Introduction

Your organisation’s conflict of interest policy sets out the requirements that apply to its employees, including managers, in relation to conflicts of interest.

Usually, these include:

Employees

You must avoid conflicts of interest where possible.

But sometimes a conflict cannot be avoided.

If a conflict exists, you must:

  1. Identify it.
  2. Declare it.
  3. Follow the approved conflict of interest management plan, which your manager will develop in consultation with you. You may be asked to prepare the initial draft.
  4. Notify your manager of any changes that may affect the plan or its risk level.
  5. If in doubt, seek advice from your manager.

Managers

If you are a manager with direct reports, you should also:

  • be aware of and monitor the conflict of interest risks inherent in your direct reports’ roles
  • develop and oversee their conflict of interest management plans (if any)
  • promote awareness and provide advice about your organisation’s policy
  • model good practice.

Definition and examples

A conflict of interest exists if an employee has a private interest that could influence, or reasonably be seen to influence, how they perform their public duties.

The conflict can be actual, potential or perceived.

The private interest can be financial or non-financial, direct or indirect.

For details see the key definitions in our guidance.

Encourage your direct reports to seek advice

Conflicts of interest aren’t always clear to those who have them.

Encourage your direct reports to seek advice from you if they’re unsure about a possible conflict of interest or the application of your organisation’s policy.

If you’re unsure of the advice to give, speak with your own manager or with a conflict of interest contact nominated in your organisation’s policy, such as the integrity manager. You could do this jointly with the employee who has come to you for advice.

Support your direct reports to declare any conflicts of interest

Many employees have conflicts of interest during the course of their employment.

Part of your role in fostering a culture of integrity is to:

  • help employees to understand that having a conflict is not in itself a sign of wrongdoing, what is imperative is that they raise any matters that may be a conflict of interest
  • be supportive of employees seeking advice. Have a ‘no question is too trivial or self-evident’ approach
  • ensure your direct reports understand that they must declare any conflict of interest to you in writing on your organisation’s conflict of interest declaration and management plan form (or similar name).

Developing the plan

Key action

Once the employee has declared a conflict of interest, you will be responsible for developing and finalising a conflict of interest management plan.

Consult with the employee during this process.

Some organisations encourage their managers to have the employee put together the first draft of the plan, usually after an initial consultation with their manager.

In such cases, the manager is still responsible for either:

  • approving the plan (with or without amendments), or
  • taking into account the draft as a starting point to develop and finalise a suitable plan.

Key risk mitigation strategies

A conflict of interest management plan is a risk mitigation strategy. It balances the nature and seriousness of the conflict with the public benefit of the employee being involved in the matter.

Develop the management plan based on the risk mitigation strategies in your organisation’s conflict of interest policy.

Ensure that the plan is proportionate to the risk.

The strategies in your organisation’s policy will usually be similar to ‘the 5 Rs’ set out in our model policy, or a combination of them.

These strategies are listed from lowest to highest response level:

  • Record and monitor
  • Restrict
  • Remove
  • Recruit
  • Relinquish or resolve.

For details of these strategies see our guidance on key risk mitigation strategies.

Filling out the declaration and management plan form

The information below is general information based on the model conflict of interest declaration and management plan form we offer to organisations.

Your organisation’s form may differ from our model form. Follow your organisation’s form.

Even if your organisation’s form differs from our model form, the information below may be of general assistance to you in developing a plan.

Part A – Employee and manager details

This is where the employee fills out their details and those of their manager. Usually this will be their direct line manager. However, in some cases it will be the manager of a project or the chair of a panel, such as a recruitment panel.

Information about how to complete the form (for example, reminder information about the definitions to use) is set out at the front of the form.

Part B – Employee’s reason for using the form

Key action

This is where the employee:

  • ticks a box to choose the reason they’re making a declaration
  • provides details about why they ticked that particular box
  • assesses whether they have a conflict of interest.

Examples

These are some examples of the details an employee could insert to explain why they are filling out the form:

Conflict identified

‘My private interest is XXX. It conflicts with my public duties because …’

Consensual personal relationship

‘I have a consensual personal relationship with another employee, AB. It is a conflict of interest because there is a direct hierarchical relationship, which is that ….’

OR

‘I have a consensual personal relationship with another employee, AB. There is no direct hierarchical relationship but a conflict of interest has arisen because ….

