the Capability Assessment has been finalised in the Department’s IT Systems, the Participant will not accrue Demerits, but their Income Support Payment may still be suspended to encourage the Participant to reconnect with their Provider.

Providers must still report Work Refusal Failures, regardless of whether the Capability Assessment is finalised in the Department’s IT Systems.

Note: Work Refusal Failures are currently suspended until otherwise advised. Providers do not need to create Work Refusal Failure reports until this suspension ends.

When a Capability Assessment is triggered

Services Australia conducts a Capability Assessment when the Participant has:

• reached 5 Demerits (including through a ‘fast-track’ failure)

• been found capable of meeting their requirements at a Capability Interview, and

• have not had a Capability Assessment conducted in the previous 60 calendar days that found their requirements suitable.

In these circumstances a Capability Assessment is said to be ‘triggered’, and the Department’s IT Systems will identify that the Participant’s Re-engagement Requirement is Capability Assessment.

When alerted that the Participant must attend a Capability Assessment, the Provider must read the formal notification script displayed in the Department’s IT Systems to the Participant. This notification informs the Participant that:

• they must contact Services Australia as soon as possible to participate in a Capability Assessment, and

• if their payment is not already suspended, that their Income Support Payment will be suspended in 5 Business Days if they do not contact Services Australia, or

• if their payment is suspended, that it will remain suspended until they meet the Re-engagement Requirement.

Participants will be unable to report their income for their next fortnightly Income Support Payment until they contact Services Australia to undertake the Capability Assessment.

Actioning the outcomes of a Capability Assessment

Services Australia will notify Providers of Capability Assessment outcomes via the Department’s IT Systems.

Once the Capability Assessment has been finalised in the Department’s IT Systems, the Provider must review the outcomes and any servicing recommendations Services Australia has recorded in the Capability Management Tool.

The possible outcomes are that the Participant is:

• Capable

• Not Capable due to errors in compulsory requirements

• Not Capable of meeting current requirements due to ongoing circumstances

• Not Capable due to newly disclosed information, or

• Not Capable due to a change in service eligibility or stream (Note: This outcome is applicable when the Participant is not capable due to a change in service eligibility).

Each of the above outcomes are discussed in further detail below.

System step — Providers can view the Capability Assessment outcomes on the ‘Targeted Compliance Framework History’ screen in the Departments IT Systems.

The Provider must ensure that the Participant understands what the Capability Assessment outcome means and what will happen next.

Note: When a Participant is found Not Capable, the Participant cannot accrue further Demerits until the Job Plan is updated and agreed.

Capable

If the outcome of the Capability Assessment is that the Participant’s Job Plan or Mutual Obligation Requirements is suitable for the Participant, they will move into the Penalty Zone. The Department of Employment and Workplace Relations will then move the Participant from the Penalty Zone back to the Green Zone.

Because the Job Plan and compulsory requirements are suitable for the Participant, the Mutual Obligation Requirements do not need to be updated.

Providers must undertake the following actions:

• Advise the Participant that their Job Plan and compulsory requirements have been assessed as being suitable for them

• Explain to the Participant their Mutual Obligation Requirements in their Job Plan and the consequences of non-compliance, and

• Review the Capability Management Tool as Services Australia may have identified issues that the Provider will need to consider when renegotiating the Participant’s Mutual Obligation Requirements in the future.

Not Capable due to errors in compulsory requirements

If the outcome of the Capability Assessment is that there are errors in the Participant’s compulsory requirements, the Participant is returned to the Green Zone with their Demerits reset to zero.

Providers must undertake the following actions:

• Advise the Participant that their Demerits have been reset to zero and they have returned to the Green Zone

• Review the Capability Management Tool for service recommendations recorded by Services Australia and consider those recommendations before renegotiating the Participant’s Mutual Obligation Requirements

• In consultation with the Participant, renegotiate and update the Participant’s Job Plan and compulsory requirements so that they are suitable. This should be undertaken within 10 Business Days following the finalisation of the Capability Assessment, and

• Explain to the Participant their Mutual Obligation Requirements and the consequences of non-compliance.

