06-52 – Standard Contract of Employment General Managers of Local Councils in NSW and Standard Contract of Employment

Councils were recently notified by Circular No 06-37 regarding my approval of the Standard Contract of Employment for General Managers of Local Councils
in New South Wales.

I have by Order under section 338(4) of the Local Government Act 1993 now approved the Standard Contract of Employment for Senior Staff (other than General Managers) of Local Councils in New South Wales to be in force from 1 September 2006. This contract represents the standard documentation that
general managers must use when appointing senior staff. Please refer to Circular 06-37 for the background to development of the standard contracts.

The new requirements ensure consistency and certainty in employment relationships at the management level in local government and reflect community expectations by providing greater transparency and accountability.

They also ensure appropriate flexibility by allowing certain contractual matters to be left to the parties to negotiate, namely:
• duration of the contract (within legislative limits)
• structure and level of the remuneration package and
• performance-based requirements.

The Local Government and Shires Associations of NSW (LGSA), in consultation with Local Government Managers Australia (LGMA), and with the assistance of the Department, will issue guidelines on remuneration packaging and developing performance management systems and agreements in the near future.

Industry groups including the LGSA, LGMA, the Development and Environmental Professionals’ Association, the Local Government Engineers’ Association of NSW and the United Services Union can provide advice to their members about performance and remuneration matters and other contractual conditions.

Parties may also seek and be guided by their own legal and financial advice before entering contracts. The new standard contract requirements will not affect existing employment contracts. Any renewals of appointments must be under the standard contract in force (see sections 338(8) and 338(9) of the Act).

Contracts now available as interactive publications I am pleased to announce the release of the standard contracts of employment for general managers and other senior staff as interactive publications. This will now allow users to download the documents from the Department’s website at, complete certain fields electronically where appropriate and print the completed contracts ready for signing.

Garry Payne
Director General