Declarable association

‘I have a declarable association.

My father, AB, is a member of XXX gang. He was recently charged with indictable offences relating to serious violence and drugs.

I have a conflict of interest. The relationship could reasonably be seen as having the potential to influence how l perform my public duties. This is because my work involves developing policy to reduce the use of illegal drugs in the community.’

Procurement, tendering or contract management

‘l am a member of procurement panel XYZ. Consistent with our organisation’s procurement policy, l confirm that l do not have a private interest in any tenderer or bid.’

OR

‘l am a member of procurement panel XYZ. I am a former employee of firm B that is tendering.’

Recruitment and selection panel

‘I am a panel member for the recruitment of position no. PQR. Applicant A works in my team. I have a perceived conflict of interest.’

OR

‘I am a panel member for the recruitment of position no. PQR. I have no conflict of interest as a panel member.

Outside employment

‘I intend to undertake outside employment consistent with the outside employment policy. I confirm that l do not have a conflict of interest between my public duties and my proposed outside employment, which relates to XXX’.

OR

‘I am currently engaged in outside employment consistent with the outside employment policy. But a conflict of interest has arisen because …’

Political candidates and office bearers

‘I intend to enrol as a candidate in the forthcoming state election’

OR

‘I have been elected as an office bearer (Secretary) to the X party.

Declaration of Private Interests – (DOPI) – conflict identified

‘I have been directed to complete this form due to a conflict of interest noted on a DOPI form l recently submitted, dated XXX. The conflict is that …’

Directed by my manager

‘My manager directed me to complete this form because l’ll be assessing applications for the XYZ grants program. I’m not aware of having links to any potential applicants, but as the grants are highly sought after, I will advise my manager and update this form if the situation changes’.

Part C – Manager’s determination as to whether a conflict of interest exists

Key actions

If an employee declares a conflict of interest, determine whether, in your opinion, they have one. Your determination may differ from your employee’s assessment. Similarly, they may determine that they do not have a conflict of interest. But your assessment may differ.

Base your decision on:

  • the information provided by the employee on the form
  • your knowledge of their work duties.

If you need further information to decide, ask your employee. Ensure they add this extra information on the form as a written record.

If you’re uncertain about any aspect of your proposed decision, seek assistance from your own manager or a contact listed by your organisation, such as the Integrity manager.

Useful questions to help identify a conflict

Whether the employee has a conflict of interest (actual, potential or perceived) will depend on the definition of a conflict of interest in your organisation’s policy.

To help identify a conflict of interest, some useful questions are:

  • Do the employee’s private interests intersect with their work role? If so, could this create a perception of bias or favouritism in the exercise of their duties?
  • What would a fair-minded member of the public make of the situation?
  • Could the employee’s involvement in this matter cast doubt on their integrity or that of the organisation?
  • If I saw someone else in this situation, would I think they have a conflict of interest?
  • If the employee’s actions were covered by the media, could it embarrass them as an employee or the organisation?
  • In other words, does it pass the public perception test (the ‘pub’ test)?

Part D – Management plan if a conflict exists

Key action

If you determine that a conflict exists, develop a management plan and record it on the form. Remember to:

  • consult with the employee when doing so
  • (you may decide to ask the employee to prepare the initial draft)
  • ensure the plan is proportionate to the risk
  • also record when the plan is to be reviewed.

Remember that ultimately you, not the employee, are responsible for determining the contents of the management plan.

Strategies

Your organisation’s policy will set out its key risk mitigation strategies. Choose a suitable strategy or combination of strategies. See more about the key risk mitigation strategies.

These are likely to be similar to those listed below from lowest to highest response level.

  • Record and monitor
  • Restrict
  • Remove
  • Recruit
  • Relinquish or resolve.

A management plan should be proportionate to the level of risk. A conflict does not automatically exclude the employee from performing the relevant duty.

Example – Recruitment panel member

A recruitment panel member has a conflict if they work with an applicant. If the conflict is perceived, not actual, a suitable management plan may be to record and monitor the conflict.

Other panel members would be advised. They would monitor the risk level and support impartial decision-making.

If the risk level rises, other strategies may need to be put in place (such as restrict or remove).

Risk factors

The risk of having a conflict of interest and the level of risk the conflict poses will depend on a mix of factors such as:

  • your organisation’s functions
  • the employee’s work role
  • the operating environment
  • the employee’s private interests.

