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Part 1 - APS Policy

Contents

Section 1 – General

Introduction

  1. The APS Policy sets out the Australian Government’s workplace relations policy as it applies to APS agencies and their employees.
  2. This Section of the APS Policy sets out general principles applicable to APS agency arrangements. This Section of the Policy also applies to a non-APS agency that participates in APS service-wide bargaining.

Purpose

  1. The Government expects the public service to be a model employer and employer of choice, in order to best facilitate the delivery of services to the Government, Parliament and community.
  2. The APS Policy continues the Government’s commitment to genuine service-wide bargaining, with central bargaining for Common Conditions (Part A) and agency-level enterprise bargaining to be led by individual agencies (Part B).
  3. The APS Policy continues the Government’s intention to reduce fragmentation of pay and conditions across the APS over time.
  4. The Government is committed to providing pay increases for APS employees which are underpinned by productivity growth and delivered through fair and genuine negotiations between employers, employees, and unions.

Coverage and application

  1. Exemptions to the APS Policy, in whole or part, will only be considered in exceptional circumstances.
  2. An exemption request must be assessed by the Australian Public Service Commission (APSC). Any exemption to the APS Policy must be supported in writing, by the relevant agency’s responsible Minister, and approved by the Minister for the Public Service.
  3. The APS Policy does not cover Government Business Enterprises, which are to refer to clauses 67 to 74 of the Non-APS Policy.

Approvals

  1. The APS Commissioner is responsible for the approval of all collective workplace arrangements for consistency with the Policy. This includes collective arrangements made in response to Machinery of Government changes as determined by the Government from time to time.
  2. Agency Heads must provide a draft collective workplace arrangement to the APS Commissioner for approval prior to tabling a final version with employees and their representatives.
  3. Agency Heads and the APSC are jointly responsible for ensuring that all collective workplace arrangements are consistent with relevant legislation, including the Fair Work Act 2009 (FW Act).

Industrial disputes

  1. Agencies must consult with the APSC if there are significant industrial issues or proceedings at the workplace level. This includes:
    1. applications or proceedings in the Fair Work Commission in relation to bargaining
    2. emerging or actual industrial action
    3. significant or collective disputes arising under the terms of an enterprise agreement
    4. disputes about the interpretation or application of a Common Condition.
  2. Agencies must consult with the APSC on legal advice concerning a common condition in accordance with guidance issued by the APSC from time to time.

Section 2 – Service-wide Bargaining

Coverage and application

  1. This Section of the APS Policy applies to:
    1. APS agencies and their employees, unless they are covered by Section 3 of the APS Policy, and
    2. any other non-APS agency and its employees, where the agency has requested to be included in service-wide bargaining and the APS Commissioner has approved the request.
  2. Where an APS agency has dual staffing powers (that is, they employ employees under the Public Service Act 1999 and legislation other than the Public Service Act 1999 ), and is seeking to cover APS and non-APS employees under the same enterprise agreement, this Section of the APS Policy will apply to the negotiation of that enterprise agreement.

Principles and objectives of service-wide bargaining

  1. Bargaining in the APS will have regard to the Principles and Objectives of Service-Wide Bargaining (the Principles).
  2. The Principles include:
    1. Being a model employer
    2. A unified, capable and contemporary Commonwealth Public Service
    3. Mobility, attraction and retention
    4. Administrative efficiency, productivity and supporting delivery of public services to Australian people and business
    5. Fairness and equity, and
    6. Sustainability.
  3. A comprehensive statement of the Principles and Objectives for service-wide bargaining is at Attachment A.

Service-wide bargaining

  1. Agencies covered by this section must participate in service-wide bargaining for enterprise agreements to cover their non-SES employees.
  2. Bargaining will involve:
    1. Part A service-wide bargaining for Common Conditions to be led by APSC representatives as the employer bargaining representatives, and
    2. Part B agency-level enterprise bargaining to be led by individual agencies.
  3. When instructed by the APSC, Agency Heads will:
    1. inform employees that the Part A service-wide bargaining process will be led by the employer bargaining representative to negotiate APS Common Conditions, and
    2. appoint APSC representatives as nominated by the APS Commissioner as an employer bargaining representative for their enterprise agreement, during the course of service-wide negotiations.
  4. The APSC will:
    1. seek to bargain Common Conditions
    2. negotiate in good faith with all union and employee/individual bargaining representatives
    3. respond to claims within a reasonable timeframe via appropriate methods, taking into account the nature and circumstances of the claim
    4. provide regular updates to agencies concerning the progress of service-wide bargaining
    5. seek views from agencies on agency operational requirements during negotiations
    6. issue guidance from time to time on matters referred to Part B agency-level bargaining
    7. at the conclusion of service-wide bargaining, release a new Statement of Common Conditions (the Statement) as an outcome of negotiations, and
    8. provide agencies policy guidance on implementation of the Statement in agency-level bargaining.
  5. Agencies will:
    1. facilitate communication from the APSC with their employees
    2. respond in good faith to claims that are outside the scope of Part A service-wide bargaining, as determined by the APSC
    3. handle claims from self-appointed or union bargaining representatives in accordance with processes advised by the APSC
    4. assist the APSC with requests for information such as data, views to assess claims and any other reasonable request from the APSC to progress bargaining, including information to be provided to unions and bargaining representatives, and
    5. develop policies consistent with bargained outcomes and intentions.
  6. The Statement will include:
    1. a list of Common Conditions and negotiated clauses or principles
    2. a list of conditions referred to Part B agency-level bargaining and any negotiation parameters, and
    3. a list of conditions that are to be maintained or not included in agreements this round of bargaining.

