This is an HTML version of an attachment to the Official Information request 'Employment Contracts for IRD Staff'.




June 2007 



We value our employees’ ability to make their own decisions 
depending on what is happening at any time, within the 
context of the appropriate policies and procedures.   
It is neither possible nor desirable to set rules regarding 
everything that can happen in a workplace.  However it is 
desirable to set out the general terms and conditions of  
employment to provide a foundation for our relationship. 
These Standard Terms of Employment should be read in 
conjunction with your appointment letter. 
Policies and procedures may be introduced and amended from 
time to time.  You will of course be made aware of policy and 
procedure, but you must also make every effort to become 
familiar with them and to ensure they are followed. 
The Chief Executive Officer is your employer while you are 
employed in the Inland Revenue Department. 
Where reference is made in these Standard Terms of 
Employment to “the Department” it shall mean the Chief 
Executive or his or her nominee. 
These are the principles which underpin the employment 
relationship.  They are binding on both Inland Revenue and 
ƒ  We will value each other and act with integrity, honesty, 
respect and trust. 
ƒ  We will meet and be seen to meet all legal obligations 
consistently and impartially. 
ƒ  We will act professionally and take responsibility for our 
ƒ  We will work together co-operatively to balance the needs 
of our customers and the business. 
As your employer, Inland Revenue is committed to the 
following actions and approaches: 
ƒ  Encouraging open two-way communication. 
ƒ  Supporting its employees in their endeavours to fulfil their 
ƒ  Encouraging skill development for individuals and 
recognising and rewarding high performance. 
ƒ  Observing and promoting the principles of equal 
employment opportunities and cultural awareness. 
ƒ  Promoting responsiveness, flexibility and efficiency in 
meeting our customer needs.   
ƒ  Encouraging suggestions for innovation and better ways to 
do things. 
ƒ  Pursuing quality is fundamental to our success. 
ƒ  Exercising good judgement.  
Inland Revenue 
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Standard Terms Employment Agreement 

Your work responsibilities are to:  
ƒ  be honest, diligent and perform to the best of your ability. 
ƒ  work as part of a team and promote the efficient operation 
of your team and other teams within Inland Revenue to 
achieve the best outcome possible. 
ƒ  conduct yourself professionally in all interactions with 
customers, service providers and officers of Inland 
ƒ  take responsibility for your own development and 
participate in the opportunities for development that 
Inland Revenue offers. 
ƒ  promote efficiency in Inland Revenue and contribute to the 
responsible operation of our business. 
ƒ  take responsibility for your own actions and for 
undertaking your duties. 
ƒ  maintain appropriate ethical standards, and develop 
relationships based on trust, confidentiality and integrity. 
ƒ  comply with, and promote compliance with, the Inland 
Revenue Code of Conduct. 
You may from time to time be placed in another position of 
similar responsibilities without adversely affecting 
remuneration and other conditions.  Such a placement may be 
in the interests of organisational efficiency and/or your own 
Where such a placement involves a change in location your 
agreement will be sought.  If you agree to such a change you 
will be reimbursed for all actual and reasonable expenses 
incurred in taking up the appointment.  
You will be given no less than three months’ notice of any 
placement involving a change in location. 
Our remuneration policy is to reward our people for their 
contribution to achievement of the business goals as 
individuals and as part of a team. 
Details of your remuneration are set out in your appointment 
Your remuneration will be reviewed in accordance with the 
Remuneration Policy as amended from time to time.  The 
current version of this policy is attached to your letter of 
You will be reimbursed for actual and reasonable authorised 
expenses incurred by you in the course of your employment. 
Where time off is to be unpaid including if you are absent 
from work without authority, or otherwise in default, we may 
make the appropriate adjustment to your remuneration.  
Where this occurs you will be notified. 
Your performance will be assessed against the performance 
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Standard Terms Employment Agreement 

plan agreed with your manager, in accordance with the 
department’s performance management system. 
We are a professional organisation determined to have our 
customers’ needs drive our business.  Hours of work will be 
those necessary to achieve your individual performance plan 
and generally meet the business needs.  
Where appropriate normal hours of work will be set by your 
manager.  These may be recorded in your appointment letter. 
Your remuneration incorporates any additional payment for 
long hours or for work performed on weekends. 
Public Holidays 
You are entitled to the following public holidays: 
ƒ  Christmas Day 
ƒ  Boxing Day 
ƒ  New Year’s Day 
ƒ  2 January  
ƒ  Waitangi Day 
ƒ  Good Friday 
ƒ  Easter Monday 
ƒ  ANZAC Day 
ƒ  The birth of the reigning sovereign (observed on the first 
Monday in June) 
ƒ  Labour Day (being the fourth Monday in October) 
ƒ  The day of the anniversary of a province or the day locally 
observed as that day. 
