INLAND REVENUE
2011 STANDARD TERMS
EMPLOYMENT AGREEMENT
May 2011
1. EMPLOYMENT POLICIES 1.1 Employment
We value our employees’ ability to make their own decisions
Philosophy
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 or subsequent letters of offer.
Policies and procedures may be introduced and amended from
time to time, at Inland Revenue’s discretion. You must also make
every effort to become familiar with them and to ensure they are
followed.
1.2 Variations
The provisions of this agreement may be varied, provided such a
variation is recorded in writing and signed by both parties.
1.3 Nature Of The
The Chief Executive is your employer while you are employed by
Employment
the Inland Revenue Department.
Relationship
Where reference is made in these Standard Terms of
Employment to “Inland Revenue” it shall mean the Chief
Executive or their nominee.
1.4 Foundation
The following are the principles that underpin the employment
Principles For
relationship. They are binding on both Inland Revenue and you:
Employment
We will value each other and act with integrity, honesty,
respect and trust and will develop a relationship based on
these features.
We will be ethical in our dealings with each other and with
our customers, and will maintain appropriate standards of
confidentiality.
We will meet and be seen to meet all legal obligations
consistently and impartially.
We will act professionally in all interactions with customers,
service providers and colleagues within Inland Revenue, and
will take responsibility for our actions.
We will work together co-operatively to promote
responsiveness, flexibility and efficiency in meeting our
customer needs, while balancing those needs with the needs
of the business.
We will work together to build a safe and healthy work
environment and will meet our obligations under the health
and safety legislation.
We will pursue quality, because it is fundamental to our
success.
1.5 Inland
As your employer, Inland Revenue is committed to the following
Revenue’s
actions and approaches:
Commitment
•
Encouraging and engaging in open two-way communication.
•
Supporting employees in their endeavours to fulfil their
duties.
•
Encouraging skill development for individuals and recognising
and rewarding high performance.
•
Encouraging suggestions for innovation and better ways to
do things.
•
Exercising good judgement.
Inland Revenue
2
May 2011
Standard Terms Employment Agreement
1.6 Your Role And
Your work responsibilities are to:
Responsibilities
•
be honest, diligent and perform to the best of your ability.
•
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.
•
conduct yourself professionally in all interactions with
customers, service providers and officers of Inland Revenue.
•
take responsibility for your own development and participate
in the opportunities for development that Inland Revenue
offers.
•
promote efficiency in Inland Revenue and contribute to the
responsible operation of our business.
•
take responsibility for your own actions and for undertaking
your duties.
•
maintain appropriate ethical standards, and develop
relationships based on trust, confidentiality and integrity.
•
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 development.
Where such a placement involves a significant 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 significant change in location.
2. REMUNERATION 2.1 General
Details of your remuneration are set out in your appointment
letter.
Your remuneration will be reviewed in accordance with the
relevant Remuneration Policy as amended from time to time.
The current version of this policy is available on the intranet.
2.2 Expenses
You will be reimbursed for actual and reasonable authorised
expenses incurred by you in the course of your employment.
2.3 Deductions
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.
2.4 Performance
Your performance will be assessed against the performance plan
Management
agreed with your manager, in accordance with Inland Revenue’s
performance management system.
3. HOURS OF WORK & RELATED PROVISIONS 3.1 Hours Of Work
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 meet
the business needs.
Where appropriate normal hours of work will be set by your
manager. They may be recorded in your appointment letter.
Inland Revenue
3
May 2011
Standard Terms Employment Agreement
Your remuneration incorporates any additional payment for long
hours or for work performed on weekends. There is no
entitlement to overtime, or time off in lieu for working additional
hours.
3.2 Rest And Meal
You are entitled to rest and meal breaks in accordance with the
Breaks
Employment Relations Act 2000, and are expected to ensure that
you take these breaks.
4. LEAVE 4.1 Public Holidays
You are entitled to the following public holidays:
•
Christmas Day
•
Boxing Day
•
New Year’s Day
•
2 January
•
Waitangi Day
•
Good Friday
•
Easter Monday
•
ANZAC Day
•
The birth of the reigning sovereign (observed on the first
Monday in June)
•
Labour Day (being the fourth Monday in October)
•
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 for hours actually
worked. You will also be entitled to an alternative holiday if this
would otherwise have been a working day for you.
