Fixed term contracts of employment – executive employees (Directive 04/26)

1. Purpose

1. This directive sets out requirements and administrative arrangements for employment of a public service officer on a fixed term contract, where the remuneration is equal to, or higher than, that payable to a senior officer (SO). This directive does not apply to senior executives employed under chapter 5, part 3 of the Public Sector Act 2022 (the Act).

2. Commencement

2. This directive commences on 1 July 2026.
3. Public Sector Commissioner (Commissioner) Directive 11/23: Fixed term contracts of employment – executive employees is repealed and superseded by this directive.

3. Authorising provisions

3. Section 222 of the Act.

4. Application

4. This directive applies to:
   1. public service officers employed under section 152 of the Act on a contract for a fixed term made under section 155
   2. chief executives of public service entities as provided for in sections 16 and 17 of the Act, in their capacity as a chief executive of a public service entity or of public service employees.

5. Principles

5. Chapter 4, part 3 (Employment of public service officers) of the Act contains arrangements for the employment of public service officers on fixed term contracts. Consistent with section 152 of the Act, the chief executive of a public service entity may decide that employment in a position may be for a fixed term.
6. Chief executives are required to act in a way that is compatible with the main purpose of the Act including by:
   1. providing for the key rights, obligations and employment arrangements of public sector employees
   2. treating public sector employees fairly
   3. taking steps to promote equity, diversity, respect and inclusion in employment, including for diversity target groups.
7. Under the Human Rights Act 2019 decision makers must:
   1. act and make decisions in a way that is compatible with human rights
   2. give proper consideration to human rights when making a decision under the Act and Public Sector Commissioner (Commissioner) directives.
8. In addition to any specific requirements in this directive, chief executives have a duty to:
   1. promote equity and diversity in relation to employment matters under chapter 2 (Equity, diversity, respect and inclusion) and chapter 3 (Public sector arrangements) of the Act
   2. support the State government in reframing its relationship with Aboriginal peoples and Torres Strait Islander peoples by fulfilling certain responsibilities under chapter 1, part 3 (Reframing of State’s relationship with Aboriginal peoples and Torres Strait Islander peoples) of the Act.

6. Interpretation of directions

6. The requirements set out in these directions are binding and must be followed, in addition to the Act and the employment contract.
7. These directions:
   1. are to be used when a chief executive is considering creating a position where the basis of employment will be on contract for a fixed term
   2. are to be used when a chief executive enters into a written contract with the public service officer, as required under section 155(2) of the Act
   3. provide for matters related to the overall employment conditions of the contract under section 155(5) of the Act
   4. should be read in conjunction with the authorising provision and other relevant provisions of the Act.
8. For guidance on application of the high-level senior executive remuneration rates (HLSE remuneration rates), refer to the directive on employment conditions for the Senior Executive Service and any Public Sector Commission guidance on senior executive service profile management published on the Forgov website.

7. Use of fixed term contracts

7. The employment of officers on a fixed term contract must comply with the directive relating to recruitment and selection.
8. Fixed term contracts are to be for a period appropriate to the special circumstances of the employment situation. A fixed term contract must not:
   1. be used for continuing and ongoing roles that should be within the Senior Executive Service (SES)
   2. exceed a term of five years
   3. be extended through a variation to the expiry date.
9. A chief executive of a public service entity must consult with the Commissioner about the proposed recruitment and selection strategy before advertising a fixed term contract role that is to be for more than six months and remunerated at or above the senior executive classification.
10. The use of fixed term contracts under a scheme, initiative or employment strategy that is not covered by another directive must be approved by the Commissioner.
11. If a fixed term contract expires, a chief executive may enter into a new contract (i.e. not an extension to the original contract) with the officer for the same role, without requiring the Commissioner’s approval, provided the cumulative term of all contracts with the officer do not exceed five years.

8. Remuneration

8. Remuneration and employment conditions must be documented, transparent and justifiable.
9. Before deciding to engage an officer on a fixed term contract, the chief executive must ensure that a job evaluation, benchmarking process or job market assessment is used to determine the appropriate remuneration level for the position.
10. Subject to exceptions in this clause and clause 10, remuneration and pay-point or package point increases for officers employed on fixed term contracts must not exceed increases for officers remunerated at a level equal to, or within, the remuneration ranges applying to:
    1. SO and SES – as published on the Forgov website from time to time and as set out in the directives relating to SO and SES employment conditions
    2. chief executives – as published on the Forgov website from time to time.
11. If a role is assessed as being equivalent to an SES role, SES remuneration rates apply unless the Commissioner approves otherwise.
12. In exceptional circumstances where the scope, scale and complexity of a role requires a higher level of expertise, leadership and accountability, the Commissioner may approve the application of the High-Level Senior Executive (HLSE) remuneration rates to a role assessed as equivalent to an SES role.
13. Subject to clause 8.7, where total remuneration is within the remuneration ranges applying to the SES, the officer must be paid at the minimum package point of the work value range (WVR) for the role on initial employment, as applicable to SES under the directive relating to SES employment conditions.
14. A chief executive may employ an existing public service officer on a fixed term contract above the minimum package point within the WVR where this is required to maintain an existing package point for the public service officer.
15. A chief executive may decide not to increase an officer’s remuneration.

9. Christmas/New Year compulsory closure

9. Public service officers on a fixed term contract participating in the Christmas/New Year compulsory closure, including those on recreation leave or long service leave, are granted leave on full pay without debit to any leave account for those days during the compulsory closure period that are not public holidays or weekend days (granted leave days). Officers on any other form of leave do not qualify for the granted leave days.
10. Where an officer is on approved recreation or long service leave on any of the granted leave days, the officer’s relevant leave balance is to be adjusted to reflect the granted leave days instead of the recreation or long service leave.
11. A chief executive may, in exceptional circumstances, determine that individual officers do not qualify for the granted leave days. Where a chief executive makes such a determination, but that officer is not required for duty, the officer is required to apply for leave.

10. Approval for exemption

10. Chief executives seeking to enter into any arrangements outside the provisions of this directive must seek the Commissioner’s approval before doing so, for example:
    1. the use of a fixed term contract for a continuing and ongoing role under clause 7.2(a)
    2. the maximum term or cumulative term of contracts under clauses 7.2(b) and 7.5
    3. a remuneration increase at a higher level than that permitted under clause 8.3
    4. remuneration above that permitted under clause 8.6
    5. any variations to the standard contract approved by the Commissioner under clause 11.1
    6. in exceptional circumstances, all or part of this directive.

11. Governance – Administrative arrangements and standard contract

11. The Commissioner will determine any administrative arrangements required when a fixed term contract is being considered, including the standard contract(s) to be used.
12. Chief executives must report to the Commissioner, in a form required by the Commissioner, on the number and details of fixed term contracts approved or ended in their public service entities, within a timeframe stipulated by the Commissioner.

12. Transitional provisions

12. Existing contracts are not altered by the repeal of Directive 11/23 and its replacement with this directive.

Unless otherwise provided, the terms in this directive have the meaning prescribed in the Act.

Chief executive in the context of exercising a decision-making power, includes a person to whom the chief executive has delegated the decision-making power under section 282 of the Act.

Public service entity has the meaning provided in section 9 of the Act.

Public service officer has the meaning provided in section 14 of the Act.

Senior executive means a person employed under section 188 of the Act.

Senior officer means a person employed as a senior officer under section 152 of the Act.