If you are required by Inland Revenue to work on a public 
holiday you will be paid at the rate of time and a half of hours 
worked.  You will also be entitled to an alternative holiday if 
this would otherwise have been a working day for you. 
Annual Closedown 
Inland Revenue has an annual closedown period between the 
Christmas and New Year holidays.  Inland Revenue will 
provide at least one month’s notice of the closedown period 
and the work locations affected each year.  In the event that 
the Wellington Call Centre is operating between the Christmas 
and New Year holidays and you are employed to work in the 
Wellington Call Centre you agree that you will be available to 
work if required to do so by Inland Revenue. 
Where you have a current annual leave entitlement at the 
commencement of the closedown period you will be required 
to use that annual leave for the closedown period.   
Where your current annual leave entitlement at the 
commencement of the closedown period is insufficient to 
cover the entire closedown period, then you agree to take 
annual leave in advance to cover that part of the closedown 
period for which you do not have a current leave entitlement.  
Where you do not have a current leave entitlement you agree 
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to take annual leave in advance. 
Annual Leave 
After each 12 month period of employment you are entitled to 
five weeks’ annual leave.  
It is important that you use this time to have a break from 
work.  Ensuring you have a holiday means that you will be 
refreshed and revitalised and this is critical to maintaining a 
healthy lifestyle and workplace.  You have an obligation to 
take your leave within the year after becoming entitled to it.  
Wherever possible, leave should be scheduled for times 
causing least disruption to work requirements.  
If it is not possible for you to take all of your leave within 12 
months of becoming entitled to it you should discuss the 
situation in advance with your manager so that firm 
arrangements can be made for the leave to be taken. 
You agree that payment for annual leave will be made in the 
pay that relates to the period during which the leave is taken 
(i.e. your usual pay day).  Inland Revenue may approve your 
request for payment of annual leave prior to going on leave. 
Sickness and 
We recognise that from time to time you may need to be 
absent from work because: 
ƒ  you are ill; or  
ƒ  you need to care for your spouse, or a dependent child or 
parent when they are ill; or 
ƒ  you have suffered a bereavement, or have an obligation 
due to the death of a family member, or perhaps some 
other person with whom you have a close association. 
In such circumstances we support you taking reasonable time 
off.  While we have not initially placed a limit on the amount of 
time you may have off on pay, we reserve the right to set a 
limit on a case by case basis (which will be not less than 11 
days per year) and to cease paying you while you are absent 
from work.  You will be consulted before any such decision is 
You may be required to provide a medical certificate for any 
absence greater than three consecutive calendar days, 
whether or not these days would otherwise be working days 
for you. 
If you fail to provide a medical certificate when required to do 
so, Inland Revenue will not be required to pay you for any sick 
leave in respect of which the proof is required until you 
comply with that requirement 
In special circumstances we may require you to undergo a 
medical examination at the Department’s expense by a doctor 
nominated by the Department. 
Inland Revenue 
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The sick leave provisions in this clause are not in addition to 
the sick leave provisions of the Holidays Act 2003. 
Parental Leave 
The provisions of the Parental Leave and Employment 
Protection Act 1987 shall apply. 
Special leave without 
Upon application, you may be granted special leave without 
pay on whatever conditions you and the Department may 
agree at the time the leave is granted. 
Long Service Leave 
After each five year period of continuous employment you are 
entitled to five days long service leave. 
The Department requires you to take your entitlement to long 
service in one period, and within five years of qualifying for 
the entitlement. 
In the event that you resign, or notify your resignation, or the 
Department terminates your employment, you will forfeit any 
untaken long service leave which you may have been entitled 
to, and you will not receive payment for any unused long 
service leave upon terminating your employment. 
Your qualifying period for earning long service leave shall 
cease on the day you retire.  Any additional service which may 
accrue as a result of retiring leave will be excluded from being 
paid to you beyond your last day of duty. 
Inland Revenue is committed to the health and safety of all our 
employees.  Inland Revenue recognises that the health of our 
employees is an important ingredient in a productive and 
efficient workplace and that promotion of good health and safety 
practices is preferable to dealing with illness and accidents. 
Inland Revenue’s 
Inland Revenue’s main obligation is to provide and maintain a 
safe work environment.  To this end Inland Revenue will: 
ƒ  Involve staff in the ongoing development of health and 
safety systems and emergency procedures. 