Not Capable of meeting current requirements due to ongoing circumstances

If the outcome of the Capability Assessment is the Participant is not capable of meeting their current compulsory requirements due to ongoing circumstances, the Participant is returned to the Green Zone with their Demerits reset to zero.

Providers must undertake the following actions:

• Advise the Participant that their Demerits have been reset to zero and they have returned to the Green Zone

• Review the Capability Management Tool for service recommendations recorded by Services Australia and must consider those recommendations before -discussing the Participant’s Mutual Obligation Requirements with them

• In consultation with the Participant, renegotiate and update the Participant’s Job Plan and compulsory requirements so that they are suitable. This should be undertaken within 10 Business Days following the finalisation of the Capability Assessment, and

• Explain to the Participant their Mutual Obligation Requirements and the consequences of non-compliance.

Not Capable due to newly disclosed information

If the outcome of the Capability Assessment is that the Participant was not capable of meeting their compulsory requirements at the time non-compliance occurred, the Participant is returned to the Green Zone with their Demerits reset to zero.

Providers must undertake the following actions:

• Advise the Participant that their Demerits have been reset to zero and they will return to the Green Zone

• Review the Capability Management Tool for service recommendations and/or barriers recorded by Services Australia and consider if the Participant’s Job Plan is still suitable for the Participant

• Consider if the Mutual Obligation Requirements specified in the Participant’s Job Plan remain appropriate to the Participant’s circumstances and the Participant can meet them

• If not, discuss the Participant’s requirements with them, renegotiate and update the Participant’s Job Plan and compulsory requirements so that they are suitable. This should be undertaken within 10 Business Days following the finalisation of the Capability Assessment, and

• Explain to the Participant their Mutual Obligation Requirements and the consequences of non-compliance.

Not Capable due to a change in service eligibility or stream

If the outcome of the Capability Assessment is the Participant is not capable due to a change in service eligibility or stream the Participant is returned to the Green Zone with their Demerits reset to zero.

Providers must undertake the following actions:

• Advise the Participant that their level of servicing or program eligibility has changed because of an updated JSCI score or new ESAt

• Advise the Participant that their Demerits have been reset to zero and they will return to the Green Zone

• Review the Capability Management Tool for service recommendations and/or barriers recorded by Services Australia that must be considered before renegotiating the Participant’s Mutual Obligation Requirements

• In consultation with the Participant, renegotiate and update the Participant’s Job Plan and compulsory requirements so that they are suitable. This should be undertaken within 10 Business Days following the finalisation of the Capability Assessment, and

• Explain to the Participant their Mutual Obligation Requirements and the consequences of non-compliance.

12.5 Compliance actions - Work Refusal FailuresCopy citation · §12.5

This Section applies to Participants (Mutual Obligation).

Note: Work Refusal Failures are currently suspended until otherwise advised. This section describes how Providers must manage Work Refusal Failures when this suspension is not in place. During the suspension period, Providers do not need to take any action when a Participant refuses Suitable Work.

12.5.1 What is a Work Refusal FailureCopy citation · §12.5.1

Participants commit a Work Refusal Failure when they fail to accept or commence suitable Employment (subject to certain exemptions).

Participants can commit a Work Refusal Failure even if they have Meaningful Engagement Job Plan and looking for work is not part of the agreed approach for meeting the Meaningful Engagement Requirement.

When the Provider submits a report because of a Work Refusal Failure, the report will be sent through the Department’s IT Systems to Services Australia. Creation of a Work Refusal Failure report will trigger resolution time.

Services Australia will determine if the Participant has a Reasonable Excuse for the Work Refusal Failure.

If Services Australia determines a Participant does not have a Reasonable Excuse for a Work Refusal Failure, the Participant’s Income Support Payment is cancelled and they are precluded from payment for 4 weeks. Participants can reapply for payment at any time after their payment has been cancelled but they will not receive Income Support Payment again until they have served their preclusion period.

12.5.2 Identifying a Work Refusal FailureCopy citation · §12.5.2

Providers have obligations under the Deed when they become aware (e.g. an Employer notifies the Provider, or the Provider receives information from the Department) that a Participant has committed Work Refusal Failure.

(Deed Reference(s): Clause 135.1, 140)

Contact with the Participant

Providers must try to contact the Participant on the same Business Day that they become aware of the apparent Work Refusal Failure.

