Clause 3 sets out the purposes of the Bill. This clause differs from section 1A of the Act; however, some elements of section 1A that are not in this clause are found elsewhere in the Bill, for example, in the public service principles clause in clause 10. The purposes of the Bill are—

• to continue the public service and modernise its operation, while recognising and enhancing the non-legislative conventions that it operates under:

• to set out the shared purpose, principles, and values of the public service and the people working in it:

• to establish organisational forms and ways of working, including across public service agencies, to achieve better outcomes for the public:

• to extend some clauses in the Bill that apply to the public service to other State services and other areas of government:

• to affirm that the fundamental characteristic of the public service is acting with a spirit of service to the community.

Clause 4 contains a guide to the Bill that describes its scope and the main features of each Part. The Bill will apply mainly to the public service, which includes public service agencies and Crown agents (but, in the latter case, for the purposes of subparts 2 and 4 of Part 1 only). Some clauses of the Bill will also apply to the wider State services and other areas of government.

Clause 5 contains definitions of words and terms used in the Bill. These are largely based on those in section 2 of the Act. Some have been changed to reflect changes in names of some public service roles, to reflect the new types of public service agencies, or to include the role of functional chief executive (which is a new role established by the Bill). Some definitions remain the same as in the Act, although in some cases the language has been updated.

Clause 6 is the operative clause for transitional, savings, and related provisions that are set out in Schedule 1.

Clause 7 says that the Bill binds the Crown.

Clause 8 contains a definition of the public service. The public service will comprise 4 types of public service agencies, which are departments, departmental agencies, interdepartmental executive boards, and interdepartmental ventures. Some changes have been made to the departmental agency model that has existed since 2013. These are set out in Part 2. The latter 2 types of agencies are new and further detail about their operation is set out in Part 2. The public service also includes Crown agents for the purposes of subparts 2 and 4 of Part 1 only. Crown agents are also covered by other clauses in the Bill outside of subparts 2 and 4 of Part 1. However, this is because they are Crown entities that are part of the wider State services.

Clause 9 sets out the purpose of the public service, which has 5 elements:

• to support constitutional and democratic government:

• to enable both the current Government and successive governments to develop and implement their policies:

• to deliver high-quality and efficient public services:

• to support the Government to pursue the long-term public interest:

• to facilitate active citizenship.

Clause 10 sets out the public service principles and describes corresponding behaviours to achieve the purpose of the public service set out in clause 9. Those behaviours are—

• to act in a politically neutral manner:

• when giving advice to Ministers, to do so in a free and frank manner:

• to make merit-based appointments (unless an exception applies under the Bill):

• to foster a culture of open government:

• to proactively promote stewardship of the public service, including of its long-term capability and its people, its institutional knowledge and information, its systems and processes, its assets, and the legislation administered by agencies.

Clause 10 also says that public service chief executives and boards of Crown agents have particular responsibilities in relation to the public service principles. Chief executives are responsible for upholding the principles when carrying out their responsibilities and functions under clause 50, and for ensuring that the agencies they lead, or (in the case of functional chief executives) carry out some functions for, do so. Chief executives are responsible for these things only to the Commissioner. Boards of Crown agents are responsible for ensuring that the entities they govern uphold the principles when carrying out their functions. The responsibility on boards of Crown agents is a collective duty of each board and is owed only to the responsible Minister under section 58 of the Crown Entities Act 2004.

Clause 11 says that the fundamental characteristic of the public service is acting with a spirit of service to the community. Clause 11 also says that chief executives and boards of Crown agents must preserve, protect, and nurture the spirit of service to the community that public service employees bring to their work.

Clause 12 says that the role of the public service includes supporting the Crown in its relationships with Māori under the Treaty of Waitangi (te Tiriti o Waitangi). In the Act currently, express provision for Māori is limited to references in 2 sections setting out good employer requirements. Clause 12 says that the Commissioner, chief executives, interdepartmental executive boards, and boards of interdepartmental ventures are responsible for:

• developing and maintaining the capability of the public service to engage with Māori and to understand Māori perspectives:

• in the employment area,—

  • in the case of the Commissioner, recognising the matters listed in clause 71(2)(d) in the development and implementation of the leadership strategy under clause 59:

  • in the case of chief executives and public service boards that employ staff, operate an employment policy that meets the requirements of clause 71(2)(d).