4.2 Annual
Inland Revenue has an annual closedown period between the
Closedown
Christmas and New Year holidays. Inland Revenue will provide at
Period
least one month’s notice of the closedown period and the work
locations affected each year. In the event that the Wellington
Contact Centre is operating between the Christmas and New Year
holidays and you are employed to work in the Wellington Contact
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 you do not have a current leave entitlement which is
sufficient to cover the closedown period, you agree to take annual
leave in advance.
4.3 Annual Leave
After each 12 month period of employment you are entitled to
five weeks’ annual leave to be taken in accordance with the
Holidays Act 2003.
4.4 Timing
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
Inland Revenue
4
May 2011
Standard Terms Employment Agreement
in advance with your manager so that firm arrangements can be
made for the leave to be taken.
4.5 Payment
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.
4.6 Suspension of
If you are absent on discretionary leave without pay for more
Accrual
than 35 consecutive days with the exception of unpaid sick leave
and unpaid bereavement leave, you will only accrue annual leave
for the first week of leave without pay.
4.7 Sickness And
We recognise that from time to time you may need to be absent
Bereavement
from work because:
•
you are ill; or
•
you need to care for your spouse, or a dependent child or
parent when they are ill; or
•
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,
or 15 days per year once you have completed two years of
Recognised Continuous Service) and to cease paying you while
you are absent from work. You will be consulted before any such
decision is made.
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 Inland Revenue’s expense by a doctor
nominated by Inland Revenue.
The sick leave provisions in this clause are not in addition to the
sick leave provisions of the Holidays Act 2003.
4.8 Parental Leave
The provisions of the Parental Leave and Employment Protection
Act 1987 shall apply
4.8.1 Ex-Gratia
Where you are entitled to:
Payment
•
extended leave of up to 12 months, and
•
you return to work before or at the end of the leave, and
•
you complete a further 6 months’ continuous service;
EITHER:
You will be granted an ex-gratia payment equivalent to 30
working days’ leave on pay at the rate applying when you went
on extended leave.
OR
Inland Revenue
5
May 2011
Standard Terms Employment Agreement
If you are absent on extended leave for fewer than 30 working
days, you will receive a payment equivalent to the number of
days you were absent.
In either situation, if both you and your partner are employed in
the Public Service and are eligible for payment, then only one of
you is entitled to the payment and you must choose which person
will receive it.
Your ex-gratia payment is based on the percentage of
employment worked prior to your absence on parental leave. If
you worked less than full time for a short period due to your
pregnancy, prior to your commencement of parental leave,
payment will be based on the percentage rate of employment
prior to the absence on parental leave, not on the short term
change to normal hours.
4.9 Discretionary
Upon application, you may be granted discretionary leave without
Leave Without
pay on whatever conditions you and Inland Revenue may agree
Pay
at the time the leave is granted. Leave without pay of greater
than fifteen months will break your service.
4.10 Long Service
With effect from the commencement date of this Agreement, after
Leave
each five year period of Recognised Continuous Service you will
be entitled to one week of long service leave. If you have more
than five years Recognised Continuous Service as at the
commencement date of this Agreement, you will immediately be
entitled to one entitlement of one week of long service leave,
provided that you have not already received long service leave
from Inland Revenue or any other organisation in respect of this
period of service.
For the purposes of Recognised Continuous Service, the
maximum prior service that can be credited for the purposes of
long service leave as at the commencement date of this
Agreement is five years. No service which has already been
recognised by Inland Revenue or any other organisation for the
purposes of long service leave shall be recognised a second time.
This Agreement does not affect any long service leave which you
have become entitled to prior to the commencement date, but
which you are yet to take.
Inland Revenue requires you to take your entitlement to long
service leave in one period, and within five years of qualifying for
the entitlement.
In the event that you resign, or notify your resignation, or Inland
Revenue 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.
4.11 Recognised
‘Recognised Continuous Service’ means service described in this
Continuous
clause and recognised for the purposes of specific leave
Inland Revenue
6
May 2011
Standard Terms Employment Agreement
Service
entitlements. It applies only to those clauses which specifically
refer to Recognised Continuous Service.
