In 2019, my Department published a revised template contract of employment for appointments of CEOs of Commercial State Bodies (CSBs). The template contract has been endorsed by the Office of the Attorney General. The template contract provides the basis for the terms and conditions of employment for CEOs of CSBs and may be subject to further legal advice on behalf of the CSB and the proposed Chief Executive Officer.
Under the Code of Practice for the Governance of State Bodies – Remuneration and Superannuation Terms, the terms and conditions of the Chief Executives of CSBs, are subject to approval by the relevant Minister with my consent as Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation. This template contract of employment ensures that standard contractual terms are applied to CEO posts in CSBs.
Section 10 of the template contract of employment relates to complaints and assistance in ligation. Section 10 does not distinguish between the type of complaint received except in certain instances relation to legal costs arising from a complaint. Section 10 provides that where a complaint is made against the CEO, the Company shall take over the reasonable costs of the defence, save where a complaint is made by the Company Board.
Where the company takes over the costs of the defence, the contract also requires the CEO to comply with any reasonable requirements made by the Company in relation to any complaint made against him/her concerning his/her conduct or performance as Chief Executive and to co-operate in any process constituted to deal with such complaint. The contract also provides that the Company will take over the reasonable costs of the defence or recoup the CEO’s reasonable legal expenses when the action has been concluded, provided that a) an examination of all the circumstances (including the outcome of such process) establishes that he/she acted bona fide in the execution of his/her duties, and b) did not act with gross negligence or gross neglect of his/her duties.
The wording of the template contract of employment is clear in terms of the application of Section 10. There are currently no plans to revise the template contract of employment, however as with all policy areas, it is periodically reviewed.