Clause 71(2)(d) of the Bill is based on section 56(2)(d) of the Act.

Clause 13 describes whom the responsibilities under clause 12 are owed to by the people and boards listed in clause 12 and how these apply. Clause 13 also imposes a requirement on those people and boards to report to the Commissioner on progress made towards achieving those responsibilities.

Clause 14 sets out the public service values along with corresponding behaviours. The public service values are to seek—

• to treat all people fairly, without favour or bias:

• to take responsibility for its work, actions, and decisions:

• to act with integrity and be open and transparent:

• to treat all people with dignity and compassion and act with humility:

• to understand and meet people’s needs and aspirations.

Clause 14 also says that the public service values are given effect to only through minimum standards of conduct set by the Commissioner.

Clause 15 gives the Commissioner a power to set minimum standards of integrity and conduct that apply in the public service and other specified agencies in the State services. This clause is largely based on section 57 of the Act. One change made in the Bill is that the Parliamentary Service is no longer subject to standards set by the Commissioner. Another change is that the standards may be set out in any form the Commissioner thinks fit rather than being limited to the form of a code of conduct as is required by the Act currently.

A transitional provision in clause 8 of Schedule 1 has the effect that the contents of the code of conduct that are current immediately before the commencement of the Bill are to be treated as minimum standards set by the Commissioner under clause 15 of the Bill until the contents are altered or replaced.

The Commissioner may vary the application of standards in particular cases. The standards must be notified to the agencies in or to which they apply and any variation in application must be notified to the agency concerned. Clause 15 also allows the Commissioner to provide advice to other State services on matters that affect the integrity and conduct of individuals.

Clause 16 says that agencies, individuals, and groups must comply with minimum standards set by the Commissioner. However, an exception can be granted by the Commissioner or the appropriate Minister. Exceptions cannot be granted for public service agencies or Crown agents. This is new for Crown agents which, at present, can derogate from standards under section 57A of the Act.

Clause 17 gives the Commissioner a power to issue guidance on integrity and conduct. The guidance is not limited to the subject matter of minimum standards set under clause 15. Guidance must be notified to agencies in or to which it applies.

Clause 18 says that if guidance on rights and responsibilities is issued it must address rights and responsibilities relating to freedom of expression and the rights and responsibilities of individuals who have obligations as a member of a profession.

Clause 19 says that minimum standards and guidance are neither legislative instruments nor disallowable instruments and do not have to be presented to the House of Representatives.

Clause 20 acknowledges that employees of the public service have all the rights and freedoms affirmed in the New Zealand Bill of Rights Act 1990 in accordance with the provisions of that Act. Clause 20 also says that the Act applies to the exercise and enforcement of those rights and freedoms, along with any other enactment that does so, including the Human Rights Act 1993. This clause is intended to have no legal effect beyond that in the Acts referred to or in other enactments that apply to the exercise or enforcement of those rights and freedoms.

Clause 21 applies when departments and departmental agencies are established, disestablished, or reorganised by the executive government. The decision to do so will be recorded in an Order in Council that adds, removes, or amends items in Part 1 or 2 of Schedule 2 so that the lists of departments and departmental agencies in the schedule remain current. An order establishing a departmental agency must also identify its host department, and the name of the host department will also be also added to Schedule 2.

Clause 22 says that the functions of a departmental agency may be determined by the appropriate Minister for the agency and the appropriate Minister for its host department, except as provided in an enactment.