ƒ  Provide necessary safety equipment. 
ƒ  Maintain a work environment free of unwelcome behaviour 
and provide a mechanism for reporting sexual harassment, 
ensuring a fair investigation and avoiding reprisals against 
the complainant. 
Your Obligations 
You also have a number of obligations with respect to health and 
safety, your own as well as others in the workplace.  You are 
required to: 
ƒ  Take reasonable care for your own health and safety and 
that of others who may be affected by what you do or do 
not do. 
ƒ  Co-operate with Inland Revenue on health and safety 
ƒ  Be aware of the emergency procedures of the area in 
which you are working. 
ƒ  Immediately report any accident, hazard or sub-standard 
conditions to the appropriate person. 
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ƒ  Comply with the requirements of Inland Revenue’s 
Accident insurers re work related and non-work related 
personal injuries. 
ƒ  Disclose any secondary employment details when 
requested (and any subsequent changes to those details) 
in accordance with the requirements of Inland Revenue’s 
ƒ  Actively participate in the development of appropriate 
health and safety systems and procedures. 
Inland Revenue 
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Notice of Termination 
You or the Department may terminate this agreement by 
giving not less than one month’s written notice or one 
month’s total remuneration in lieu of notice may be paid or 
forfeited as the case may be. 
In the event of serious misconduct, material breach or any 
continued non-observance or non-performance of any of the 
terms and conditions of your employment, the Department 
may terminate your employment without notice.   
The Department would only summarily dismiss you after 
considering your explanation of the matter of complaint. 
In the event that you: 
ƒ  commit any act of bankruptcy, become insolvent or 
compound with or attempt to compound with creditors; or 
ƒ  commit any offence involving dishonesty or any indictable 
offence; or 
ƒ  conduct yourself in a manner likely to bring you or the 
Department into disrepute, 
the Department may terminate your employment by giving 
whatever notice that the Department deems appropriate.   
The Department would only dismiss you on notice after 
considering your explanation of the matter of complaint. 
Suspension on Pay 
Inland Revenue may suspend you on pay where an 
investigation into alleged misconduct is about to commence or 
has commenced.  Suspension on pay is only considered when 
there is apparent serious misconduct and dismissal is an 
option likely to be considered, and there are sound reasons 
to make suspension necessary.  This includes where your 
safety or the safety of other staff or property is likely to be 
jeopardised if you remain in the workplace. 
Termination for 
If, as a result of mental or physical illness, you are incapable 
of carrying out your employment duties and obligations, the 
Department may terminate your employment.  In that event 
the Department would give you such notice as the 
Department deems appropriate in your circumstances. 
Before any termination for incapacity decision is made, you 
will undergo a medical examination by a registered medical 
practitioner nominated by the Department at the 
Department’s expense to obtain an independent medical 
report for the Department.  As far as practicable the 
Department would take your wishes regarding a preferred 
medical practitioner into account. 
Inland Revenue 
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•  Definition 
Redundancy means the situation where your employment is 
terminated because the duties, responsibilities and powers of 
your position are significantly altered or are surplus to our 
requirements due to a change in the size, structure 
responsibilities or requirements of the Department. 
•  Suitable alternative 
It may be that although the position you currently occupy is 
redundant, the Department may offer you a new position.  As 
stated in the “Your Role” section, we consider it to be a 
necessary requirement of our business that we can do so.  
Where the offer of a new position amounts to a suitable 
alternative position, you will not be eligible for redundancy 
compensation if you decline such an offer.  
Whether a position is a suitable alternative will be considered 
on a case by case basis, taking into account your skills, 
experience and employment history with the Department. 
You may be offered a position which involves a reduction in 
your total remuneration.  
If you decline such a position, you will remain eligible for 
redundancy compensation.  
If you accept such a position you will not be eligible for 
redundancy compensation, but will receive a lump sum 
payment equivalent to two years worth of the difference in 
total remuneration between your current position and the new 
A suitable alternative position will also include an offer of 
employment with an organisation created by an organisational 
•  Sale or Transfer 
If as a result of restructuring, a decision is made to contract 
out, sell or transfer the whole or any part of Inland Revenue’s 
operations, in negotiating with the prospective employer the 
objective will be to arrange for you to be offered employment 
by the new employer on no less favourable conditions of 
employment overall.  As soon as possible after the commercial 
arrangements are finalised, you will be provided with 
information about the new employer, whether you will be 
offered employment by the new employer, the basis of any 
such offer, the timetable for transition, and the process for 
consultation with you. 
