I have recently approved new arrangements for the renewal of the contracts of CES and SES officers in certain circumstances.

The attached guidelines provide for the renewal of a CES or SES contract based on a rigorous performance review, and in circumstances where the duties of the position have remained largely unchanged for the duration of the previous contract.

Where the performance of a CES or SES Officer is of a high standard, the agency and its clients will have the benefit of a smooth and seamless transition from the previous contract to a new contract. The implementation of the new arrangements will also reduce some of the considerable direct and indirect costs associated with advertising CES and SES positions.

The guidelines include a requirement for review of the performance of CES or SES Officers at least six months prior to the end of the contract period. A performance review should be conducted as soon as possible upon receipt of this Memorandum for officers whose contracts expire within the next six months.

The attached guidelines replace Premier's Memoranda 93/33 and 94/15, and Premier's Department Circular 94/15.

Any enquiries on this matter should be referred to the Strategic Policy and Reform Division, Public Sector Management Office, Premier's Department.

Bob Carr
Premier.

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Supersedes M93-33 and M94-15, C94-15. Superseded by M2000-24

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GUIDELINES FOR NEW ARRANGEMENTS FOR THE RENEWAL OF CES AND SES CONTRACTS

INTRODUCTION

Renewal of CES/SES Contracts  The decision to renew a CES or SES contract is made by a Minister (in respect of a CES contract) or a CEO (in the case of an SES contract). The decision to renew is to be:

• based on a rigorous performance review, where the performance of a CES or SES Officer is of a high standard; and
• in circumstances where the duties of the position are largely unchanged for the duration of the previous contract. 

Renewal Process It is essential that every renewal process be rigorous and transparent.

The procedures which agencies establish should be clear and well documented and should reflect the principles of merit, probity and equity. This process should be conducted by a well informed review panel (see later paragraphs).
 
Position to be Largely Unchanged Where the role and responsibilities of a CES or SES position remain largely unchanged, multiple renewals of contract are permitted provided a performance review process is employed for each renewal

If there is a substantial change in the role and responsibilities of the position, advertisement action must be taken in the usual way.
 
No Limit to Number of Renewals No limit is placed on the number of times a contract may be renewed, provided the arrangements set out above are met, although serious consideration should be given to periodic market testing.

OPERATION OF THE REVIEW PANEL

Establishment and Membership of the Review Panel  A review panel needs to be established on each occasion that consideration is being given to a renewal of a CES or SES contract.

The membership of the review panel should be representative and include at least one male and one female member. The independent member of the panel should be external to the agency and knowledgeable about the agency's role, objectives and customer expectations, supportive of diversity in the workplace and should possess the expertise to make sound and independent judgments.
 
Arrangements for CES Contracts The composition of the panel is the responsibility of the Director-General, Premier's Department in consultation with the relevant Minister.

The panel should consist of the Minister (or a nominee of the Minister), the Director-General of Premier's Department (or a nominee of the Director-General), an independent drawn from a relevant agency or industry sector or, in the case of Government Trading Enterprises, the Chairperson of the Board.
 
Arrangements for SES Contracts The composition of the panel is the responsibility of the CEO.

The panel should consist of the CEO (or a nominee of the CEO), the immediate manager of the SES officer (or a nominee of the immediate manager), and an independent drawn from a relevant agency or industry sector; or in the case of Government Trading Enterprises, a member of the Board.
 
THE REVIEW PROCESS

Timing of Performance Review and Operation of Review Panel A performance review is to be conducted in the case of all CES and SES officers at least six months prior to the end of the current contract period. The review panel is to be established to consider:

• the performance to date of the CES or SES officer as indicated in performance agreements and annual performance reviews;
• the ongoing organisational need for and requirements of the position, including an assessment of whether the position is largely the same.

Preliminary Advice to the CES or SES Officer The CES or SES officer is to be given sufficient notice of the review so that he/she may prepare all necessary evidence of performance and supporting documentation which is to be provided to the review panel.

Performance Criteria Documentation, setting out the results and discussions of performance agreements and annual performance reviews for the current period of appointment, is to be provided to the review panel. Where matters require clarification, an option open to the panel is to request further information or to meet with the CES or SES officer.

Deliberations and Recommendations by the Review Panel The review panel may call for submissions from any party it determines to be fit to provide an opinion on the CES or SES officer's performance. The CES or SES officer is to be provided with an opportunity to examine and comment upon any submission made to the review panel.
The review panel is not required to meet with or interview the officer unless the panel decides this is necessary.

The deliberations and decision of the review panel should be documented, with information on the panel membership and where and when it met. Sufficient detail will need to be retained to ensure that the decision is capable of withstanding independent scrutiny.

As a result of its deliberations, the review panel may recommend either to renew the contract where the performance of a CES or SES Officer is of a high standard, or to advertise the position.

In the case of the CES contract the recommendation is made to the relevant Minister, and for SES contracts the recommendation is made to the CEO of the agency.
 
Advice to CES or SES Officers of Decision The decision from the review should be conveyed to the CES or SES officer in a timely manner to permit any subsequent action to occur.

Should the review recommend advertising, this should be initiated in time to allow a smooth transition to any new appointment. This would also permit the officer sufficient time to consider alternative employment or to exercise any other options they may have.