Your organisation’s conflict of interest policy sets out the requirements that apply to its employees, including managers, in relation to conflicts of interest.
Usually, these include:
You must avoid conflicts of interest where possible.
But sometimes a conflict cannot be avoided.
If a conflict exists, you must:
If you are a manager with direct reports, you should also:
A conflict of interest exists if an employee has a private interest that could influence, or reasonably be seen to influence, how they perform their public duties.
The conflict can be actual, potential or perceived.
The private interest can be financial or non-financial, direct or indirect.
For details see the key definitions in our guidance.
Conflicts of interest aren’t always clear to those who have them.
Encourage your direct reports to seek advice from you if they’re unsure about a possible conflict of interest or the application of your organisation’s policy.
If you’re unsure of the advice to give, speak with your own manager or with a conflict of interest contact nominated in your organisation’s policy, such as the integrity manager. You could do this jointly with the employee who has come to you for advice.
Many employees have conflicts of interest during the course of their employment.
Part of your role in fostering a culture of integrity is to:
Once the employee has declared a conflict of interest, you will be responsible for developing and finalising a conflict of interest management plan.
Consult with the employee during this process.
Some organisations encourage their managers to have the employee put together the first draft of the plan, usually after an initial consultation with their manager.
In such cases, the manager is still responsible for either:
A conflict of interest management plan is a risk mitigation strategy. It balances the nature and seriousness of the conflict with the public benefit of the employee being involved in the matter.
Develop the management plan based on the risk mitigation strategies in your organisation’s conflict of interest policy.
Ensure that the plan is proportionate to the risk.
The strategies in your organisation’s policy will usually be similar to ‘the 5 Rs’ set out in our model policy, or a combination of them.
These strategies are listed from lowest to highest response level:
For details of these strategies see our guidance on key risk mitigation strategies.
The information below is general information based on the model conflict of interest declaration and management plan form we offer to organisations.
Your organisation’s form may differ from our model form. Follow your organisation’s form.
Even if your organisation’s form differs from our model form, the information below may be of general assistance to you in developing a plan.
This is where the employee fills out their details and those of their manager. Usually this will be their direct line manager. However, in some cases it will be the manager of a project or the chair of a panel, such as a recruitment panel.
Information about how to complete the form (for example, reminder information about the definitions to use) is set out at the front of the form.
This is where the employee:
These are some examples of the details an employee could insert to explain why they are filling out the form:
‘My private interest is XXX. It conflicts with my public duties because …’
‘I have a consensual personal relationship with another employee, AB. It is a conflict of interest because there is a direct hierarchical relationship, which is that ….’
OR
‘I have a consensual personal relationship with another employee, AB. There is no direct hierarchical relationship but a conflict of interest has arisen because ….
‘I have a declarable association.
My father, AB, is a member of XXX gang. He was recently charged with indictable offences relating to serious violence and drugs.
I have a conflict of interest. The relationship could reasonably be seen as having the potential to influence how l perform my public duties. This is because my work involves developing policy to reduce the use of illegal drugs in the community.’
‘l am a member of procurement panel XYZ. Consistent with our organisation’s procurement policy, l confirm that l do not have a private interest in any tenderer or bid.’
OR
‘l am a member of procurement panel XYZ. I am a former employee of firm B that is tendering.’
‘I am a panel member for the recruitment of position no. PQR. Applicant A works in my team. I have a perceived conflict of interest.’
OR
‘I am a panel member for the recruitment of position no. PQR. I have no conflict of interest as a panel member.
‘I intend to undertake outside employment consistent with the outside employment policy. I confirm that l do not have a conflict of interest between my public duties and my proposed outside employment, which relates to XXX’.
OR
‘I am currently engaged in outside employment consistent with the outside employment policy. But a conflict of interest has arisen because …’
‘I intend to enrol as a candidate in the forthcoming state election’
OR
‘I have been elected as an office bearer (Secretary) to the X party.
‘I have been directed to complete this form due to a conflict of interest noted on a DOPI form l recently submitted, dated XXX. The conflict is that …’
‘My manager directed me to complete this form because l’ll be assessing applications for the XYZ grants program. I’m not aware of having links to any potential applicants, but as the grants are highly sought after, I will advise my manager and update this form if the situation changes'.
