About this guide

When you perform your public duties as an employee it’s vital that your decision-making is impartial. This helps to:

  • maintain the public’s trust in your organisation
  • ensure decisions are made in the public interest
  • prevent corruption.

This guide sets out what must happen if a conflict arises between your private interests and your public duties as an employee.

Who this guide applies to

This guide is for use by Victorian public sector employees and organisations.

For ease of reading, in this guide we use the term ‘employee’ to cover:

  • employees of your organisation
  • contractors, consultants or labour hire employees required as part of their contract to comply with your organisation’s conflict of interest policy
  • anyone else your employer’s conflict of interest policy applies to.

Some organisations extend their policy to also cover, for example:

  • volunteers (if they are not covered by a volunteer policy)
  • members of advisory groups (if they’re not covered by the organisation’s policy for board members).

Different requirements for board directors and members

Most organisations base their conflict of interest policy for employees on our model policy.

It does not cover board members, who should have a separate policy and forms.

This is because, whilst they are based on similar principles, the requirements for employees and board members differ.

For more information about the requirements for boards see boards.vic.gov.au.

Follow your organisation’s policy

This guide is general advice based on the model policy we offer.

It sets out key things to know and do about conflicts of interest. It will help you to understand your basic obligations and your organisation’s policy.

Your organisation will have its own conflict of interest policy, which you must follow.

Usually, it will be consistent with our model policy and this guide. But it may include some different requirements. For example, some organisations:

  • have stricter requirements
  • have examples that are specific to your organisation.

Always check and follow your organisation’s conflict of interest policy when applying this guidance.

Key things you must do

You must perform your public duties consistent with the Code of conduct for Victorian public sector employees. If you work for a special body a similar code applies.

As part of these requirements, you must:

  • act with integrity and impartiality
  • put the public interest above your private interests when you perform your job
  • follow your organisation’s conflict of interest policy.

Employees

You must avoid conflicts of interest where possible.

But sometimes a conflict cannot be avoided.

If a conflict exists, you must follow these steps:

  1. Identify it.
  2. Declare it in writing to your manager.
  3. Follow the conflict of interest management plan that your manager develops 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’re 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 this policy
  • model good practice.

What the Audit and Risk Committee must do

The Audit and Risk Committee must ensure it receives a report at least annually on the organisation’s conflict of interest processes and their effectiveness.

Definitions and examples

Step-by-step guides

Key risk mitigation strategies

The management plan for a conflict of interest will usually be based on one of the following key risk mitigation strategies, or a suitable combination of these ‘5 Rs’:

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

These strategies are listed from lowest to highest response level.

The approach taken will be proportionate to the risk.

Check your organisation’s policy in case it differs.

Related information and advice

Conflicts of interest are not always clear to those who have them. If you are unsure about a possible conflict of interest or the application of your organisation’s policy, seek advice from:

  • your manager
  • a similar person nominated in your organisation’s policy.