Circulars

What’s new or changing

• The “departmental chief executive” has approved new standard contracts of employment for general managers of councils and executive officers of joint organisations under section 338 of the Local Government Act 1993 (the Act).
• The new standard contracts have been developed in consultation with the sector in response to recommendations arising from ICAC’s investigation of the former Canterbury City Council (Operation Dasha).
• New Guidelines for the Appointment and Oversight of General Managers have also been issued under section 23A of the Act to assist councils in the implementation of the new contracts.
• The Guidelines have been updated to reflect the new standard contracts and to implement ICAC’s recommendation that they include guidance that general managers’ performance agreements include performance indicators related to the promotion of an ethical culture. The Guidelines also contain guidance on the importance of good working relationships between councils and general managers.
• The changes are summarised in the attachment to this circular.

What this will mean for your council

• Under section 338 of the Act, general managers and executive officers must be employed under contracts with terms of between 12 months and 5 years based on the standard contracts approved by the departmental chief executive of OLG.
• When appointing a new general manager or executive officer or renewing their contract, councils and joint organisations must use the new approved standard contracts.
• The approval of the new standard contracts does not affect existing employment contracts general managers and executive officers are employed under. However, clause 19.2 of existing contracts allows them to be varied by agreement between the employee and the council or joint organisation to be consistent with the provisions of the new approved standard contracts.
• A separate review is being undertaken of employment arrangements under the Act for “senior staff”. Until the review is completed, councils should continue to use the existing approved standard contract of employment for senior staff.
• Under section 23A of the Act, councils and joint organisations must consider the updated Guidelines when exercising their functions in relation to the recruitment and oversight of general managers.

Where to go for further information

• The new standard contracts of employment for general managers and executive officers and the updated Guidelines are available here.
• Information about the amendments to the standard contracts is set out in the attachment to this circular.
• For further information please contact OLG’s Council Governance Team on (02) 4428 4100 or by email at olg@olg.nsw.gov.au.