Policies and procedures

Policy No.
Human Resources
Authoring Organisational Unit
Human Resources - Central Unit
Date Approved
25/06/2012 Revised 25/09/2014
Next Review Date
Approving Body
Senior Deputy Vice-Chancellor And Registrar

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The University of Western Australia

University Policy on: Retention Allowance

Purpose of the policy and summary of issues it addresses:

This policy defines the nature and purpose of the Retention Allowance. It sets out eligibility criteria and other conditions that apply.

The purpose of this policy is to address situations when an employee has been offered a position with another organisation.

This policy does not apply to casuals.


"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 retention 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 retention allowance may be made where an employee has been offered a position with another organisation, and the University wishes to make a counter offer to retain the employee.

1.1 A Retention allowance will be paid as a fixed dollar sum.

1.2 A Retention allowance is an ongoing allowance, which attracts superannuation at the employee's current rate.

1.3 When an employee successfully applies for promotion or reclassification 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 A retention allowance may be negotiated when the employee receives a verified offer of employment from another organisation.

3 Application Process

3.1 Written requests for attraction allowances should include a detailed justification for the remuneration and be forwarded to the Dean (or equivalent) 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 Retention Allowance is up to and including $10,000, approval may be granted by the Dean or equivalent.

Where the amount of the Retention Allowance is greater than $10,000, 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).

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

- the circumstances of the job offer to the employee,

the value or need for the University to retain the employee,

- 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 of the proposed retention allowance.

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

4 Unsuccessful Applications

4.1 In instances where the Standing Remuneration Committee does not concur with a Dean's recommendation, the Dean (or equivalent) shall be notified in writing.

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

Related forms:

Discretionary Allowances Form

TRIM File No:


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

Market Allowance

Attraction Allowance

Performance Allowance

Bonus Payment

UWA Code of Ethics and a Code of Conduct

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