Reducing ‘post separation employment’ integrity risks

Risks are higher when the new employer is a non-government organisation that:

• operates in a similar field, is a public and private partner, or competes commercially with the public authority
• receives contracts, funding, loans or similar from or through the public authority
• comes under the licensing, regulatory or auditing authority of the public authority
• engages in lobbying ministers, members of Parliament or government agencies.

When an employee is still employed at the public authority, risks may include:

• the employee using their position to influence decisions or draw out information and advice in favour of the potential new employer
• the employee revealing confidential, sensitive or official government information to their new employer, or providing intellectual property or other information that would give the new employer an advantage when dealing with the public sector, and a competitive advantage in the marketplace

After an employee has left the public authority, risks may include:

• the former employee using their knowledge of the public sector and their networks to lobby or seek advantage for their new employer in dealing with the public sector
• public sector colleagues providing the former employee more (or less) favourable treatment in their professional dealings, such as licensing, regulatory compliance and auditing, on the basis of a personal relationship with the former employee.

Public authorities should have plans and strategies in place to identify and manage risks, reduce conflict of interest, and protect confidential information. Plans and strategies should include:

• a risk management framework that identifies and addresses risks related to post separation employment
• a policy and procedure framework as a proactive measure
• communication and capability strategies to effectively implement policies and make them easy to understand
• contract arrangements that incorporate protective measures where appropriate
• measures to address risks, specifically for when an employee is offered private sector employment or leaves the public authority.

Public authorities should also assign roles and responsibilities to managers who can:

• oversee and address integrity risks
• oversee the management of and address conflicts of interest
• identify and manage issues associated with post separation employment

Download the post separation employment checklist to help you identify integrity risks during an employment tenure.

Every public authority should have a policy framework in place that includes:

• a standalone policy (if required) on post separation employment or at minimum a checklist of actions to be taken at separation
• information management policies and procedures outlining all requirements to protect confidential information, including information access and authorised disclosure
• appropriate technical system access controls, such as monitoring the employees access leading up to separation
• a code of conduct that covers post separation employment risks, such as information access and authorised disclosure, conflicts of interest and requirement to notify employer
• an interest register, especially for high risk functions or situations
• a conflict of interest policy and register that contains enough information to mitigate potential or actual conflicts of interest
• induction training that covers ethical conduct, integrity, security rules and instructions
• business practice documents for internal and external stakeholders. For example, within a certain time period after leaving the public sector, use contractual measures to outline any restrictions of a former employee's involvement in projects.

The public authority’s policy framework for managing the risks associated with post separation employment should be in place and operating effectively to boost the public authority’s response. The essential elements include:

• a standalone policy (if required) on post separation employment, or at least a checklist of actions to be taken at separation
• information management policies and procedures, outlining all requirements for the protection of confidential information, including information access and authorised disclosure
• appropriate technical system access controls, including enabling monitoring of access leading up to separation
• code of conduct which covers issues relevant to post separation employment, such as information access and disclosure, conflict of interest, requirement to notify employer etc.
• interest register, especially for high risk functions or situations
• conflict of interest policy and register, which covers any requirements to notify any potential or actual conflicts of interest
• induction training, which covers ethical conduct, integrity, security rules and instructions
• business practice documentation for internal and external stakeholders (e.g. contractual measures which outline any restrictions to former public officer involvement in certain projects within a certain time period after leaving the public sector).

Criminal Code Act Compilation Act 1913:

• Section 81 refers to the offence of disclosing official secrets and unauthorised disclosure by former public servants.

• Section 83 refers to the offence of corruption where a public sector employee acts without lawful authority, or a reasonable excuse upon any knowledge or information obtained by reason of office or employment, to obtain a benefit or detriment.

Integrity (Lobbyists) Act 2016:

• Section 14 prohibits a senior public sector executive from registration or listing as a lobbyist within 12 months of holding their public sector role.

Use these resources for more guidance and speak to your manager, legal, human resources or risk management team:

• Organisation for Economic Co-operation and Development, Post-public employment: good practices for preventing conflict of interest
• Government of Canada, Policy on Conflict of interest and post-employment and Application Guide for Post-Employment under the ‘Policy on Conflict of Interest and Post -Employment’.

For further advice telephone our Integrity Advisory Service on 6552 8888 or email integrity@psc.wa.gov.au

These resources and publications were used to develop our downloadable Post separation employment fact sheet:

• Crime and Corruption Commission, Queensland, Post separation employment
• Independent Commission against Corruption, NSW Post separation employment webpage
• Australian Public Service Commission, Circular 2007/3: Post Separation Employment: Policy Guidelines (Archived)
• Australian Public Service Commission, Post-separation employment guidelines.