Make a Redundancy Claim

There are two sorts of payments that employees who are unemployed can apply for through Incolink:

1. An amount not exceeding the maximum initial benefit as prescribed in the Trust Deeds and as adjusted on 1 October each year (currently $4,496.00 for period 1 October 2009 to 30 September 2010) or the balance of their account if the amount held is less than the maximum initial benefit.
2. The remaining balance in the form of a lump sum payment.
   

Initial Benefit

Employees can apply for their initial benefit by completing an ‘Initial Claim Form’ and forwarding it to Incolink via fax, mail or delivering it to Incolink’s office. Confirmation of termination will only be accepted in the form of one of the following:

• Completion of the employer section of the claim form by an authorised officer of the company and bearing the company seal or company stamp
• A Separation Certificate completed and signed by an authorised officer of the employer and bearing the company seal or company stamp 
• A letter from the employer on company letterhead, signed by an authorised officer of the employer, confirming the employee's termination and the date terminated.

  Download the Initial Claim Form

Remaining Balance

The employee can apply to withdraw the remaining balance of money left in their account after the initial benefit has been paid subject to the completion of a Redundancy Benefits Claim Form and provided one of the following criteria is met:

• The employee has been unemployed for four weeks and registered with Centrelink or Incolink’s Training Employment and Careers Unit as looking for work, or they have completed and have executed the Statutory Declaration which is included in the claim form.
• They are unemployed or have not worked in the industry for 39 weeks;
• They are retiring and are over 55 years of age; or
• They are unemployed and leaving Australia for more than two years (they will need to provide a certified copy of their passport and airline tickets as proof).

   Download the Redundancy Benefits Claim Form

Apprentice Claims

Apprentices or former apprentices can claim their apprentice days as redundancy in the following situations:

• If an apprentice completes their apprenticeship and then completes 52 weeks in the commercial building industry and their employer/s have paid 52 weeks redundancy contributions into Incolink during that period.
• If an apprentice has not finished his apprenticeship and is laid off due to a lack of work and there is no arrangement with their employer to reemploy them. If the apprentice/employee ceases work voluntarily or due to any other reason they will not be eligible to claim their apprentice credits
• If an apprentice completes their apprenticeship and is laid off due to a lack of work within the next 52 weeks and there is no arrangement with the employer to reemploy them. If the apprentice/employee ceases work voluntarily or due to any other reason they will not be eligible to claim their apprentice credits.

The apprentice/employee is required to complete the appropriate claim form and provide the necessary supporting paperwork to be eligible to claim these days. The employer is also required to complete and execute an ‘Application for Payment of Apprentice Credits’ form which needs to be lodged with the claim form.

  Download Apprentice Credits Application

Authorised Officers

The following people are authorised to sign documents related to claims on behalf of the employer:

• A current director of the company
• A partner in the business
• An authorised contact for the company as previously advised in writing to Incolink.
  

Tax on Benefits

When processing the claim, Incolink will deduct tax at the current rate determined by the Australian Tax Office. It is not against the law for employee members not to provide Incolink with their Tax File Number although if they do not provide their TFN, tax will be deducted at the withholding tax rate.

When Incolink sends payment of the claim a Statement of Termination Payment will also be sent for the employee to keep and use when they do their annual tax returns. 

Please Note: Funds paid out by Incolink are not considered by the Australian Tax Office to be part of bonafide redundancy payment and therefore under no circumstances can Incolink provide any preferential tax treatment to payments.