3.11.7 Mutual obligation requirements for people with a partial capacity to work

Introduction

A job seeker who is assessed as having a partial capacity to work will have mutual obligation requirements which match their assessed capacity to work.

Job seekers will be assessed as having a partial capacity to work if both their baseline work capacity and work capacity within 2 years with intervention are less than 30 hours per week. This can be because of a physical, intellectual or psychiatric impairment.

A job seeker's mutual obligation requirements are based on their future assessed capacity with intervention. Job seekers are not required to immediately participate at the higher work capacity, however it is intended that a job seeker's capacity to participate would be built up gradually through participation in a suitable program of assistance or other appropriate employment service.

Note: When a job seeker's work capacity with intervention is less than their baseline work capacity due to a deteriorating condition, their mutual obligation requirements are based on their baseline work capacity.

A job seeker may also have a temporary medical condition and have a temporary reduced work capacity (TRWC), which is identified through an ESAt. Job seekers will have reduced requirements for the period of their TRWC. When setting appropriate requirements, the delegate must ensure that requirements and the level of participation take into account the job seeker's TRWC.

Partial capacity to work of 0 to 7 or 8 to 14 hours a week

A job seeker with an assessed capacity to work 0 to 7 or 8 to 14 hours a week can meet their mutual obligation requirements by attending a quarterly interview with Services Australia to discuss their participation and meeting the terms of their Job Plan. The job seeker can volunteer to accept a referral to a suitable program of assistance recommended by their ESAt/JCA, but cannot be penalised for not accepting a referral.

Partial capacity to work of 15 to 29 hours a week or principal carer parent

A job seeker with an assessed capacity to work of 15 to 29 hours per week can fully meet their mutual obligation requirements by undertaking 15 hours per week of paid work (including self-employment) or approved study (or a combination). If fully meeting their requirements, they cannot be required to simultaneously undertake any job search or meet any other additional requirements. If they are not fully meeting their requirements through sufficient participation in the above activities, they will be required to be connected with an employment services provider and to look for work which matches their capacity. Principal carer parents and those with a partial capacity to work cannot be penalised for refusing work of more than 15 hours per week.

Job seekers with a partial capacity to work fully meeting their requirements through the above activities, and whose activities are expected to last for at least 13 weeks, are not required to remain connected with employment services and may be exited. These job seekers will need to agree to a job plan with, and report their participation in their fully meeting activity to, Services Australia. However, they can choose to volunteer for employment services should they wish to do so (3.11.6).

They can also meet their requirements by engaging in a suitable program of assistance recommended by their ESAt/JCA. A job seeker may be required to accept a job of less than 15 hours a week providing the work is suitable and supplement this work with job search for suitable work of 15 hours a week. A job seeker working MORE than 15 hours a week may leave this job to accept an offer of paid work of 15 hours a week without penalty.

For job seekers assessed as having a partial capacity to work, the items recommended by the ESAt/JCA will be the most suitable for inclusion in their Job Plan.