Common Conditions

  1. Agencies will bargain agreements that incorporate the Common Conditions that have been negotiated as listed in the Statement.
  2. The Statement will be published on the APSC website at the conclusion of service-wide bargaining, at a time to be determined by the APSC.
  3. Agencies will offer pay increases in proposed enterprise agreements that are consistent with the outcome of service-wide bargaining.
  4. Exemptions to the Statement may be agreed by the APS Commissioner in exceptional circumstances.
  5. Where the bargaining parties are unable to reach agreement on a Common Condition in this round of service-wide bargaining, this will be reflected in the Statement of Common Conditions. Agencies may not agree to any change to these conditions without the approval of the APS Commissioner.
  6. In considering proposals under clauses 29 and 30, the APS Commissioner will have regard to:
    1. consistency with the APS and the impact on future commonality
    2. the agency’s operational requirements
    3. the views of unions and other bargaining parties
    4. possible impact on other Commonwealth employers
    5. broader community standards.

Agency-specific conditions and remuneration

  1. Agencies may bargain conditions specific to the unique operational requirements of their agency, subject to guidance from the APSC.
  2. Agencies are not to bargain new arrangements which seek to provide an additional pay increase to a cohort of employees outside of a general pay increase, including through paying fringe benefits tax.
  3. If an agency wishes to introduce a new condition, amend or remove an existing condition that is not covered by the Statement of Common Conditions, the agency must discuss with the APSC in the first instance. Approval from the APS Commissioner may be required.

APS-wide human resources policies and circulars

  1. From time to time the APSC may issue circulars under the APS Policy which deal with matters not considered in service-wide bargaining, or provide guidance or interpretation around the application of Common Conditions or remuneration.
  2. The APS Consultative Committee will discuss matters pertaining to the employment relationship as appropriate, in accordance with its terms of reference.

Section 3 – Common law arrangements

  1. This Section applies to APS agencies that set non-SES terms and conditions of employment using common law arrangements, and their employees.
  2. The usual method of setting terms and conditions is through collective bargaining, with common law arrangements to only be used in limited circumstances.
  3. However, APS agencies that have an established practice of using common law arrangements to provide terms and conditions for employees may continue to use common law arrangements, subject to consultation with the APSC.
  4. Remuneration increases provided to employees covered by common law arrangements must be consistent with remuneration increases provided for employees covered by enterprise agreements.
  5. Agencies with common law arrangements in place are to apply Common Conditions in the Statement, as appropriate, through the terms of the arrangement or associated agency policy documents.
  6. Agencies must notify the APSC at least 30 days in advance of making proposed changes to their common law arrangements to increase remuneration or enhance terms and conditions.
  7. Agencies must provide the APS Commissioner with information on request regarding outcomes under individual common law arrangements.

Section 4 – SES and equivalent employees

  1. This Section applies to APS agencies and their Senior Executive Service (SES) and equivalent employees.
  2. Agency Heads are to take all practical steps to moderate the growth of SES total remuneration, including steps to ensure that SES total remuneration does not increase at a greater/faster rate than non-SES remuneration.
  3. Agency Heads are responsible for ensuring terms and conditions for SES and equivalent employees are consistent with the APS Policy, the Executive Remuneration Management Policy and advice or guidance issued by the APS Commissioner.
  4. SES and equivalent employees, as the key senior leaders in the public service, are not generally covered by enterprise agreements or other collective workplace arrangements.
  5. Generally, terms and conditions for SES and equivalent employees are set using individual arrangements such as common law arrangements or individual determinations under subsection 24(1) of the Public Service Act 1999 .
  6. The Agency Head is responsible for ensuring SES pay increases are underpinned by productivity growth and represent fiscally responsible use of taxpayer money, in line with community expectations.
  7. The final general pay increase of up to 3.4 per cent available under the 2023 Commonwealth pay offer may be paid to SES employees in accordance with the terms of their individual determinations under s24(1) of the Public Service Act 1999 and common law arrangements. Agency Heads are to apply restraint in other individual remuneration adjustments.
  8. Agency Heads should not provide SES employees further general pay increases beyond the third general wage increase from the 2023 Commonwealth pay offer before non-SES employees in the relevant agency have had a chance to vote on the agency’s proposed enterprise agreement.
  9. Subject to any APSC guidance, Agency Heads are not to introduce any new SES remuneration arrangements or make adjustments to current SES remuneration arrangements such as SES salary bands, increment structures or accelerated salary advancement arrangements.
  10. The APS Commissioner will issue further advice on the Government’s SES remuneration and conditions parameters to be implemented by Agency Heads once Part A service-wide bargaining has concluded.
  11. Workplace arrangements for SES and equivalent employees are not to include provisions which provide a redundancy benefit or similar type of payment to persons whose employment is terminated involuntarily under section 29 of the Public Service Act 1999 .
  12. Workplace arrangements for SES and equivalent employees will not include retention period arrangements for excess employees.
  13. Agencies must provide the APS Commissioner with information on SES and equivalently classified employee’s remuneration on request.
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Acknowledgement of Country

The APSC acknowledges the Traditional Custodians of Country throughout Australia and recognises the continuing connection to lands, waters and communities. We pay our respect to Aboriginal and Torres Strait Islander cultures and to Elders both past and present.