Div 2Executives

Division 2—Executives 42—Conditions of executive's employment (1) The employment of a person as an executive employee of a public sector agency is to be subject to a contract made between the employee and the agency. (a) that the employee is employed for a term not exceeding 5 years specified in the contract; and (b) that the employee is to meet performance objectives as set from time to time by the agency. (3) Subject to the regulations, the contract may make any other provision considered appropriate, including provision excluding or modifying a provision of this Act. (4) The decision whether to engage the employee for a further term must be made and notified to the employee not less than the prescribed period before the end of the employee's current term of employment. (5) In this section— prescribed period means— (a) if the contract is for a term of 5 years—6 months; (b) if the contract is for a term less than 5 years—the period determined by applying to the period of 6 months the proportion that the number of months in the term of the contract bears to 60 months. 43—Resignation of executives An executive employee of a public sector agency may resign by not less than 8 weeks notice in writing to the agency (unless notice of a shorter period is accepted by the agency). 44—Termination of executive's employment by notice (1) A public sector agency may, by notice in writing, terminate the employment of an executive employee of the agency without specifying any grounds. (2) Subject to the contract relating to the employee's employment, if the employee's employment is terminated by the agency by notice under subsection (1), the employee is entitled to a termination payment of an amount equal to 4 months remuneration (at the rate determined for the purposes of this subsection under the employee's contract) for each uncompleted year of the employee's employment (with a pro rata adjustment in relation to part of a year) up to a maximum of 16 months remuneration. (3) The period of notice under subsection (1) must be at least 4 months except where the employee is compensated by payment of an amount equal to the remuneration that would have been payable during the balance of the period of 4 months (at the rate determined for the purposes of this subsection under the employee's contract). (4) The power conferred by this section is in addition to the power to terminate an executive employee's employment under section 54.