22-27 Discussion paper – Employment of senior managers

New or modified

  • In response to the findings and recommendations of the Independent Commission Against Corruption arising from its investigation into the former Canterbury City Council (Operation Dasha), the parties to the Local Government Award (State) (the Award), asked the Government to amend the Local Government Act 1993 (the Act) to remove the ability of boards to identify positions in their organizational structure as “executive positions”.
  • The Office of Local Government (OLG) has released a discussion paper to seek input from the broader local government sector on the changes requested by the parties to the award. These comments will serve to inform the government’s position on this issue.
  • The discussion paper is available on OLG’s website here.

What this will mean for your council

  • Counsel are invited to make submissions indicating whether they would support enactment of the legislative changes requested by the parties to the award set out in the discussion paper.
  • Submissions can be made by email to [email protected]
  • Submissions should be labeled “Executive Employment” and marked for the attention of the OLG Board Governance Team.
  • Submissions must be made by COB November 15, 2022.

Key points

  • Under the current provisions of the law, holders of positions determined by the councils to be “senior management positions” must be employed on the basis of standard contracts with a duration of between 1 and 5 years.
  • A board may only determine a position to be an executive position if the position’s responsibilities, skills and accountability are generally equivalent to those applicable to the executive price band (executive-level employees) and the total compensation is equal to or greater than the minimum compensation due for senior executives whose positions are classified in Band 1 under the Public Sector Employment Act 2013.
  • Under the model proposed by the parties to the award, only the CEO would be employed under a standard contract and all other board staff, including senior executives, would be employed under the award.

Where to go for more information

  • The discussion paper is available on OLG’s website here.
  • For more information, please contact OLG’s Board Governance Team on 02 4428 4100 or email [email protected]

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