If an employee declares a conflict of interest, determine whether, in your opinion, they have one. Your determination may differ from your employee’s assessment. Similarly, they may determine that they do not have a conflict of interest. But your assessment may differ.
Base your decision on:
If you need further information to decide, ask your employee. Ensure they add this extra information on the form as a written record.
If you’re uncertain about any aspect of your proposed decision, seek assistance from your own manager or a contact listed by your organisation, such as the Integrity manager.
Whether the employee has a conflict of interest (actual, potential or perceived) will depend on the definition of a conflict of interest in your organisation’s policy.
To help identify a conflict of interest, some useful questions are:
If you determine that a conflict exists, develop a management plan and record it on the form. Remember to:
Remember that ultimately you, not the employee, are responsible for determining the contents of the management plan.
Your organisation’s policy will set out its key risk mitigation strategies. Choose a suitable strategy or combination of strategies. See more about the key risk mitigation strategies.
These are likely to be similar to those listed below from lowest to highest response level.
A management plan should be proportionate to the level of risk. A conflict does not automatically exclude the employee from performing the relevant duty.
A recruitment panel member has a conflict if they work with an applicant. If the conflict is perceived, not actual, a suitable management plan may be to record and monitor the conflict.
Other panel members would be advised. They would monitor the risk level and support impartial decision-making.
If the risk level rises, other strategies may need to be put in place (such as restrict or remove).
The risk of having a conflict of interest and the level of risk the conflict poses will depend on a mix of factors such as:
We offer a list of typically higher risk areas of conflict of interest. Your organisation may have already determined its own specific areas of higher risk.
It is important that the conflict should be managed proportionate to the level of risk. In deciding what is a proportionate response, consider the combined effect of the above risk factors.
For example, your organisation is a regulator. But the employee with the conflict works in a very junior role with little or no capacity to influence or make decisions. This would be a much lower risk than if they worked in a senior role that exercised discretionary powers of the regulator.
Sometimes, an issue may arise as to whether the proposed risk mitigation strategy is consistent with human rights and anti-discrimination obligations.
If this occurs the matter should be addressed on a case by case basis, as each situation and risk level will differ.
If unsure seek advice, for example from:
Some questions that can help you identify the level of risk a conflict of interest poses and determine a proportionate response are:
Although consultation should occur with the employee, the decision about what to include in the plan is ultimately your decision as manager, not the employee’s decision.
You are responsible for ensuring the plan is in the public interest.
At times, this means you may determine a plan that the employee does not agree with. If it looks as if it will occur, we suggest you discuss your proposed plan with your manager or other person nominated in your organisation’s policy – such as the Integrity manager.
This will:
Part D of the plan enables you to easily record whether you agree with the employee’s assessment if they have a conflict and why you have chosen the decision you made.
The employee signs their declaration first.
You then sign your declaration.
The plan is finalised and commences on the date you sign it as manager.
After you finalise and approve the management plan:
This part of the form is completed by you as manager.
You must review the plan:
The employee must notify you of any such change they are aware of.
There may also be changes that you, as a manager, are privy to but the employee is not aware of. Also review the plan in these circumstances.
When an existing plan is reviewed and finalised, record the date in this part of the form.
This becomes the date of the current plan.
Also record the outcome of the review as either:
Lodge the reviewed plan as an official record, send the employee a copy, and keep a copy yourself.
Prepare a new plan if there are any updates to the existing plan when it is reviewed.
Preparing a new plan ensures that the full details of the earlier plan are preserved for the time period it applied.
To prepare a new plan, copy the existing plan and make any changes on the copy.
The existing plan applies while the new plan is being developed.
The new plan is finalised and commences on the date the manager signs the declaration.
If the conflict of interest itself finishes, also record this in part F.
Follow the confidentiality requirements in your organisation’s policy. For some private interests, such as if an employee declares a personal consensual relationship, your organisation may have additional confidentiality requirements in place.
Your organisation must treat information and administer its policy in accordance with all relevant laws and other obligations, such as:
For example, the Declaration and management plan form will have a collection notice in Appendix 1.