obligation failures, disputes and recompliance

We must consider a young person's reasons for not meeting their obligations before initiating an obligation failure to ensure we are complying with the law.

applying an obligation failure

An obligation failure must only be initiated when a young person or their partner fails to comply with their Youth Activity Obligations, without a good and sufficient reason.

Good and sufficient reason before initiating an obligations failure

You must check the young person's ART profile to be confident that the young person was advised of what they were required to do and confirm if they had any reasons for not meeting a specific obligation.

If you are unable to determine if the young person had a good and sufficient reason from the information recorded in their ART profile, you must attempt to contact the young person to discuss their circumstances before recommending an obligation failure.

advising the young person of an obligation failure

We are required to give the young person written notice of the decision to apply an obligation failure.

When MSD initiate an obligation failure the young person will receive a system-generated letter advising them that they have failed their obligations.

In some cases, MSD must send a physical letter to the young person advising them that their payments are affected and what that means for them.

when a young person disputes an obligation failure

Young people can lodge a dispute if an obligation failure has been actioned and they have a good and sufficient reason for failing their obligations.

YSSU must consider any new information provided by the young person or partner, and let them know of their decision straight away if the dispute has been:

  • Upheld – when you believe the decision to impose the obligation failure was correct
  • Withdrawn – if the young person recompiled before the sanction was imposed or the young person withdrew their dispute
  • Overturned – when you believe that the young person or partner had a good and sufficient reason or that they did not fail their obligations.

YSSU will record the outcome of the young person or partner's dispute in ART.  A letter will then sent automatically to the young person or partner once a decision has been recorded.

recomplying after an obligation failure

When a young person or partner indicates they want to recomply with their obligations they must complete an activity that is the same as, or substantially similar to the activity that they failed.

For young people to recomply a grade 3 work obligation failure and be granted a provisional benefit, the young person or partner must complete a six-week recompliance activity or programme of activities (13-week non-entitlement period) or wait until the end of the 13-week non-entitlement period.

The difference between overturning and recomplying with an obligation failure

Overturning an obligation failure occurs when a young person either did not fail their obligations or had a good and sufficient reason for not meeting their obligations.

When the action is completed it will:

  • remove the failure from the young person's 12-month obligation count
  • resume or increase the benefit from the date it was suspended or reduced (in some cases a backdated review may be required).

Recomplying with an obligation occurs when a young person agrees with the obligation failure and completes a recompliance activity. 

When the recompliance is complete it will:

  • resume or increase the benefit from the date that the young person started their recompliance activity:
    • in the case of a one-off activity the benefit should be resumed from the date the young person attended and participated in the activity.

deactivating an obligation failure

In some cases, we can deactivate an obligation failure and remove a sanction if the young person is unable to recomply with an obligation failure. This may happen if the young person has a change in their situation which would mean that they are no longer subject to an obligation or because the recompliance activity is no longer suitable. In these situations, you must advise the young person that the failure is still included in their obligation failure count.

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