Clause 22(2) describes 2 types of working arrangements. These are that the chief executive of the departmental agency may operate outside the strategic and policy framework of the host department and that the chief executive of the departmental agency may manage assets and liabilities. These working arrangements, if they apply in any case, will have consequences for the departmental agency under the PFA. The Ministers may decide that 1 or both of the working arrangements will apply only if they are reasonably satisfied, in each case, that this is necessary or desirable for the agency to carry out its functions. Clause 21(2)(b) requires that if either or both working arrangements apply, this must be recorded in the Order in Council relating to the departmental agency.

Clause 22 also says that a host department must provide corporate services to a departmental agency unless the 2 chief executives agree a variation. Other working arrangements must be agreed by the 2 chief executives and approved by the appropriate Ministers.

Clause 23 sets out the purposes of interdepartmental executive boards. These are—

• to align and co-ordinate strategic policy, planning, and budgeting activities for 2 or more departments with responsibilities in a subject-matter area:

• to support those departments to undertake priority work in the subject-matter area:

• to support cross-department initiatives in the subject-matter area.

Clause 24 applies when an interdepartmental executive board is established, disestablished, or reorganised by the executive government. The decision to do so will be recorded in an Order in Council that adds, removes, or amends an item in Part 3 of Schedule 2 so that the list of interdepartmental executive boards in the schedule remains current. An order must state the name of the board, list the departments with responsibilities in the subject-matter area in which the board will work (the board’s remit), and identify the servicing department. The name of the servicing department will also be added to Schedule 2.

In clause 24, the word departments means departments, departmental agencies, the New Zealand Police, and the New Zealand Defence Force.

Clause 25 lists clauses of the Bill that will apply to these new boards. The boards will have certain responsibilities and powers as if they were public service chief executives. Other clauses in the Bill also apply to these boards, but by express reference in those clauses. For example, because a board is a public service agency, it may be the subject of an access request under clause 16 of Schedule 3. These access requests may be made by political parties during negotiations to form a government after a general election.

Boards also have a power to delegate administrative tasks to their servicing department.

Clause 26 says that the members of a board are jointly responsible to the appropriate Minister for the operation of the board.

Clause 27 gives the Commissioner the function of selecting members of a board from the chief executives of the departments that are included in the board’s remit. The Commissioner must designate 1 of those members as the chairperson and may appoint 1 or more independent advisers to the board. The Commissioner must seek input from the Minister of State Services and the appropriate Minister before selecting board members or designating a chairperson, and may seek advice from other sources.

In clause 27, the term chief executives means the chief executives of departments, departmental agencies, the New Zealand Police, and the New Zealand Defence Force.

Clause 28 says that independent advisers do not have any decision-making authority on a board.

Clause 29 requires a board to publish its operating procedures on the Internet.

Clause 30 sets out the purposes of interdepartmental ventures. These are—

• to deliver services or carry out regulatory functions that relate to the responsibilities of 2 or more departments:

• to assist to develop and implement operational policy relating to those services or regulatory functions.

Clause 31 applies when an interdepartmental venture is established, disestablished, or reorganised by the executive government. The decision to do so will be recorded in an Order in Council that adds, removes, or amends an item in Part 4 of Schedule 2 so that the list of interdepartmental ventures in the schedule remains current. An order must state the name of the venture and list the departments with responsibilities that relate to the services or regulatory functions that will be delivered or carried out by the venture (the relevant departments).

In clause 31, the word departments means departments, departmental agencies, the New Zealand Police, and the New Zealand Defence Force.

Clause 32 lists clauses of the Bill that will apply to the boards of these new ventures. The boards will have certain responsibilities and powers as if they were public service chief executives. Other clauses in the Bill also apply to these boards, but by express reference in those clauses. For example, a board of a venture is required to be a good employer under clause 71.

Clause 33 says that the members of a board are jointly responsible to the appropriate Minister for the operation of the board.

Clause 34 says that the members of the board of a venture are the chief executives of all the relevant departments. Clause 34 also gives the Commissioner the function of designating 1 of those members as the chairperson. The Commissioner must seek input from the Minister of State Services and the appropriate Minister before designating a chairperson, and may seek advice from other sources.