Effective from the commencement date of this Agreement, Inland
Revenue will recognise, as Recognised Continuous Service,
service with Inland Revenue, other Departments of the Public
Service (as specified in the First Schedule of the State Sector Act
1988), the Parliamentary Service, and with any Crown Entity
(excluding District Health Boards and the Education Service as
defined in the State Sector Act 1988 (e.g. School Boards of
Trustees and Tertiary Education Institutions)), provided that:
•
there has been no break in service of greater than 15
months, or 4 years where the break was for the purposes of
childcare;
•
the previous service did not end with you being paid
redundancy compensation, any retirement payment, or any
other form of severance payment.
For the purposes of recognising service, you will be required to
provide evidence of prior service. Inland Revenue will maintain a
record of this prior service for the purposes of calculating leave
entitlements.
Where your continuous service has been recognised by Inland
Revenue prior to the commencement date of this Agreement, this
service will also amount to Recognised Continuous Service.
This clause applies only to permanent employees, and has no
application to fixed term or casual employees.
5. HEALTH AND SAFETY 5.1 Inland
Inland Revenue is committed to the health and safety of all our
Revenue’s
employees. Inland Revenue recognises that the health of our
Obligations
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 main obligation is to provide and maintain a safe
work environment. To this end Inland Revenue will:
•
Involve staff in the ongoing development of health and
safety systems and emergency procedures.
•
Provide necessary safety equipment.
•
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.
5.2 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:
•
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.
•
Co-operate with Inland Revenue on health and safety
matters.
•
Be aware of the emergency procedures of the area in which
you are working.
•
Immediately report any accident, hazard or sub-standard
conditions to the appropriate person.
•
Comply with the requirements of Inland Revenue’s Accident
insurers re work related and non-work related personal
injuries.
Inland Revenue
7
May 2011
Standard Terms Employment Agreement
•
Disclose any secondary employment details when requested
(and any subsequent changes to those details) in accordance
with the requirements of Inland Revenue’s insurers.
Actively participate in the development of appropriate health and
safety systems and procedures.
6. ENDING EMPLOYMENT
6.1 Termination Of
You or Inland Revenue may terminate this agreement by giving
Employment
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, Inland Revenue may
terminate your employment without notice.
Inland Revenue would only summarily dismiss you after giving
you an opportunity to provide an explanation of the matter of
complaint.
In the event that you:
•
commit any act of bankruptcy, become insolvent or
compound with or attempt to compound with creditors; or
•
commit any offence involving dishonesty or any indictable
offence; or
•
conduct yourself in a manner likely to bring you or Inland
Revenue into disrepute,
Inland Revenue may terminate your employment by giving
whatever notice that Inland Revenue deems appropriate.
Inland Revenue would only dismiss you on notice after giving you
an opportunity to provide an explanation of the matter of
complaint.
6.2 Suspension On
Inland Revenue may suspend you on pay where an investigation
Pay
into alleged misconduct is about to commence or has
commenced. Suspension on pay is only considered when there
is alleged serious misconduct and dismissal is an option likely to
be considered, or 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.
6.3 Termination For
If, as a result of mental or physical illness, you are incapable of
Incapacity
the proper performance of your employment duties and
obligations, Inland Revenue may terminate your employment.
In that event Inland Revenue would give you such notice as
Inland Revenue deems appropriate in your circumstances.
Before any decision is made to terminate for incapacity, you
may be required to undergo a medical examination by a
registered medical practitioner nominated by Inland Revenue at
Inland Revenue’s expense in accordance with the Medical
Assessment clause of this Agreement.
If you refuse to attend a medical examination or assessment in
accordance with this agreement, Inland Revenue reserves the
right to make a decision regarding your fitness to perform your
employment duties and obligations under this agreement, on the
Inland Revenue
8
May 2011
Standard Terms Employment Agreement
information it has available.
6.4 Medical
You agree that Inland Revenue may require you to undergo a
Assessment
medical or psychiatric examination or assessment by a registered
medical practitioner nominated by Inland Revenue, at Inland
Revenue’s expense:
•
if you have been absent from work due to a condition, illness
or injury; or
•
in the course of assessing whether you are capable of
performing your employment duties and obligations in terms
of this agreement; or
•
if Inland Revenue considers, in its opinion, that your physical
and/or mental health may be affecting the your ability to
perform the duties under this agreement safely and
effectively.
You agree that a report of any such medical examination or
assessment will be made available to Inland Revenue.
As far as practicable Inland Revenue will take your wishes
regarding a preferred medical practitioner into account.