Where contact can be made with the Participant, the Provider must discuss the circumstances of the apparent Work Refusal Failure with the Participant and consider the issues outlined below to determine if the Participant has refused or failed to accept an offer of suitable Employment, and therefore there is evidence they have committed a Work Refusal Failure.

If, after discussing the circumstances of the apparent failure with the Participant, the Provider considers the Participant has committed a Work Refusal Failure, the Provider must then undertake the steps needed to report the Work Refusal Failure as outlined in Section 12.5.3 Reporting a Work Refusal Failure.

If, after discussing the circumstances of the apparent Work Refusal Failure with the Participant, the Provider considers the Participant has not committed a Work Refusal Failure, no further action is needed.

Where contact cannot be made with the Participant, the Provider must undertake the steps to report the apparent Work Refusal Failure. Further details are outlined in Section 12.5.3 Reporting a Work Refusal Failure.

If there is contact with the Participant after the Business Day on which the Provider became aware of the apparent Work Refusal Failure, the Provider must discuss the circumstances of the apparent Work Refusal Failure with the Participant and must consider if the Participant has refused or failed to accept an offer of suitable Employment. The Provider must then update the draft Work Refusal Failure report accordingly. Further details are outlined in Section 12.5.3 Reporting a Work Refusal Failure.

If the Provider is not in contact with the Participant, as noted in Section 12.2. Compellable Contact Appointment, Providers can schedule a compulsory Contact Appointment where there has been an apparent Work Refusal Failure.

If the Participant does not contact their Provider, their Income Support Payment may be suspended and then cancelled.

Determining if the Participant has refused or failed to accept an offer of suitable Employment

When the Provider discusses the circumstances of an apparent Work Refusal Failure with the Participant, the Provider must first consider if the Participant has refused or failed to accept an offer of Employment.

If the Provider assesses that the Participant has not received an offer of Employment (for example, they attended an interview but were not offered the position), the Participant has not committed a Work Refusal Failure.

If the Provider assesses that the Participant has refused or failed to accept an offer of Employment, the Provider must then assess if the Employment offered was suitable for the Participant. There are factors for determining if work was unsuitable listed in Social Security Law. For example, the offer of Employment would be unsuitable for an Inclusive Employment Australia Participant if any of the following apply:

• the Participant was already working and cannot take up both jobs (because hours of work overlap or when combined total hours would exceed number of hours considered suitable) or remuneration for the new job is lower than the existing job

• the Participant is undertaking approved Education or Training and the hours the Participant would be required to undertake the work conflict with the hours of study

• the Participant lacks the particular skills, experience or qualifications that are needed to perform the work, and no training will be provided by the Employer

• there is medical evidence that the Participant has an illness, disability or injury that would be aggravated by the conditions in which the work would be performed

• the Participant is a Principal Carer Parent, and does not have access to appropriate care and supervision for the children at the times when the Participant would be required to undertake the work (which includes reasonable amounts of time that would be needed for the Participant to travel between home and the work)

• the work hours are above the Participant's assessed future work capacity with intervention

• the work hours are greater than 15 hours per week

• the acceptance of an offer of a permanent full-time job would jeopardise the current employment or the job prospects of the Participant’s partner

• performing the work in the conditions in which the work would be performed would constitute a risk to health or safety and would contravene a WHS Law

• the terms and conditions for the work would be less generous than the applicable statutory conditions

• commuting between the Participant’s home and the place of work would be unreasonably difficult — that is, it would require the Participant to spend more than 60 minutes each way using the mode of transport normally available to the Participant

• the work requires the Participant to change residence (in most cases)

• the Participant has a verifiable and legitimate objection to the work on moral, cultural or religious grounds — for example, there is evidence that the Participant adheres to a particular set of moral, ethical or religious values and aspects of the work would be inconsistent with those values

• the work would require the Participant to enlist in the Defence Force or the Reserves

• the Participant would be financially worse off by undertaking the work, by comparison with not undertaking the work, considering:

  • the financial cost for personal care requirements incurred to get ready for work or while on the job

  • the financial cost for disability aids and equipment needed for participation which are not covered by the Employer

  • the financial cost of travel that would be incurred by the Participant in undertaking the work

  • the reduction in income support, additional tax paid or impact on public housing, or

  • the financial benefit for the Participant of undertaking the work would be marginal because of the financial cost to the Participant in providing appropriate care and supervision for one or more children, for whom the Participant is the Principal Carer Parent, at the times when the Participant would have to undertake the work.