In clause 34, the term chief executives means the chief executives of departments, departmental agencies, the New Zealand Police, and the New Zealand Defence Force.

Clause 35 requires a venture to publish its operating procedures on the Internet.

Clause 36 sets out the purpose of joint operational agreements, which is to provide a formal structure for co-operative and collaborative working arrangements between public service agencies.

Clause 37 says that 2 or more chief executives or boards may enter into a joint operational agreement for their agencies to work together to achieve stated goals. The agreement of the Commissioner is required before an agreement can be executed and it may not do certain specified things.

Clause 38 requires the chief executives who are parties to a joint operational agreement to take reasonable steps to provide sufficient resources to achieve the stated goals of the agreement. Clause 38 also places a limit on enforceability of these agreements. They are enforceable only as a matter for which a chief executive or board is accountable for their actions to the Commissioner or to the appropriate Minister.

Clause 39 lists the 3 ways in which an agreement may be terminated.

Clause 40 provides for a Commissioner to be appointed by the Governor-General. An appointment will be made on the recommendation of the Prime Minister after consultation with the leader of each political party represented in the House of Representatives. The consultation requirement is new.

Clause 41 describes the role of the Commissioner, who will act as the Head of Service by providing leadership of the public service, including of its agencies and workforce, and by oversight of the performance and integrity of the system. The Commissioner also will provide leadership to the wider State services in the ways provided in the Bill.

Clause 42 lists the general functions of the Commissioner. This clause updates section 6 of the Act. Clause 42 does not provide a complete list of the Commissioner’s functions. Other functions are expressly provided for in other clauses in the Bill.

Clause 43 requires the Commissioner to act independently when making decisions about individual chief executives. However, this does not apply when the Commissioner is appointing, reappointing, transferring, or removing a chief executive to or from office, or when setting the conditions of employment for a chief executive.

Clause 44 is the operative provision for other functions and powers of the Commissioner that are set out in Schedule 3.

Clause 45 provides for the appointment of at least 1 but not more than 2 Deputy Commissioners. The Act allows for the appointment of 1 Deputy Commissioner currently. Under the Bill, a Deputy Commissioner may be appointed by the Governor-General. An appointment will be made on the recommendation of the Prime Minister after consultation with the leader of each political party represented in the House of Representatives. The consultation requirement is new.

A Deputy Commissioner may carry out all the functions of the Commissioner subject to control of the Commissioner. If 2 Deputy Commissioners are appointed, the Commissioner may assign to either or both of them responsibilities to achieve objectives in particular subject-matter areas. A Deputy Commissioner may act as the Commissioner in specified circumstances. A Deputy Commissioner may also be appointed an acting Commissioner under clause 2(1) of Schedule 4.

Clause 46 is the operative provision for other terms and conditions of employment for the Commissioner and Deputy Commissioners that are set out in Schedule 4.

Clause 47 says that the Commissioner is the chief executive of the Commission. The Commissioner may delegate all or part of the chief executive role to a Deputy Commissioner or other person. The ability to delegate the role is now expressly provided for in this clause, although it is available currently under the general delegation power in the Act. The general rules for delegation in clauses 2 to 4 of Schedule 6 (based on sections 41 and 42 of the Act) apply to a delegation under this clause.

Clause 48 gives the Commissioner a power to appoint 1 or more advisory committees to assist with carrying out any of the Commissioner’s functions. An advisory committee will be able to make inquiries, conduct research, or make reports. The Commissioner will decide who the members of an advisory committee will be after having due regard to the nature of the community interest in the particular matter or matters to be addressed by that advisory committee.

Clause 49 gives the Commissioner the power to appoint chief executives to lead departments and departmental agencies as well as to appoint individuals to the new functional chief executive roles. Both chief executives who lead departments or departmental agencies and functional chief executives who will carry out some functions within departments are public service chief executives under the definition in clause 5.

