PEO CIRCULAR NO. 95-59 RE-EMPLOYMENT OF FORMER EXECUTIVE OFFICERS WHO HAVE RECEIVED COMPENSATION FOR REMOVAL FROM OFFICE

A recent press report addressed the issue of a former executive officer, who had received compensation for removal from office, being re-employed by the same agency.

Government policy on merit selection, and relevant legislation, require that the applicant with the best claims for a publicly advertised vacancy be selected.

However, the community is entitled to question the soundness of the decisions to remove the former executive officer from office and pay compensation, on the one hand, and on the other hand, to select the former executive officer for an advertised vacancy in the same agency after the expiration of the period to which the compensation payment related.

To increase confidence in the integrity of decisions on the re-employment of former executive officers who have received compensation for removal from office, the following guidelines are issued to public agencies pursuant to section 49D of the Public Sector Management Act 1988.

Guidelines

 (1) Former executive officers who have received compensation for removal from office may be re-employed in an advertised vacancy, on the basis of merit, where their claims for the vacancy are demonstrably superior to other applicants in a competitive field.

(2) The concurrence of the PEO is required to the re-employment of former executive officers who have received compensation for removal from office. In considering proposals the PEO will have regard to the case presented by the agency and particularly to the following considerations:

(a) the circumstances of the former executive officer's removal from office; to test whether there are any aspects of the removal which indicate that the former executive officer should not be re-employed in the same agency;

(b) the integrity of the selection process, particularly where it is proposed that the former executive officer should be re-employed in the same or a similar capacity, with the same or similar role and responsibilities, in the same agency or another agency; to test whether there is any improper connection between the removal from office and the proposed re-employment; and

(c) where relevant, the circumstances in which the former executive officer surrendered a right of return to receive compensation for removal from office; to test whether there is any improper connection between the removal, receipt of compensation and proposed re-employment.

(3) Chief Executive Officers are to ensure that situations requiring the PEO's concurrence in accordance with (2) above are identified during the selection process and before a binding offer of employment is issued.

The arrangements explained in this Circular apply to all public agencies, including departments, statutory authorities and state owned corporations.

KEN CRIPPS
Commissioner