More information on whether the work is suitable is available in the Suitable Work Provider Fact Sheetsign-in required (sign-in required) on the Provider Portal.

The Provider must ensure that they capture the reason that the Participant gave as to why they refused or failed to accept the offer of suitable work.

12.5.3 Reporting a Work Refusal FailureCopy citation · §12.5.3

For failures or apparent failures, the Work Refusal Failure report must be created and finalised within 10 Business Days of the incident date.

The incident date is the date on which the Participant refused an offer of suitable Employment. For example:

• if a Participant was offered at job at a Job Interview and:

  • refused on the day of the interview, the incident date is the date of the interview, or

  • refused shortly after the interview, the incident date is the date that when they refused (for example, if refused 3 days after the interview, the incident date is 3 days after the interview), or

• if the Participant was given a formal offer of suitable Employment and:

  • refused, the incident date is the day they refused the job

  • failed to accept within 14 days, the incident date is the 14th day, or

  • failed to accept by any deadline provided (if earlier than 14 days), the incident date is date at which they had failed to accept the offer (for example, if they had 10 days to accept the offer and had not replied by the deadline, the incident date is the 10th day, or

• if, when the offer was made, the Participant agreed a start date with the potential Employer, but did not start work on that date, the incident date is the date the Participant was due to start.

If the report is not created and submitted within 10 Business Days of the incident date (for example, where the Provider does not become aware of an apparent Work Refusal Failure until after 10 Business Days have passed since the incident date), the Department’s IT Systems will not allow the Work Refusal Failure report to be finalised, meaning the Work Refusal Failure will not be reported to Services Australia. Instead, the Provider should schedule a Contact Appointment to discuss the importance of seeking, accepting and retaining suitable paid work.

System step — Detailed instructions on how to create a Work Refusal Failure Report are available in the Reporting Work Refusal Failures task card.

(Deed Reference(s): Clause 135.1, 140)

Steps to report a Participant has committed a Work Refusal Failure

By creating and finalising a Work Refusal Failure report as described below, the Provider is confirming that they consider that the Participant has committed a Work Refusal Failure.

System step — The Provider must create and finalise the Work Refusal Failure report by undertaking the following steps in the Department’s IT Systems:

• Step 1: Select ‘create compliance’.

• Step 2: Select the Event Type of the Work Refusal Failure from the drop-down menu that will appear as follows:

• ‘job seeker failed to accept a suitable job’, or

• ‘job seeker failed to commence suitable job’.

  • Step 3: Record the incident date (discussed above).

  • Step 4: Answer ‘yes’ to the question of if they are in contact with the Participant.

  • Step 5: Select the reason from the ‘Reasons not accepted’ column of the drop-down menu that most closely aligns with the reason the Participant gave as to why they refused or failed to accept the offer of suitable Employment.

  • Step 6: Accurately answer the questions that will be automatically generated.

  • Step 7: Select ‘create’, which will finalise the Work Refusal Failure report and send it to Services Australia.

Services Australia will assess if the Participant had a Reasonable Excuse for the Work Refusal Failure, which will determine whether the Participant’s Income Support Payment is cancelled.

Steps to create a draft report, as a Participant has apparently committed a Work Refusal Failure

When the Provider becomes aware that a Participant has apparently committed a Work Refusal Failure but is unable to contact the Participant on the same Business Day, the Provider must undertake the steps described below in relation to reporting the apparent Work Refusal Failure.

System step — The Provider must create the Work Refusal Failure report by undertaking the following steps in the Department’s IT Systems:

• Step 1: Select ‘create compliance’.

• Step 2: Select the Event Type of the Work Refusal Failure from the drop-down menu that will appear:

• ‘job seeker failed to accept a suitable job’, or

• ‘job seeker failed to commence suitable job’

  • Step 3: Record the incident date (discussed above).

