This document is part of the Employment Arrangements for Public Entities resource.

This guide provides advice on employment issues to consider when establishing new public entities in Victoria. The guide may also be useful for boards and CEOs of existing entities to understand the implications of their current arrangements.

A thorough consideration of employment issues early on in the process of establishing an entity can highlight the implications of various options and support informed decision-making. Where this level of analysis has not occurred, there is a risk that sub-optimal, needlessly complex, or ambiguous options may be adopted. A lack of upfront attention to employment issues can also result in arrangements that are inconsistent with the original intentions of policy designers.

The guide begins with the assumption that government has decided to establish a public entity to perform a particular role, and that its legal form has been determined, in accordance with its functions (see the VPSC’s publication Legal Form and Governance Arrangements for Public Entities).

1.1 Purpose

This guide is intended to address employment considerations relevant to public entities, not public service bodies (departments and other public service organisations).

The guide covers:

  • how to provide an entity with the power to employ
  • who should exercise those powers (e.g. CEO)
  • issues to consider in relation to different types of employees (i.e. public sector staff and public service staff).

The guide is a companion document to other VPSC public entity governance publications: