The attached Guidelines detail the process of reappointment for CES and SES officers based on a rigorous performance review and where the duties of the position have remained largely unchanged for the duration of the previous appointment. The Guidelines include the requirement for a review of the performance of the CES or SES Officers at least six months prior to the expiration date of the appointment. The actual timing of the review should consider the role of the position and the environment in which the position and agency operates. This assessment may lead to the view that the review should be undertaken sooner. If this is the case care should be taken to ensure that the requirements of these Guidelines or any legislation are adhered to. A review panel conducts the review and then makes a recommendation to the Minister (in the case of CES), or to the CEO (in the case of SES), who then makes the decision to reappoint or to undertake recruitment action. If the officer is to be re-appointed the new appointment term must commence immediately upon the expiration of the current appointment, that is, there should be no “overlap” of the term. CES and SES officers are usually appointed by Section 10A and Section 13 of the Public Sector Management Act 1988, respectively. In some cases other legislation provides the authority to appoint. Section 42G of the Public Sector Management Act 1988 provides for the contract of employment. The contract details the performance criteria and forms the basis of that individual's performance agreement, mandatory duties and responsibilities and the details of the remuneration package. It is important to note that a contract term does not affect the term of appointment [Section 42G(3) of the Act]. This Premier's Memorandum and attached Guidelines supersedes Premier's Memorandum 98-18 New Arrangements for the Renewal of CES and SES Contracts. Any enquiries on this matter should be directed to the Public Sector Management Office, Premier's Department. Bob Carr Premier. ------------------------------------------------------------------------------------------------GUIDELINES FOR REAPPOINTMENT TO CES AND SES POSITIONS INTRODUCTION Review Process Prior to the expiration of the term of appointment of incumbent CES or SES a review will be undertaken. The review will assess the performance of the incumbent, position requirements and the relative merit of the person. Exemption from advertising Section 31(2) of the Public Sector Management Act 1988 requires that vacant SES positions be advertised prior to any appointment. CES positions are exempt from this requirement by Section 22(1) of the Act. The Director General, Premier's Department, in his capacity of Commissioner of Public Employment, has approved that any SES re-appointment made in accordance with these Guidelines is exempt from the need to advertise, pursuant to section 31(2) of the Act. The CEO, however, must ensure that the review process satisfies the requirements of Section 26(3) of the Act. Reappointment to positions The decision to reappoint is made by a Minister (in respect of a CES appointment) or a CEO (in the case of a SES appointment). The decision can only be taken following the deliberations of the review panel. The decision to reappoint is to be:based on a rigorous performance review and where the performance of the incumbent CES or SES is of a high standard; in circumstances where the current duties of the position are largely unchanged from those of the previous appointment term, and in the case of the SES, where the incumbent is the most meritorious officer in the agency for the position. Reappointment Process  It is essential that every reappointment 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). The Minister or CEO may choose to “test the market”. If this action is to be taken it is essential that this be communicated to the officer before the action is taken in time to permit the officer sufficient time to apply for the position, consider alternative employment or to exercise any other options they may have. Position to be Largely Unchanged Where the role and responsibilities of a CES or SES position remain largely unchanged, multiple appointments are permitted provided a review process is employed for each reappointment. 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 Reappointments No limit is placed on the number of times a CEO or SES officer may be reappointed, provided the arrangements set out in these Guidelines 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 should be established prior to the expiration of the term of a CES or SES appointment. The membership of the review panel should be representative and include at least one male and one female panel 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 Appointments 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 Appointments 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 Review and Operation of Review Panel A review should be conducted at least six months prior to the end of the current appointment period. The actual timing of the review should consider the role of the position and the environment in which the position and agency operates. This assessment may lead to the view that the review should be undertaken sooner, however, if this is the case care should be taken to ensure the requirements of these Guidelines or any legislation are adhered to. 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, and in the case of a SES position, the merit of the SES officer compared to other officers in the agency. 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.Merit In the case of the review of a SES appointment the relative merit of other eligible officers must be considered. The CEO must select the officer who, in the opinion of the CEO, has the greatest merit. Submissions 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 by the officer. Where matters require clarification, it is open to the panel to request further information or to meet with the CES or SES officer concerned. Officers should also submit a copy of their current resume. The review panel may also call for submissions from any party it determines to be fit to provide an opinion on the CES or SES officer's performance. In the case of SES officers they should be provided with an opportunity to examine and comment upon any submission made to the review panel except information regarding other officers in the agency. The review panel is not required to meet with or interview any officer unless the panel decides this is necessary. Deliberations and Recommendations by the Review Panel 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 to either reappoint, or to “test the market” by undertaking recruitment action for the position. In the case of the CES appointment the recommendation is made to the relevant Minister, and for SES appointments 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 panel recommend recruitment action, 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 reapply for the position or to exercise any other options they may have. Appointment If the Minister or CEO decides to re-appoint the officer this action may be undertaken immediately. The new term of appointment, however, may not commence until the expiry of the current term. CES/SES Contracts Once a new appointment has been effected it is necessary to develop a new contract as prescribed under Section 42G of the Public Sector Management Act 1988 if this has not already been done. NB: Section 42G(2) enables the contract to be made before or after the appointment