  • Step 4: answer ‘no’ to the question of if they are in contact with the Participant.

  • Step 5: Accurately answering the questions that will be automatically generated.

  • Step 6: Select ‘create’, which will create a draft Work Refusal Failure report.

The Participant will receive notification advising that they appear to have committed an apparent Work Refusal Failure, that they must contact their Provider as soon as possible, and their payment may be suspended after 5 Business Days if they take no further action.

If the Participant does not contact their Provider within the 5 Business Days resolution period, the Department’s IT Systems will automatically suspend the Participant’s Income Support Payment, and the Participant will receive notification that their Income Support Payment has been suspended and to contact their Provider.

The Participant’s Re-engagement Requirement is to contact their Provider to discuss the apparent Work Refusal Failure. If the Participant’s Income Support Payment has been suspended, the suspension will be lifted once they contact their Provider, and their Provider finalises the Work Refusal Failure report.

Where there is contact, the Provider must then discuss the apparent failure in the same conversation, as outlined in 12.5.2 Identifying a Work Refusal Failure, and take the appropriate steps outlined below to update the draft Work Refusal Failure report that has already been created on the Department’s IT Systems.

If the Participant does not contact their Provider within 28 calendar days of their payment suspension date, their Income Support Payment will automatically be cancelled.

Steps to update a draft report confirming Participant has committed a Work Refusal Failure

By finalising a Work Refusal Failure report as described below, the Provider is confirming that they have been in contact with the Participant and considers that the Participant has committed a Work Refusal Failure.

System step — The Provider must update and finalise the Work Refusal Failure report by undertaking the following steps in the Department’s IT Systems:

• Step 1: Select the edit option in the draft Work Refusal Failure report.

• Step 2: Select ‘no’ to the question of if they accepted the reason given by the Participant.

• Step 3: Select the reason from the ‘Reasons not accepted’ column of the drop-down menu that most closely aligns with the reason that the Participant gave as to why they refused or failed to accept the offer of suitable Employment.

• Step 4: Select ‘submit’, which will send the Work Refusal Failure report to Services Australia.

Services Australia will assess if the Participant had a Reasonable Excuse for the Work Refusal Failure, which will determine whether the Participant’s Income Support Payment is cancelled.

Steps to update a draft report confirming Participant has not committed a Work Refusal Failure

By finalising a Work Refusal Failure report as described below, the Provider is confirming that they have been in contact with the Participant and considers that the Participant has not committed a Work Refusal Failure.

System step — The Provider must update and finalise the Work Refusal Failure report by undertaking the following steps in the Department’s IT Systems:

• Step 1: Select the edit option in the draft Work Refusal Failure report.

• Step 2: Select ‘yes’ to the question of if they accepted the reason given by the Participant.

• Step 3: Select the reason from the ‘Reasons accepted’ column of the drop-down menu that most closely aligns with the reason that the Participant gave as to why they did not refuse or failed to accept the offer of suitable Employment.

• Step 4: Select ‘submit’, which will close the report (i.e. the report will not be sent to Services Australia for investigation).

12.5.4 Actions after a Work Refusal Failure is appliedCopy citation · §12.5.4

When the Work Refusal Failure is applied, this will result in the Participant’s Income Support Payment being cancelled and the Participant will need to serve a 4-week preclusion period. Cancellation of their payment will require the Participant to submit a new claim for payment.

Note: Services Australia staff will tell the Participant the outcome of their decision, consequences of this decisions, and their review and appeal rights.

When a Participant has a Work Refusal Failure applied by Services Australia, the Provider should make a note of this on the Participant’s record in the Department’s IT Systems — noting that access to the Participant’s record is restricted to 28 Calendar Days after the Exit.

System step — Providers must enter a file note using the comment functionality in the Program Summary on the Department’s IT Systems.

If the Participant seeks to submit a new claim for Income Support Payments with Services Australia, they may return to Inclusive Employment Australia — either resuming Services having returned within 13 weeks of the Exit or being subject to a new Referral.

Where a Participant resumes following the preclusion period, the previous Job Plan will remain in force until another Job Plan is created. If this was a Meaningful Engagement Job Plan, the Provider must take the appropriate steps to enter into a Detailed Job Plan with the Participant as outlined in Chapter 4: Job Plans at the first Contact Appointment following the Work Refusal Failure.

