Proposals to pay a public sector executive above the remuneration band

An employer must seek advice from the Tribunal when proposing to pay (or continue paying) an executive above the relevant remuneration band. This includes new appointments, reappointments, proposals to increase an executive’s remuneration following a mid-contract remuneration review, and during temporary appointments (such as ‘higher duties’). 

Employers are encouraged to seek the Tribunal's advice as promptly as possible, before any final decision is reached by the organisation's Board (or equivalent) and before any agreement is reached with an executive on their proposed TRP.

The Tribunal's view is that it is preferable that remuneration adjustments not be applied retrospectively, unless a particular effective date is required by a relevant government policy, or where exceptional circumstances apply.

Where an employer seeks the Tribunal's advice on an above the band remuneration proposal after that remuneration has already been paid to or contracted with the executive, the Tribunal's general position is that it will not provide advice in this circumstance.

Advice from the Tribunal must be sought prior to signing an executive’s employment contract.

A request for advice can either be submitted when:

• the executive is not known, such as prior to a recruitment process
• the executive is known, such as for a reappointment.

Where an employer has sought the Tribunal’s advice prior to a recruitment process (i.e. when the executive was not known), they must seek further advice from the Tribunal if they propose to pay the executive more than the amount previously advised by the Tribunal.

Not all circumstances that would result in an executive being paid (or continuing to be paid) above the relevant remuneration band require the Tribunal's advice.

The Tribunal's advice is not required:

• when adjusting an executive’s superannuation entitlement to comply with the Superannuation Guarantee (Administration) Act 1992 (Cth)
• where an executive has been reclassified to a lower classification under the Victorian Public Entity Executive Classification Framework during their current contractual term – however, the Tribunal’s advice is required if the employer proposes to reappoint the executive on a new contract and pay them above the relevant remuneration band.

Please contact the Tribunal Secretariat at enquiries@remunerationtribunal.vic.gov.au(opens in a new window) to confirm if advice is required.

The Tribunal must receive a completed form, including all mandatory information, before it will provide its advice on the TRP for an executive position.

Once the Tribunal receives a complete request, it will consider the information provided and all relevant supporting material.

The Tribunal may request further information from the employer if necessary to inform its consideration of the proposal. As part of its analysis, the Tribunal may also consider relevant information and benchmarking data provided by the Tribunal’s Secretariat.

The Tribunal provides its advice by way of a letter emailed to the employer and copied to the relevant contact officer.

The Tribunal must provide its advice within a reasonable time. The Tribunal aims to provide advice within 10 working days of receipt of a complete request (and earlier where practicable). If a request for advice is incomplete, or if the Tribunal requests additional information or clarification is needed from the employer, this may increase the time taken to provide advice.

An employer must consider the Tribunal’s advice when determining an executive’s total remuneration package, but is not required to adopt the Tribunal's advice.

The Tribunal’s advice is published on this website after being communicated to the employer. The published advice is redacted and does not include the name of the executive, the total remuneration package proposed by the employer or other remuneration information provided by the employer.

It should be noted that not all requests for advice result in an advice issued by the Tribunal. Requests might be withdrawn, superseded by new or amended requests, or not proceeded with by an employer.