You agree that Inland Revenue may supply to the potential 
new employer, employment related information about you as 
an employee of Inland Revenue for the purpose of these 
You may choose not to accept an offer of employment made 
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by the new employer. 
The suitable alternative position option may apply, however no 
redundancy will arise by reason of the sale or transfer of the 
whole or any part of Inland Revenue’s operations, where the 
person or entity acquiring the whole or any part of the 
operation offers you employment in the same capacity, or in a 
capacity you are willing to accept, on no less favourable 
conditions of employment overall, and agrees to treat your 
service as continuous. 
•  Redundancy 
Where you have not been placed in a position by confirmation 
or reassignment and where no other options have been 
identified and your employment is terminated you will receive: 
ƒ  as much notice as possible and in any event not less than 
one month’s notice of termination of employment or 
payment in lieu of notice; and  
ƒ  redundancy compensation of 25% of total remuneration, 
except where you have more than 5 years continuous 
service, when you will be paid an additional 4% of total 
remuneration for each subsequent year.  The maximum 
redundancy compensation payable will be 45 weeks pay. 
You will, in addition, receive payment for any outstanding 
leave entitlements. 
There will be no entitlement to any other compensation 
relating to the termination of your employment for reason of 
Section 6 of the Tax Administration Act 1994 places a 
responsibility on all Inland Revenue employees to “use their 
best endeavours to protect the integrity of the tax system.” 
Security of information, equipment and premises is a 
fundamental part of the way we undertake our business.  You 
must ensure that you acquaint yourself and comply with our 
policies in this respect. 
Conflict of interest 
You must ensure that you are not involved (directly or 
ƒ  in any other employment or business which may affect or 
compromise your ability to perform your duties; or 
ƒ  in an activity in conflict with the interests of the Inland 
Revenue Department 
You must not accept payment or other benefit in money or 
kind from any person or company as an inducement or reward 
for any action in connection with any matter or business 
transacted by or on behalf of the Inland Revenue Department. 
If you are in any doubt you should seek prior clarification from 
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your Manager. 
In accordance with Section 81 of the Tax Administration Act 
1994, you are required to sign and observe a Declaration of 
Fidelity and Secrecy. 
We will comply with the provisions of the Privacy Act 1993.   
You are responsible for the security of any confidential and 
commercially sensitive information under your control or to 
which you have access.  Information concerning customers, 
other employees of Inland Revenue and anything to do with 
Inland Revenue’s business, must be treated with the utmost 
The requirement for confidentiality continues after employment 
with Inland Revenue ceases and until such time as the 
material in question comes into the public domain through 
some other legitimate way. 
Such is the importance of confidentiality of information that 
any breach may provide grounds for dismissal and prosecution 
and any breach of this responsibility after you have left Inland 
Revenue’s employ may similarly provide grounds for 
Copyright, Intellectual 
All work, product, and all inventions, improvement, discoveries, 
property and Inventions  processes, programs and/or systems developed by you, or to 
which you become aware of, in the performance of your duties 
while employed by the Department shall be fully disclosed to, 
and become the sole and absolute property of the Crown.   
Upon request, you shall execute, acknowledge and deliver 
such assignments, certificates and other documents that the 
Department may consider necessary or appropriate to vest all 
rights, titles and interests therein in the Crown. 
PERSONAL GRIEVANCES  We will be committed to resolving any employment 
relationship problem, including a dispute or personal 
grievance, as close as possible to the point of origin.  You have 
the right to be represented at any stage in the process of 
raising and seeking resolution of an employment relationship 
You will seek to resolve any employment relationship problem 
with your manager.  If this is not appropriate or does not 
resolve the matter then you should raise it with your 
manager’s manager.  You will follow any applicable internal 
procedures prior to seeking mediation assistance in accordance 
with the Employment Relations Act 2000.   
Section 114 of the Employment Relations Act requires you to 
raise a personal grievance with Inland Revenue within the 
period of 90 days beginning with the date on which the action 
alleged to amount to a personal grievance occurred or came to 
your notice whichever is the later, unless Inland Revenue 
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consents in writing to the personal grievance being raised after 
the expiration of that period. 
Where you are unable to resolve any grievance or dispute with 
your manager or through internal procedures, you may apply 
to the Department of Labour Mediation Service for mediation 
assistance in accordance with section 146 of the Employment 
Relations Act.  The mediation service is confidential and aims 
to assist in resolving the grievance or dispute. 
If agreement cannot be reached with the assistance of the 
Mediation Service you may submit the grievance or dispute to 
the Employment Relations Authority for a decision.  The 
decision of the Authority is final and binding unless it is 
appealed to the Employment Court. 
Inland Revenue 
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