Where a Participant is subject to a new Referral, Providers should consider if it is appropriate to enter into a Meaningful Engagement Job Plan or a Detailed Job Plan depending on the duration between the Work Refusal Failure and Commencement, having also reviewed the Job Plan history and Program Summary.

System step — Providers can view comments in the Program Summary on the Department’s IT Systems made by other Inclusive Employment Australia Providers.

12.6 Compliance actions - Unemployment FailuresCopy citation · §12.6

This Section applies to Participants (Mutual Obligation) and Volunteers (Mutual Obligation).

12.6.1 What is an Unemployment FailureCopy citation · §12.6.1

Participants commit an Unemployment Failure when they become unemployed either:

• as a direct or indirect result of a voluntary act (unless Services Australia is satisfied that the voluntary act was reasonable), or

• as a result of their misconduct as an employee.

Where a Participant becomes unemployed as described above, this is referred to as a ‘potential Unemployment Failure’ in these Guidelines (i.e. a Participant has potentially committed an Unemployment Failure’).

Participants can commit an Unemployment Failure even if they have Meaningful Engagement Job Plan.

12.6.2 Identifying a potential Unemployment FailureCopy citation · §12.6.2

Where Providers identify that a Participant may have committed an Unemployment Failure (that is, become aware that a Participant voluntarily left a suitable job or was dismissed for misconduct), the Provider should discuss with the Participant their reasons for leaving the job, or whether there was misconduct, at the next Contact.

Determining if the unemployment is due to a voluntary act of the Participant

When the Provider discusses the reasons that the Participant became unemployed, the Provider must consider if the Participant became unemployed as a direct or indirect result of a voluntary act. Examples include:

• the Participant resigns from a job or end their contract early, with or without giving notice (direct voluntary act), and

• the Participant leaves a job without informing the Employer (indirect voluntary act).

The Participant does not commit an Unemployment Failure when they become unemployed involuntarily, for a reason that was outside their control. For example:

• the Employer is downsizing and dismissed the Participant

• the Employer is restructuring or relocating and either dismissed the Participant or the Participant left as the location is no longer suitable

• the Participant was dismissed as the Employer considered them to be unsuitable, unable to do the job or for incompetence

• the Participant was unfairly dismissed, for a prohibited reason under the Fair Work Act, or

• the Participant left or was dismissed due to illness, disability or injury, and medical evidence has been provided.

If the Participant became unemployed because of a voluntary act, the Provider must also look to understand why the Participant did the voluntary act. A voluntary act may still be reasonable, and therefore not an Unemployment Failure, according to factors listed in Social Security Law.

For example, the Employment would have been unsuitable for an Inclusive Employment Australia Participant if any of the following apply:

• the job involved skills, experience or qualifications that the Participant did not have, and the Employer did not provide appropriate training

• the number of training hours was excessive compared with their assessed work capacity

• the work aggravated pre-existing disability, illness or injury

• the Employer did not provide appropriate support or facilities to take account of the Participant’s disability, illness or injury

• the Participant is a Principal Carer Parent, and did not have access to appropriate care and supervision for the children at the times when the Participant had to undertake the work (which includes reasonable amounts of time needed for the Participant to travel between home and the work)

• the work hours were greater than 15 hours per week

• the work involved health or safety risks, and would contravene a WHS Law

• the work was under terms and conditions that were less generous than the applicable statutory conditions

• commuting between the Participant’s home and the place of work was unreasonably difficult, or

• the Participant has a verifiable and legitimate objection to the work on moral, cultural or religious grounds.

Determining if the unemployment is due to the Participant’s misconduct as an employee

The Provider must have regard to the following factors (as relevant) when assessing if the Participant became unemployed because of the Participant’s misconduct as an employee:

• deliberate failure by the Participant to produce/deliver a reasonable amount of work

• the Participant’s unauthorised absence(s) from work without good reason

• the Participant’s improper behaviour or practices, such as theft, assault or harassment of other employees

• deliberate actions by the Participant that cause serious risk to the health or safety of other employees, or

• deliberate actions that threaten the reputation, viability or profitability of the Employer.