The term administrative head applying to chief executives who lead departments and departmental agencies in section 31 of the Act is not carried over into the Bill. A transitional provision in clause 4(2) of Schedule 1 says that this change does not create any distinction between public service chief executives whether they were appointed or reappointed before, on, or after the commencement of the Bill.

When a functional chief executive role is established, disestablished, or reorganised by the executive government, the decision to do so will be recorded in an Order in Council. The order will add, remove, or amend an item in Schedule 5 so that the list of functional chief executives in the schedule remains current. An order must state the designation of the role, identify the host department, and set out the particular functions that the role will have within the host department (see the definition of particular functions in clause 5). The name of the host department will also be also added to Schedule 2.

Clause 49 also refers to Schedule 7, which contains provisions relating to the appointment and performance review of chief executives. Clause 11 of Schedule 7 makes special provision for the Commissioner as chief executive of the Commission and for the Solicitor-General as chief executive of the Crown Law Office. Some provisions in that schedule do not apply to those two roles. This special provision is currently provided for in section 44 of the Act.

Clause 50 sets out the general responsibilities of chief executives who lead agencies. This clause is largely based on section 32 of the Act. One change made by the Bill relates to the responsibility for stewardship. The responsibility for stewardship currently in section 32(1)(d) of the Act has been moved to clause 10 (public service principles) and has been extended. A new stewardship responsibility is now in clause 50(1)(d). This is to support the Minister to act as a good steward of the public interest in specified ways. The responsibilities listed in this clause are additional to responsibilities and functions expressly provided for in other clauses in the Bill.

Clause 50 also says that—

• the chief executive of a department is not responsible for carrying out functions of a departmental agency hosted by the department unless expressly provided in an enactment:

• the chief executive of a departmental agency is responsible for carrying out its functions only, and not any functions of the host department unless expressly provided in an enactment:

• the chief executive of a servicing department of an interdepartmental executive board is not responsible for carrying out functions of the board, except for tasks delegated to the department under clause 25(2); however, if that chief executive is also a member of that board they have full responsibilities as a member of the board.

Clause 51 says that the responsibilities listed in clause 50 apply to functional chief executives but that they are responsible to the appropriate Minister for the responsibilities listed only to the extent that those responsibilities are relevant to their particular functions (see the definition of particular functions in clause 5). A functional chief executive is responsible for carrying out their particular functions only, and not any other functions of the host department unless expressly provided for in the Bill, and has other responsibilities under the Bill to the extent only that is relevant to those particular functions. The chief executive of a department is not responsible for carrying out the functions of a functional chief executive hosted by the department unless expressly provided in the Bill.

Clause 52 requires chief executives to act independently when making decisions about individual employees. However, this does not apply when a chief executive is making decisions about ministerial staff under clause 68.

Clause 53 says that working arrangements between a functional chief executive and a host department must be agreed by the 2 chief executives and approved by the appropriate Ministers.

Clause 54 gives the Commissioner the power to designate a public service chief executive as a system leader to lead and co-ordinate best practice in a particular subject-matter area across the whole or part of the State services. System leaders are responsible to the appropriate Minister.

Clause 55 allows a system leader to set standards and issue guidance relating to the particular subject-matter area that they lead and co-ordinate. This can be done only if agreed by the appropriate Minister. The standards will apply only in or to public service agencies. Guidance issued by a system leader applies more widely in or to all State services.

Clause 56 is the operative provision for other functions and powers of chief executives set out in Schedule 6 and clauses relating to the appointment and performance review of chief executives in Schedule 7.

Clause 57 requires the Commissioner to establish a public service leadership team made up of all chief executives of departments, the 1 or 2 Deputy Commissioners, and 1 or more persons from 1 or more of the following (as the Commissioner thinks fit):

• chief executives of departmental agencies:

• functional chief executives:

• chief executives of Crown agents:

• the chief executive of the New Zealand Police:

• the chief executive of the New Zealand Defence Force.

Clause 58 sets out the purposes of the public service leadership team, which are—

• to provide strategic leadership that contributes to an effective and cohesive public service:

• to work together co-operatively and model leadership behaviours:

• to assist its members to fulfil their responsibilities.

