Context
Under section 25 of the PAA, a contract of employment must be in writing and be signed by or on behalf of the employer and the executive.
The standard contract consists of:
- the body, which includes the standard terms and conditions which apply to all VPS executives
- four schedules, which are tailored to an executive’s role and employment, including:
- Schedule A: the position, duties and workplace location
- Schedule B: the remuneration package
- Schedule C: superannuation
- Schedule D: detailed leave provisions
The terms and conditions in the body of the contract reflect existing Victorian Government policy and should be used as drafted.
About the contract
Entire agreement
The contract constitutes the entire agreement between the parties. This Handbook does not create any additional legal rights or obligations. The contract prevails to the extent of any inconsistencies.
The contract is signed by the employer and executive. Only an individual can enter into an employment contract. An executive cannot be paid via a private company.
Variations
The contract may be varied at any time upon written agreement between the executive and employer. Variations may be made to reflect minor to moderate changes to an existing role’s duties and responsibilities, or the executive’s remuneration or other entitlements.
In the event of more significant changes, parties may instead agree to enter into a new contract.
For any material variations to the core terms and conditions of the contract (including changes to the termination provisions), the employer must first consult with DPC for guidance.
Contract length
The term length of an executive contract is limited to five years under section 25(3) of the PAA.
Parties may renew or extend the contract. Although there is no limit on the number of extensions, each total contract length must not exceed 5 years.
Renewals
The renewal of a contract should be decided before the existing contract expires.
Under clause 14 of the contract, an executive should be consulted at least 6 months before expiry (or 3 months if the contract length is one year or less), and the renewal decision must be made no later than 4 months before expiry (2 months if the contract length is one year or less). While the contract does not make these requirements mandatory, it is expected that employers will have processes in place to ensure these timeframes are met. They should only be departed from in exceptional circumstances.
There is no limit to the number of times an employer and an executive can renew a contract.
There is no probation period under the contract.
Interaction with the Fair Work Act 2009
The Fair Work (Commonwealth Powers) Act 2009 (Vic) excludes VPS executives and persons “employed at higher managerial levels in the public sector” from the referral of industrial relations powers to the Commonwealth. The Commonwealth does not have the power to make laws with respect to the employment of this cohort, which may include public entity executives, and they are generally not subject to requirements under the Fair Work Act 2009 (FW Act).
To encourage mobility between executive and non-executive roles, many of the terms and conditions which apply to non-executive public entity employees by virtue of their coverage under the FW Act should be applied to executives under the contract.
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