12.6.3 Reporting a potential Unemployment FailureCopy citation · §12.6.3

Although the functionality is available for Providers to report Unemployment Failures, Providers must not submit Unemployment Failure reports to Services Australia.

12.6.4 Actions after an Unemployment Failure is appliedCopy citation · §12.6.4

When an Unemployment Failure is applied, by Services Australia, this will result in the Participant being required to enter into a Detailed Job Plan at the first Contact Appointment following the Unemployment Failure (see Chapter 4: Job Plans for information on entering into a Detailed Job Plan).

When a Participant has a Work Refusal Failure applied by Services Australia, the Provider should make a note of this on the Participant’s record in the Department’s IT Systems — noting that access to the Participant’s record is restricted to 28 Calendar Days after the Exit.

System step — Providers must enter a file note using the comment functionality in the Program Summary on the Department’s IT Systems.

12.7 DSP non-compliance and associated compliance actionsCopy citation · §12.7

This Section applies to DSP Recipients (Compulsory Requirements).

For DSP Recipients (Compulsory Requirements), instances of non-compliance must be reported to Services Australia by the Provider.

Services Australia is responsible for determining if a DSP Recipient (Compulsory Requirements) has failed to meet their requirements in their Participation Plan.

Note: As described in Section 5.2. for Participants undertaking a Program of Support a person may be required to complete a Program of Support before they claim the DSP. A Participant undertaking a Program of Support is not a DSP Recipient (Compulsory Requirements) but may be a Participant (Mutual Obligation) or Participant (Voluntary) depending on whether they are receiving an Income Support Payment and have Mutual Obligation Requirements related to that payment.

Interaction with Job Plan types

A DSP Recipient (Compulsory Requirements) may have a Meaningful Engagement Job Plan or Detailed Job Plan — see Chapter 4: Job Plans. The Participant’s Job Plan type will impact when a Provider needs to undertake associated compliance actions.

A DSP Recipient (Compulsory Requirements) with a Meaningful Engagement Job Plan must have non-compliance reported to Services Australia if they do not:

• attend, and be punctual for, their Initial Interview

• attend, and be punctual for, a compulsory Contact Appointment, once notified that they are being compelled to attend under Social Security Law, or

• agree to their Job Plan.

A DSP Recipient (Compulsory Requirements) with a Detailed Job Plan must have non-compliance reported to Services Australia if they do not:

• attend, and be punctual for, an Initial Interview — noting that a Participant may transfer and thus have an Initial Interview scheduled because of the Referral process

• agree to their Job Plan

• attend any compulsory Contact Appointments, as detailed within their Job Plan, and

• attend any compulsory Activities and Job Interviews, as detailed within their Job Plan.

12.7.1 Provider ObligationsCopy citation · §12.7.1

Provider staff are delegated certain powers under Social Security Law to notify DSP Recipients (Compulsory Requirements) of their requirements.

The Provider’s main obligations relating to compliance for DSP Recipients (Compulsory Requirements) include:

• making sure the Participant’s requirements set out in their Job Plan (including any Job Search Requirement, where applicable) are suitable and tailored to their personal circumstances and commitments — refer to Chapter 4: Job Plans and Chapter 5: Participation requirements

• actively checking and recording each Participant’s attendance and level of engagement, and

• timely and accurate recording in the Department's IT Systems when a Participant has not complied, where the Provider has determined that it will report non-compliance to Services Australia.

(Deed Reference(s): Clause 136.1(c), 138.3, 142)

Participants can lodge a Complaint about the requirements in their Job Plan, and the decision to move to a Detailed Job Plan, using the following process.

• Participants should discuss their concerns about these decisions with their Provider

• If they still wish to dispute the decision after this discussion, they can contact the NCSL (details for which can be found on the Workforce Australia website). By contacting the NCSL, the Participant is in effect making an Inclusive Employment Australia-related Complaint

• If required, the Provider must action Complaints that are referred to them by the NCSL. This may include reviewing the decision-making process, including any Documentary Evidence recorded on the Department’s IT Systems, and

• If they are not satisfied with the response they receive, the Participant may take the matter further by contacting the Ombudsman’s Office on 1300 362 072.

