Human Resources

Market Allowance

Policy No.
UP07/212
Function
Human Resources
Authoring Organisational Unit
Human Resources - Central Unit
Date Approved
26/06/2007 Revised 25/09/2014
Next Review Date
25/09/2016
Approving Body
Senior Deputy Vice-Chancellor And Registrar

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The University of Western Australia

University Policy on: Market Allowance

Purpose of the policy and summary of issues it addresses:

This policy defines the nature and purpose of the Market Allowance, which will be assessed taking market conditions into account. It sets out eligibility criteria and other conditions that apply.

This policy does not normally apply to casuals.

Definitions:

"Approved Delegate" means a position granted authority to act on behalf of the Vice Chancellor with varied levels of authority in line with the University's Delegations.

"Base Salary" means the salary point in the relevant University salary scale paid to the employee concerned.

"Employee" means a person employed by the University.

"Supervisor" means the person who is responsible for day-to-day supervision of the employee.

"University" means The University of Western Australia.

Policy statement:

This policy describes the purpose and principles unique to market allowance. The policy must be read in conjunction with University Policy: Discretionary Allowances & Payments, which defines the core principles, approval, review and governance and accountability requirements common to all discretionary allowances.

A comparison table of discretionary allowances, which can be used to determine which allowance is applicable to a particular circumstance, can be found at Overview of Discretionary Allowances.

1 Nature of Allowance

Payment of a market allowance may be made where specific evidence is provided of:

  • difficulty in recruiting or retaining a particular category of employee (eg a particular trade) or an individual where there is a demonstrated market demand for their professional skills or expertise; or
  • market conditions having altered.

1.1 Market allowances shall be paid for a term not exceeding three years, as a fixed dollar sum, and will not vary with movements in base salary.

1.2 Market allowance is a temporary allowance, which attracts superannuation at the current superannuation guarantee rate.

1.3 Market allowances are to be reviewed having regard for movements in the specific markets and may accordingly be increased, decreased or ceased.

1.4 The recommendation for, and amount of market allowance, must be considered in conjunction with other allowances or benefits the employee is receiving.

1.5 When an employee successfully applies for promotion through normal procedures resulting in an increase in base salary, the allowance will be reviewed to determine if the allowance or level of the allowance is appropriate in the context of the new position. The allowance may be absorbed or reduced at this time.

2 Eligibility

2.1 Deans (or equivalents) may receive applications or apply in relation to current employees where it can be demonstrated that market conditions have altered during the course of the appointment. Supporting evidence of market rates should be included.

2.2 While the allowance is determined by market conditions, the Dean in his/her assessment of the application should consider any performance or conduct issues raised.

3 Application Process

3.1 Written requests for market allowances should include a detailed justification for the remuneration and be forwarded to the Dean by the Head of School/Section or supervisor.

3.2 Deans (or equivalent) will be responsible for -

formally assessing applications;

Where the amount of the Market Allowance is below $10,000 approval may be granted by the Dean or equivalent.

Where the amount of the Market Allowance is $10,000 or more, the application will be assessed by the Dean before sending to Human Resources, who will submit the application to the Standing Remuneration Committee for approval.

  • forwarding all applications to Human Resources with the accompanying Discretionary Allowances Form; and
  • advising all candidates of the outcome of the application (only after the final approval).

Procedure

The Discretionary Allowances Form is to be forwarded to HR Services -Employment detailing: -

- the demonstrated need for payment of a market allowance,

the extent of any competitive market salaries or allowances offered by other

organisations and universities,

- the extent to which all employees are given equal consideration for rewards

and recognition in the business unit and having regard to achievement

relative to opportunity, and

- the amount and term (not to exceed three years) of the proposed market

allowance.

Any application for allowance to a new appointee should also include a copy of their CV and the Selection Report.

4 Term of Allowance

4.1 Market allowances may be recommended for a period of up to three years.

4.2 A market allowance will cease at the end of its term. Any subsequent application will be subject to the terms of any market allowance policy in force at that particular time.

5 Unsuccessful Applications

5.1 In instances where the Director, Human Resources does not concur with a Dean's recommendation, the Dean (or equivalent) shall be notified in writing.

5.2 If an applicant disagrees with a Dean's unfavourable assessment, a request for review (in writing) can be forwarded to the Standing Remuneration Committee, through the Director, Human Resources.

5.3 The Dean (or equivalent) may request a review of the decision by the Standing Remuneration Committee, through the Director, Human Resources.

Related forms:

Discretionary Allowances Form

TRIM File No:

F20362

Contact position:

HR Services-Employment

Related Policies or legislation:

Professional Development and Appraisal - Policy and Procedures

Overview of Discretionary Allowances

University Policies on:

Discretionary Allowances

Attraction Allowance

Retention Allowance

Performance Allowance

Bonus Payment

UWA Code of Ethics and a Code of Conduct

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