The conditions of employment of employees holding positions in the State services or the relevant occupational class, as the case may require; and

The conditions of employment provided by good employers outside the State services to persons who hold positions that have duties and responsibilities that are closely comparable with the duties and responsibilities of the positions in the State services or the relevant occupational class, as the case may require.

The conditions of employment of the persons holding positions outside the State services are—

The conditions of employment (other than pay scales) of the persons holding positions outside the State services differ sufficiently to prevent a fair comparison; or

The remuneration of the persons holding positions outside the State services is derived wholly or substantially from the Government or from rates or from levies or from licence fees.

If external comparability can be achieved, shall prescribe conditions of employment that are broadly in line with those—

If external comparability cannot be achieved, shall prescribe conditions of employment that fairly reflect the conditions of employment generally prevailing at the time outside the State services, being conditions of employment that good employers outside the State services would provide if they were required—

Will enable the State services to recruit and retain an efficient staff; and

Will take account of special responsibilities or conditions applying to employment in the occupational class; and

Will be fair to the tax-paying public and to employees in the State services.

External comparability, where it can be achieved, in relation to the remuneration currently being received by employees in that occupational class:

Vertical relativity, being the adequacy, after taking into account differences of responsibility and skill, of the margins between the salary steps in that occupational class, and between salaries in that occupational class and salaries determined by the Higher Salaries Commission under the Higher Salaries Commission Act 1977:

Horizontal relativity, being a comparison between the current remuneration being received by employees in positions in the occupational class and the current remuneration received by employees in benchmark positions in other occupational classes, which benchmark positions, however dissimilar in job content, have some similar requirements such as education, training, or skill to the positions in that occupational class, which comparison shall involve taking into account any differences in the levels of skill and responsibility between the positions in that occupational class and those benchmark positions:

Internal relativity, being a comparison between the current remuneration being received by those in positions in that occupational class which have duties or responsibilities that are closely comparable with the duties or responsibilities of positions in another occupational class:

Recruitment and retention, being the need to attract, and to hold at all levels of that occupational class, enough employees of sufficient competence to enable the employing authority to provide efficiently, and without endangering the health or safety of those employed in that occupational class, the services that are required to be provided by that authority:

The adequacy of the current pay scale to meet the need mentioned in paragraph (e) of this subsection.

Persons who hold positions in other occupational classes or outside the State services, being, in either case, positions which, however dissimilar in job content, have some similar requirements such as education, training, or skill to the positions in that occupational class; or

Persons—

Persons—

The closer the resemblance between the duties and responsibilities of benchmark positions and those of the positions outside the State services with which the benchmark positions are being compared the greater shall be the weight to be given to external comparability in comparison with other relativities:

The more closely pay rates based on vertical relativity are linked to external comparability, the greater shall be the weight attached to vertical relativity; and in this connection, without limiting the generality of the foregoing provisions of this paragraph,—

Horizontal relativities shall have weight only when no closer comparisons are available; and, in choosing between them, the more likely a comparison is to indicate pay rates that are in accordance with section 9 of this Act and are realistic for the occupation under review, the greater shall be its weight:

Internal relativities shall have weight only when no external comparability and no horizontal relativities are available; and in choosing between internal relativities the more likely a comparison is to indicate pay rates that are in accordance with section 9 of this Act and are realistic for the occupation under review, the greater shall be its weight:

Recruitment and retention, whether or not there is any abnormal ease or difficulty of recruitment and retention established, shall always be given weight, together with such other criteria as may be applicable, in determining whether or not the aim specified in section 9 of this Act is being achieved in respect of the pay scale for the occupational class:

Whenever abnormal ease or difficulty in attracting and holding enough competent staff indicates that rates resulting from the application of section 9 of this Act and based on external comparability or other relativities are more than are needed to attract and hold enough competent staff or are less than are needed for that purpose, recruitment and retention shall outweigh the other criteria.

Current remuneration means current wage or salary rates, unless it can be shown, taking into account other conditions of service, that effective remuneration differs from wage or salary, and that such a difference can be evaluated:

References to employment outside the State services shall be limited to employment in New Zealand, unless it can be shown that there is an effective demand outside New Zealand for New Zealand staff of the occupation and grade concerned, in which case the pay scale shall be fixed (taking into account overseas salaries together with other relevant factors) at a level that will enable the State services to recruit and retain an efficient staff:

References to employment outside the State services shall not include self-employed persons:

“Provided that, when so many of the counterparts of those in the occupation and grade concerned are self-employed as to prevent the application of external comparability, then the pay scale shall be fixed (taking into account the incomes of self-employed persons together with other relevant factors) at a level that will enable the State services to recruit and retain an efficient staff:

References to employment outside the State services shall be limited to employment with good employers, that is to say, those maintaining standards which are generally accepted for the time being as necessary minima; and (apart from general adjustments, based on the widest sampling of the sector outside the State services) comparisons shall, where possible, be made with employers who are competing in the same labour market as the State services and whose conditions of employment are similar:

External comparability shall require, not that State services pay for a benchmark position shall correspond to the mean of the rates for its counterparts outside the State services, but that it shall fall within a reasonable range about that figure, taking into account such other relevant considerations as the quality of performance sought, the record of recruitment and retention in that occupation, and likely changes in future demand:

External comparability shall not require the setting of separate district pay scales for occupational classes which have a distribution throughout New Zealand, and State services pay scales (except under awards and industrial agreements) shall be uniform throughout New Zealand:

Each reference to abnormal ease in recruiting and retaining staff of an occupation in the State services means ease—

Each reference to abnormal difficulty in recruiting and retaining staff of an occupation in the State services means difficulty—

Where it appears likely that, by virtue of the application of section 11(f) of this Act, recruitment and retention will outweigh the other criteria, the estimated extra cost of getting more staff at increased rates shall be compared with the benefit which the State services expect to derive from their employment:

Subject to any other enactment, it shall be for the employing authority in each case to decide, after having regard to the need to preserve the health and safety of the employees of that occupational class, the standard and extent of the services referred to in paragraph (h) of this section and in section 10(1)(e) of this Act:

“Provided that an employing authority shall not, for the purpose of avoiding the application of the provisions or criteria applicable under paragraph (h) of this section or section 10(1)(e) of this Act to any current preview of pay scales, redetermine the standard and extent of those services.”

Consult with the Higher Salaries Commission; and

Have regard to—

Consult with the Higher Salaries Commission; and

Have regard to—

In a year to be appointed by the Minister for the purposes of this paragraph, and in every second year thereafter, a review of the pay scales of the Executive/Clerical occupational class and related occupational classes and groups; and

In a year to be appointed by the Minister for the purposes of this paragraph, and in every second year thereafter, a review of the pay scales of the Trades occupational classes and related occupational classes and groups.

In accordance with section 30a of this Act, the pay research exercises required for the purposes of that section; and

Such other pay research exercises as may from time to time be determined under its rules.

Shall be made available to every employing authority and service organisation whose employees or members will be affected by the exercise; and

Shall be taken into account in fixing the pay scales for the occupational class affected.”