Clause 59 requires the Commissioner to develop and implement a strategy for the development of senior leadership and management capability in the public service (the leadership strategy). In doing so, the Commissioner must ensure that the strategy meets both the needs of agencies themselves and the needs of the public service as a whole. This must include allowing for the flexible deployment of senior leaders. The Commissioner may promote the leadership strategy to other State services and invite them to assist to develop and implement the strategy. This clause is largely based on section 47 of the Act.

Under clause 12(2)(b)(i) of the Bill, the Commissioner is responsible for recognising the matters listed in clause 71(2)(d) when developing the leadership strategy. Clause 71(2)(d) relates to good employer requirements for Māori and is based on section 56(2)(d) of the Act.

Clause 60 gives the Commissioner a new power to issue guidance to chief executives to assist them to implement the leadership strategy.

Clause 61 requires chief executives and boards of public service agencies to—

• develop senior leadership and management capability of their employees:

• flexibly deploy senior leaders in their agency to contribute to meeting the needs of the public service.

All chief executives must assist the Commissioner to develop a leadership strategy under clause 59. A chief executive or board that is the employer of staff in a public service agency (including under delegation) must appoint and deploy senior leaders, having regard to the leadership strategy.

Clause 62 allows the Commissioner to arrange for a public service employee to be seconded elsewhere in the public service for specified purposes. Certain requirements that would usually apply to appointments do not apply to secondments under this clause.

Clause 63 defines certain terms relating to public service employees.

Clauses 64 to 67 set out the rights, duties, and powers of an employer that the chief executive or board of a public service agency has in relation to public service employees who carry out the functions of the agency. These provisions are based on section 59 of the Act and are expanded to include the new types of public service agencies provided for in the Bill.

Clause 64 relates to departments. The chief executive of a department may appoint the public service employees that the chief executive thinks necessary to carry out the functions of the department. The chief executive has the power to remove employees. The chief executive also generally has the other rights, duties, and powers of an employer in relation to the employees. There are some exceptions to this (for example, see clauses 76(b), 77, and 80) where the Commissioner has a role. This clause is based on section 59(1) of the Act.

As provided in clause 63, a person employed in a position in a department may be referred to as a public service employee or, more specifically, an employee of the department.

Clause 65 relates to interdepartmental ventures. It confers equivalent employer rights, duties, and powers on the board of an interdepartmental venture, in relation to carrying out the functions of the interdepartmental venture, to those the chief executive of a department has under clause 64 in respect of a department’s functions.

As provided in clause 63, a person employed in a position in an interdepartmental venture may be referred to as a public service employee or, more specifically, an employee of the interdepartmental venture.

Clause 66 applies to a departmental agency. In relation to the employees of the departmental agency’s host department who carry out the functions of the departmental agency, the chief executive of the departmental agency is treated as having certain powers as an employer. These are the ability to appoint and remove employees and the other rights, duties, and powers specifically set out in this clause.

These rights, duties, and powers are treated as delegated by the chief executive of the agency’s host department (and that chief executive is not able to exercise those powers in respect of those employees). That is, although the employees are referred to as employees of the host department, in many respects in relation to individual employees the chief executive of the departmental agency carries out the role of employer. This clause is based on section 59(2) and (3) of the Act.

Clause 67 applies to interdepartmental executive boards. It confers equivalent employer rights, duties, and powers on an interdepartmental executive board, in relation to carrying out the functions of the board, to those the chief executive of a departmental agency has under clause 66 in respect of a departmental agency’s functions.

These rights, duties, and powers are treated as delegated by the chief executive of the interdepartmental executive board’s servicing department (and that chief executive is not able to exercise those powers in respect of those employees). That is, although the employees are referred to as employees of the servicing department, in many respects in relation to individual employees, the interdepartmental executive board carries out the role of employer.