We offer a list of typically higher risk areas of conflict of interest. Your organisation may have already determined its own specific areas of higher risk.

Proportionate to risk

It is important that the conflict should be managed proportionate to the level of risk. In deciding what is a proportionate response, consider the combined effect of the above risk factors.

Example – capacity to influence

For example, your organisation is a regulator. But the employee with the conflict works in a very junior role with little or no capacity to influence or make decisions. This would be a much lower risk than if they worked in a senior role that exercised discretionary powers of the regulator.

Human rights and anti-discrimination

Sometimes, an issue may arise as to whether the proposed risk mitigation strategy is consistent with human rights and anti-discrimination obligations.

If this occurs the matter should be addressed on a case by case basis, as each situation and risk level will differ.

If unsure seek advice, for example from:

Useful questions to help you develop a plan that is proportionate to the risk level

Some questions that can help you identify the level of risk a conflict of interest poses and determine a proportionate response are:

  • Authority and influence: To what extent is the employee involved in the activity or decision that the conflict relates to? What influence do they have in decision-making?
  • Work responsibilities: What work responsibilities of the employee could be influenced or affected by the conflict?
  • Private interest: What is the conflicted interest? What stake does the employee have in the private interest?
  • Duration: How often will the conflict arise in the employee’s work duties and for how long? For example, regularly, for the duration of a particular project, short term, long term or ongoing? This question will also help you determine how often to review the plan.
  • Consequences: What are the possible effects if the conflict is not suitably managed?
  • Public perception: What would a fair-minded member of the public think of the situation? Would they think the proposed risk mitigation strategy alleviates any doubts about the integrity of the employee or that of the organisation?

If employee does not agree with the proposed plan

Although consultation should occur with the employee, the decision about what to include in the plan is ultimately your decision as manager, not the employee’s decision.

You are responsible for ensuring the plan is in the public interest.

At times, this means you may determine a plan that the employee does not agree with. If it looks as if it will occur, we suggest you discuss your proposed plan with your manager or other person nominated in your organisation’s policy – such as the Integrity manager.

This will:

  • provide another perspective, and
  • help you to be confident that the proposed plan is appropriate.
Your reasons why

Part D of the plan enables you to easily record whether you agree with the employee’s assessment if they have a conflict and why you have chosen the decision you made.

Part E – Declaration by employee & manager

The employee signs their declaration first.

You then sign your declaration.

The plan is finalised and commences on the date you sign it as manager.

Official record

After you finalise and approve the management plan:

  • file a copy as the official record (check your organisation’s policy to see who to send it to as the official record)
  • keep a copy of the plan yourself
  • send a copy by email to the employee.

Part F – Record of reviews and plans

This part of the form is completed by you as manager.

When to review the plan

You must review the plan:

  • at the times set out in it
  • if any change occurs that may affect the plan or its risk level.

The employee must notify you of any such change they are aware of.

There may also be changes that you, as a manager, are privy to but the employee is not aware of. Also review the plan in these circumstances.

Record of reviews

When an existing plan is reviewed and finalised, record the date in this part of the form.

This becomes the date of the current plan.

Also record the outcome of the review as either:

  • No change – no change made to plan.
  • New plan – a new plan was developed because changes were made to the previous plan.
  • Conflict of interest no longer exists – the plan ceases as the conflict no longer exists.

Lodge the reviewed plan as an official record, send the employee a copy, and keep a copy yourself.

Preparing a new plan if changes are required

Prepare a new plan if there are any updates to the existing plan when it is reviewed.

Reason for preparing a new plan

Preparing a new plan ensures that the full details of the earlier plan are preserved for the time period it applied.

Method

To prepare a new plan, copy the existing plan and make any changes on the copy.

Timing

The existing plan applies while the new plan is being developed.

The new plan is finalised and commences on the date the manager signs the declaration.

When plan finishes

If the conflict of interest itself finishes, also record this in part F.

Confidentiality

Follow the confidentiality requirements in your organisation’s policy. For some private interests, such as if an employee declares a personal consensual relationship, your organisation may have additional confidentiality requirements in place.

Administration of your organisation’s policy

Your organisation must treat information and administer its policy in accordance with all relevant laws and other obligations, such as:

For example, the Declaration and management plan form will have a collection notice in Appendix 1.

Reviewed 11 September 2024

Published 31 May 2024