7. MANAGEMENT OF CHANGE 7.1 Introduction
The primary focus of the management of change provisions is to
retain employees in jobs, wherever practicable, when effecting
organisational change. This will be achieved through the
maximum utilisation of the skills and experience of current
employees while maintaining Inland Revenue's ability to achieve
its required outcomes.
In the event that Inland Revenue has made a decision about
changes to its structure that affects employees the following
processes will apply:
7.2 Confirmation
You will be confirmed to a position in Inland Revenue, where:
•
the requirements of the position are the same or similar;
•
the total remuneration for the position is the same;
•
the terms and conditions of employment are no less
favourable;
•
the location of the position is within a reasonable travelling
distance;
•
the number of available positions matches the number of
candidates for confirmation.
Where there are more candidates for confirmation than available
positions, Inland Revenue will operate a fair selection process.
Should you be unsuccessful in the selection process for
confirmation, other options will be considered in accordance with
this clause.
If you decline confirmation, you will not be entitled to redundancy
compensation.
7.3 Offer Of A
You may be offered a suitable alternative position. A “suitable
Suitable
alternative position” is a position:
Alternative
•
which involves duties and responsibilities that are not
Position
unreasonable when taking into account your knowledge,
skills, and experience; and
Inland Revenue
9
May 2011
Standard Terms Employment Agreement
•
the location of the new position is within a reasonable
travelling distance.
If you decline an offer of a suitable alternative position where
your total remuneration is the same or greater, you will not be
eligible for redundancy compensation.
You may be offered a suitable alternative 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 your total remuneration in
your current position and in the new position. (“equalisation
payment”)
7.4 Offer Of An
Where you are offered an alternative position on terms which do
Alternative
not meet the criteria set out in clause 7.3 above, you will be
Position
entitled to choose whether to accept it on the terms offered or
reject it and remain entitled to redundancy compensation. You
will not be entitled to redundancy compensation if you accept any
offer of an alternative position, unless otherwise explicitly agreed.
7.5 Redundancy and Where you have:
Compensation
•
not been confirmed
•
not been offered a suitable alternative position where your
total remuneration is the same or greater
•
been offered and not accepted a suitable alternative position
where there is a reduction in your total remuneration and an
equalisation payment paid
•
been offered and not accepted an alternative position
and where no other options have been identified your
employment will be terminated and you will be entitled to the
following:
•
not less than one month’s notice of termination of
employment or payment in lieu of notice; and
•
redundancy compensation of 25% of total remuneration,
except where you have more than 5 years continuous
service, in which case you will be paid an additional 4% of
total remuneration for each complete year after the 5th. The
maximum redundancy compensation payable will be 45
weeks pay
.
There will be no entitlement to any other compensation relating
to the termination of your employment for reason of redundancy.
A redundancy shall not arise where a fixed term employment
agreement ends in accordance with the fixed term, or where a
casual employee is not provided with any further employment.
7.6 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, Inland Revenue will negotiate with the prospective
employer with the objective of arranging 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.
Inland Revenue
10
May 2011
Standard Terms Employment Agreement
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 provisions.
You may choose not to accept an offer of employment made by
the new employer.
No redundancy will arise, and no redundancy compensation will
be payable 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 or a similar 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.
8. PROFESSIONAL REQUIREMENTS 8.1 Security
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.
8.2 Conflict Of
You must ensure that you are not involved (directly or indirectly):
Interest
•
in any other employment or business which may affect or
compromise your ability to perform your duties; or
•
in an activity in conflict with the interests of the Inland
Revenue Department; or
•
in an activity which may damage the image or reputation of
Inland Revenue.
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
your Manager.
8.3 Confidentiality
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
confidentiality.
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.
Inland Revenue
11
May 2011
Standard Terms Employment Agreement
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 prosecution.
8.4 Copyright,
All work, product, and all inventions, improvement, discoveries,
Intellectual
processes, programmes and/or systems developed by you, or to
Property And
which you become aware of, in the performance of your duties
Inventions
while employed by Inland Revenue 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 Inland
Revenue may consider necessary or appropriate to vest all rights,
titles and interests therein in the Crown.
9. RESOLVING EMPLOYMENT RELATIONSHIP PROBLEMS
9.1 Personal
We will be committed to resolving any employment relationship
Grievances And
problem, including a dispute or personal grievance, as close as
Disputes
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 problem.
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 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
12
May 2011
Standard Terms Employment Agreement