Clause 68 provides that the chief executive of a public service agency that is responsible for the employment of ministerial staff across all Ministers’ offices must have regard to the wishes of the relevant Minister when engaging ministerial staff. It also provides that clause 70, which relates to appointment on merit, does not apply to the appointment of ministerial staff. This clause replaces section 59(5) and part of section 66 of the Act. See also other existing exceptions regarding ministerial staff that are carried over in clauses 1, 4, and 5 of Schedule 8.

Clause 69 continues the existing process for review of appointments of public service employees. It replaces section 59(4) of the Act.

Clause 70 provides that when making an appointment under this Act, a chief executive or board must give preference to the person who is best suited to the position. This clause replaces section 60 of the Act.

Clause 71 sets out good employer requirements for departments and interdepartmental ventures. It is largely based on section 56(1) and (2) of the Act. Subclause (3) is new and sets out the responsibilities of departmental agencies and interdepartmental executive boards regarding the good employer requirements.

Clause 72 sets out functions of the Commissioner in relation to equal employment opportunities. This clause is largely based on section 58 of the Act.

Clause 73 is new, and sets out requirements on departments and interdepartmental ventures in relation to promoting diversity and inclusiveness. Subclause (2) sets out the responsibilities of departmental agencies and interdepartmental executive boards regarding the diversity and inclusiveness requirements.

Clause 74 sets out functions of the Commissioner in relation to promoting diversity and inclusiveness.

Clause 75 provides that the Employment Relations Act 2000 applies to the public service (subject to any exceptions in the Act). This clause replaces section 67 of the Act.

Clause 76 specifies who exercises the responsibilities of an employer in relation to personal grievances and disputes concerning public service employees. This clause replaces section 69 of the Act.

Clause 77 provides that the Commissioner is responsible for negotiating collective agreements that apply to departments and interdepartmental ventures. The collective agreements applicable to a department also apply to a departmental agency or an interdepartmental executive board for which the department is the host or servicing department. This clause replaces section 68(1) to (3) of the Act.

Clause 78 sets out further provisions in relation to collective agreements, including the required parties to the agreement and how it binds public service employers and employees. This clause replaces section 68(4) to (6) of the Act.

Clause 79 provides that the Commissioner may delegate the Commissioner’s functions to negotiate collective agreements. This delegation would be to a chief executive of a department or the board of an interdepartmental venture. This clause replaces section 70 of the Act.

Clause 80 is new and applies to a pay equity claim (as defined in subclause (6)) made by an employee or employees of a department or an interdepartmental venture. This clause would also apply to employees of a department who are carrying out the functions of a departmental agency or an interdepartmental executive board for which the department is the host or servicing department. The clause provides that the Commissioner may choose to be responsible for negotiations in relation to the claim. This applies until any time that the claim goes into mediation under the Employment Relations Act 2000 or proceedings in the Employment Relations Authority, a tribunal, or a court. After that point, the employer is, or employers are, the chief executive of each department and the board of each inter-departmental venture in which any of the employees are employed acting, if the Commissioner so requires, together with or in consultation with the Commissioner.

Clause 81 sets out further provisions relating to dealing with pay equity claims. Subclause (1) provides that if the Commissioner enters into negotiations in relation to a pay equity claim, the Commissioner must do so in consultation with the chief executive or board of each affected department or interdepartmental venture. Subclause (2) provides that the Commissioner may require any two or more chief executives or boards to negotiate a pay equity claim or pay equity claims in consultation with each other.

Clause 82 sets out who is bound by an agreement in relation to a pay equity claim that is entered into between the Commissioner and 1 or more public service employees, and who is responsible for implementing the agreement.

Clause 83 provides that the Commissioner may delegate the Commissioner’s functions regarding pay equity claims. This delegation would be to a chief executive of a department or to a board of an interdepartmental venture.

