Public entity executives

Summary

• the standard public entity executive employment contract should be used as a model contract in employment.
• public entity executives are public sector employees under the PAA and must comply with the Public Sector Values and the relevant Code of conduct under the PAA, including related internal policies
• public entity executives are classified into bands according to their work value under a standard framework.

Who are public entity executives?

The two primary cohorts of executives employed in the Victorian public sector are:

• public entity executives - employed under their entity’s establishing legislation. Their employment framework is the Public Entity Executive Remuneration (PEER) Policy.
• VPS executives - VPS executives are senior public officials employed by public bodies exercising VPS employment powers (i.e. under, or with reference to Part 3 of the PAA). They are employed in departments, administrative offices, the VPSC and other public bodies. The heads of these bodies may also be VPS executives. A reference to executive in this Handbook includes this cohort.

If there is uncertainty, the VPSC’s website lists public sector bodies by their employment type.

Values and conduct

Public entity executives, like all public sector employees, should demonstrate and promote the public sector values (values) and comply with the relevant Code of conduct (Codes).

Further information on the values and Codes, including supporting guidance, is available on the VPSC’s website.

Public sector values

Public entity executives should familiarise themselves and act in accordance with the following values, which are listed in section 7 of the PAA:

The values underpin the behaviours expected of all public sector employees.

As senior leaders, executives are responsible for making significant decisions, managing budgets and overseeing critical functions of government. Executives play a key role in setting culture across their organisation. An executive’s conduct directly influences workplace standards, expectations and the broader public sector reputation.

Codes of conduct

The VPSC has issued the following Codes of conduct:

• Code of conduct for Victorian public sector employees
• Code of conduct for Victorian public sector employees of special bodies
• Code of conduct for directors of Victorian public entities
• The Victorian Government Professional Lobbyist Code of Conduct, which includes obligations applying to executives when interacting with lobbyists (see also the post-employment obligations section).

Executives should review the relevant Codes to ensure they are aware of their obligations. The relevant Code binds executives and any contravention may constitute misconduct under the contract and may result in disciplinary action.

Public sector body heads

Public sector body heads, who are themselves executives, will have additional obligations under the PAA such as promoting the values to their employees and promoting an organisation-level statement of values.

Public sector body heads are responsible for establishing employment processes which adhere to the public sector employment principles under section 8 of the PAA. They must also ensure to inform employees about the application of those principles and standards issued by the VPSC.

Employment principles and standards

Public sector employers must make sure their hiring and employment practices follow the public sector employment principles and any mandatory standards issued by the VPSC. These principles and standards help create fair, respectful and inclusive workplaces across the public sector.

They set clear expectations for how employees should be treated—ensuring fairness, equal opportunity, and support for career development. They also help build a positive work environment where staff feel safe to raise concerns and are supported to grow professionally. These principles are outlined in section 8 of the PAA and include:

• employment decisions are based on merit; and
• public sector employees are treated fairly and reasonably; and
• equal employment opportunity is provided; and
• human rights as set out in the Charter of Human Rights and Responsibilities are upheld; and
• public sector employees have a reasonable avenue of redress against unfair or unreasonable treatment; and
• in the case of public service bodies, the development of a career public service is fostered.

The VPSC has issued binding standards on the application of the employment principles. They identify the essential concepts that must be incorporated in an organisation’s employment processes to ensure that the employment principles apply at work.

Integrity

Public entity executives are required to disclose any conflicts of interest upon and during employment, and to comply with integrity policies set by government. The standard contract emphasises that executives comply with all legal requirements, statutory or otherwise, pertaining to responsibilities as an executive. This includes applicable standards, Codes and policies, as may be in place and apply from time to time.

Disciplinary action consistent with the relevant industrial instrument and legislation, including dismissal, may be taken where an employee fails to adhere to integrity policies.

Conflicts of interest

In line with the Codes, when executives are performing public duties, private interests must not influence decisions, nor allow a perception that they have influenced decisions. Personal interests can change over time as personal circumstances change. Conflicts of interest must be continually declared and managed, or avoided.

Executives must disclose their interests and take reasonable steps to identify and manage a conflict, or a perceived conflict, of interest. All executives are required to complete a Declaration and Management of Private Interests Form upon appointment (prior to their contract being entered into) and annually after appointment or within five working days after a change in circumstances (i.e. to any part of information that an executive has previously disclosed in their form, for example, change of residence). Conflicts of interest should be declared using the organisation’s Declaration and Management of Private Interests Form.

Gifts, benefits and hospitality

Executives must identify, declare and manage a conflict of interest which may arise related to gifts, benefits and hospitality.

The VPSC has issued a Gifts, Benefits and Hospitality Policy Guide and minimum accountabilities for public sector employees.

Classification

All public entity executive roles must be classified in line with the VPSC’s Public entity executive classification framework (PEECF). The PEECF sets out the work value methodology for assessing and classifying executive positions into bands, using tailored work value assessments. This is essential to ensure that executive roles are classified objectively and consistently.

The last row shows the remuneration band that applies to Chief Executive Officers (or similar positions) whose positions have been assessed using the PEECF and do not meet the minimum work value score required for their classification to be determined (21 points).

The classification bands are:

• Public Entity Senior Executive Service Band 1
• Public Entity Senior Executive Service Band 2
• Public Entity Senior Executive Service Band 3
• Chief executive officer with a work value score below 21 points

Ways of working

The contract requires executives to work the hours necessary to perform their duties and responsibilities. This may require working additional hours, including on weekends and public holidays. An executive’s remuneration recognises this. See the section on Hours and place of work.

As a matter of best practice, employers should support and encourage work-life balance.

Executives may enter into flexible working arrangements, including hybrid working, flexible start and finish times, working part-time, job sharing, etc. Executives can negotiate with their employer their working hours to fit with their other commitments, balanced against the business needs and demands of the role.

Processes will differ from organisation to organisation, but the goal should be to reach an outcome in which an individual’s needs for flexibility are met, consistent with business requirements, industrial instruments and legislative requirements.

Capability development

There is an expectation that public sector employees will continue to learn, develop and grow in their role. This expectation is emphasised for executives, recognising the critical impact of senior leaders on culture and performance. This may be embedded in an executive’s performance plan.

Each employer will have their own approach to leadership development and executives should contact their employer or human resources unit directly.

Support programs available

Executives can access support programs through the Employee Assistance Program (EAP). The EAP is a personal coaching and counselling service that offers confidential, short-term support for a variety of work-related and personal issues that may be affecting an executive at work or at home.

A qualified advisor from the EAP can talk with the executive or a member of the executive’s immediate family over the phone or arrange a face-to-face consultation.

Safe and respectful ways of working

Employers must take proactive steps to provide an inclusive, safe and respectful workplace culture, and have a zero-tolerance approach with respect to sexual harassment.

Executives must adhere to all relevant legislative requirements and obligations in their conduct and decision-making, including:

• Equal Opportunity Act 2010 – the employer has a positive duty to take reasonable and proportionate measures to eliminate discrimination, sexual harassment, and victimisation, as far as possible.
• Gender Equality Act 2020 – requires public sector bodies to take positive action towards workplace gender equality, including preparing Gender Equality Action Plans and reporting progress.
• Charter of Human Rights and Responsibilities Act 2006 – outlines civil, political and cultural rights that must be respected and upheld in public sector decision-making.