12.7.2 Identifying DSP non-complianceCopy citation · §12.7.2

Attempting contact with a Participant

Where the Participant does not attend an Appointment with their Provider, the Provider must try to contact the Participant on the day of non-attendance.

Where a Participant does not attend a Mandatory Activity on a particular day or days, the Provider must try to contact the Participant on the same Business Day that they become aware of the instance or instances of non-attendance.

Where contact can be made with the Participant, the Provider must discuss the non-attendance with the Participant and consider if the Participant has a reasonable excuse.

Where contact cannot be made with the Participant, Providers can decide if it is appropriate to report the non-attendance to Services Australia.

Assessing if a Participant has a reasonable excuse

A reasonable excuse would include circumstances beyond the Participant's control.

Providers must consider certain factors to find whether the DSP Recipient (Compulsory Requirements) had a reasonable excuse, including the Participant’s:

• personal circumstances

• system-recorded vulnerability indicators (if any)

• recent compliance history, and

• any other information the Provider believes is relevant.

12.7.3 Reporting DSP non-complianceCopy citation · §12.7.3

If a Provider considers that a DSP Recipient (Compulsory Requirements) has failed to meet a reasonable requirement, the Provider:

• must consider if the Participant had a reasonable excuse for the failure

• can choose to submit a participation report to Services Australia if they consider the Participant could reasonably have completed the requirement.

Where the Provider chooses to report the non-compliance, one of the following compliance reports must be submitted to Services Australia within 10 Business Days of the incident date:

• DSP Appointment Report Diary (DARD) for failure to attend a compulsory Provider Appointment

• DSP Activity Report (DACR) for:

  • failure to undertake a Mandatory Activity, or

  • failure to attend a compulsory Job Interview, or

• DSP Appointment Report Job Plan (DARJ) for failure to agree to a Job Plan.

System step — The Provider must complete and submit the relevant compliance report to Services Australia through the Department’s IT Systems.

Services Australia will review any submitted compliance reports as part of its next Participation Interview with the Participant. These interviews usually occur every three months.

Services Australia considers a range of factors when determining whether to act about a participation failure, including:

• if the failed requirement was reasonable for the Participant’s circumstances

• if the Participant had an acceptable reason for not meeting the requirement

• the Participant’s earlier compliance history, and

• if financial penalties are appropriate for the Participant.

If Services Australia considers the Participant has not participated appropriately it can take a range of actions including financial penalties.

Providers should continue to set appropriate requirements for DSP Recipients (Compulsory Requirements) on their Caseload, regardless of any actions taken by Services Australia.

Where the Provider chooses not to report the non-compliance, they must use another engagement strategy to ensure the Participant meets their requirements.

12.8 Record KeepingCopy citation · §12.8

Providers must keep Documentary Evidence which is not kept on the Department’s IT Systems.

Below is a summary of the Documentary Evidence requirements for this Chapter.

For failure to meet the Meaningful Engagement Requirement

Evidence requirement — File note recording a summary of how the provider determined that the participant was not meaningfully engaging and hence failed to meet the Meaningful Engagement Requirement.

Evidence requirement — File note recording a warning was issued in relation to levels of engagement.

Evidence requirement — File note recording details of engagement or servicing strategies delivered by the Provider and the results of these strategies on level of engagement.

Evidence requirement — Any determination as to whether a Pattern of Disengagement has been shown as determined by the Provider.

For Work Refusal Failures

Evidence requirement — Depending on the failure or apparent failure, in addition to the evidence recorded in the Department’s IT Systems, Documentary Evidence could include:

• the format of the prior notification

• a hard copy of a manually prepared notification of the requirement

• any relevant fully or partially completed Job Searches that do not meet quality standards

• details of the relevant incident, including the parties involved and what occurred

• Valid Reason assessments

• notification of an Employment offer

• details related to their Employment and/or Employer, or

• details provided by a Complementary Services provider.

For DSP compliance reporting

Evidence requirement — In addition to the evidence recorded in the Department’s IT Systems, Documentary Evidence could include:

• the format of the prior notification

• a hard copy of a manually prepared notification of the requirement

• details of the relevant incident, including the parties involved and what occurred, or

• reasonable excuse assessments.