Clause 84 gives effect to the employment provisions set out in Schedule 8. These relate to—

• obligations to notify vacancies and appointments (clauses 1 and 4):

• review of appointments (clause 5):

• making acting appointments where an employee is absent or there is a vacancy in a position (clause 2)

• the manner of providing evidence of appointments (clause 3)

• the ability to request that an employee undergo a medical examination (clause 6):

• provisions relating to transfers of functions between Crown entities and public service agencies (clauses 7 to 10):

• superannuation schemes for employees of State services agencies (clauses 11 to 13).

Clause 85 is new and provides a power to transfer employees where there is a transfer of functions from one public service agency to another. It applies only in the specific circumstances set out in subclause (2). This clause is intended to avoid the need for employees to go through an offer and acceptance process in the cases to which the clause applies. Subclause (4) provides that the employment of an employee to whom this clause applies will be treated as continuous for the purpose of the statutory leave entitlements described in clause 90(1)(a) and (b) and the KiwiSaver scheme (see clause 90(1)(c)).

Clause 86 provides that an employee transferred under clause 85 is not entitled to a redundancy payment.

Clause 87 provides for other restrictions on redundancy payments where a public service employee has received a notice of termination by reason of redundancy and—

• is offered and accepts a position in a State services agency as described in subclause (1)(a); or

• is offered an alternative position in a State services agency as described in subclause (1)(b)

This clause is largely based on section 61A of the Act except for subclause (2). Subclause (2) provides that if an employee moves from a position in a department or an interdepartmental venture to a position in another department or interdepartmental venture the person’s employment will be treated as continuous for the purpose of the statutory leave entitlements described in clause 90(1)(a) and (b) and the KiwiSaver scheme (see clause 90(1)(c)).

Clause 88 provides that certain provisions of the Bill (relating to appointments on merit, obligation to notify vacancies, and review of appointments) do not apply where a person is transferred under clause 85 or moves position as described in clause 87(1).

Clause 89 is new. It provides that clause 90 applies if an employee moves from a position in one public service agency into a position in another public service agency. This clause applies to a person who chooses to move from one position in the public service to another. It also applies in the circumstances provided for by clauses 85 and 87. It is intended that this clause will come into force by Order in Council at a later date than the rest of the Bill’s provisions. This is to enable systems and processes to be aligned so that the relevant leave entitlements referred to in clause 90(1)(a) and (b) can effectively be transferred between public service agencies.

When this clause comes into force it will replace clauses 85(4) and 87(2), which will be repealed (see clause 110(2)).

Clause 90 is new and applies to employees as set out in clause 89. It provides that the employee’s employment (in the agency the employee moves from and in the agency the employee moves to) is treated as continuous in relation to the statutory entitlements to leave described in clause 90(1)(a) and (b) and the KiwiSaver scheme ( see clause 90(1)(c). Subclauses (2) to (5) set out details of how this works. This clause is also subject to any regulations made under clause 93.

Clause 91(1) provides that where clause 90 applies the agency an employee moves to is not liable for any failures by the agency that the employee has moved from (agency A) to comply with requirements about statutory entitlements to leave and the recovery of holiday pay or leave pay. Subclause (2) provides that the requirements of clause 90(2) about the transfer of leave entitlements do not affect the right of an employee to take action in respect of a failure by agency A to comply with the requirements described in subclause (1). The intention is that the obligation to remedy any failure by an agency to comply with the requirements specified in subclause (1) is intended to lie with that agency.

Clause 92 provides that the provisions of the Holidays Act 2003 restricting payment of annual holiday pay do not prevent payments of annual holiday pay if that payment is required by regulations made under clause 93(1)(b).

Clause 93 is a regulation-making power. Subclause (1)(a) and (c) authorise regulations to be made to effectively provide for the administration of the continuous employment requirement as set out in clause 90(1). Subclause (1)(b) provides for regulations to specify amounts of the annual leave entitlement in clause 90(1)(a)(i) (that is, annual leave under section 16 of the Holidays Act 2003) at or above which leave cannot be transferred under clause 90.

Clause 94 provides that a departmental agency (and not its host department) is responsible under the Health and Safety at Work Act 2015 in relation to workers who carry out the functions of the departmental agency.