Contract for Services Policy

1. Purpose

The Contract for Services Policy outlines the procedures to be followed in determining the nature of

engagement, and the subsequent relationship, between the University and its contractors.

The purpose of this Policy is to:

(a) Ensure the appropriate use of contractor labour within the University;

(b) Limit spend and dependence on contractors through the use of permanent employees

and effective resource planning;

(d) Develop and retain the knowledge and intellectual property rights internally; and

(e) Ensure the correct classification of people as employees or as contractors so as to

minimise the risk of a person’s status being challenged.

2. Application of Policy

a) This Policy applies to all contractor engagements. This Policy applies New Zealand Residents

for tax purposes.

Policy Content

3.1 Principles

(a) The Contract for Services Policy and Procurement Policy cover Contractors, whereas

Contracted Suppliers are covered by the Procurement Policy.

(b) In principle a Contractor should not be undertaking a core activity of the University (for

example: teaching, tutoring, curriculum development, and research work); or performing

services exclusively for the University (see Appendix A: Status Criteria), which also applies

to former staff who have resigned applying to contract back to undertake similar work.

annually.

3.2 Policy

(a) The engagement of a Contractor may include the following circumstances:

(i) The provision of specialist professional services for projects;

(ii) Where a School or Central Service Unit has short-term staffing needs that are unable

to be met by other staff or fixed term appointments;

(iii) The provision of specific one-off services; and

(iv) Academic contracts such as for the delivery of lectures by adjuncts, guest

speaker/lecturers, or specialist professionals (refer Adjunct and Visiting Staff Policy).

(b) The following persons and entities will not be engaged under a Contract for Services:

(i) A current Employee of the University, as any additional work should be managed

using a variation to a contract of service;

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(ii) A former Employee of the University who retired, was dismissed or was made

redundant (aligned to the value of the redundancy payment).

3.3 Engagement Process for Contractors

(a) Subject to those services awarded after following an appropriate process (refer Procurement

Policy) such as with the approval of the Tender Panel, the Manager must ensure that before

offering an assignment to a Contractor:

(i) The proposed engagement does not give rise to any conflict of interest, which is

documented;

(ii) Satisfactory references for the Contractor have been obtained in keeping with the

Conflicts of Interests Statute; and

(iii) Approval for the engagement has been reviewed by the Senior Leadership Team (SLT)

Appointments Committee where the total/ combined value in any given year is $50K

or more.

(b) Where appropriate, a personal credit check and/or a criminal conviction history check will

be undertaken.

3.4 Determining Status of the Person or Entity

(a) A Manager who wishes to engage a person or entity to provide services to the University must

complete the Status Criteria Table in Appendix A to determine if they should be an Employee

or a Contractor.

(b) Subject to clauses 3.2 and 3.3, if it is determined that the person or entity should be engaged

as a Contractor, the person or entity will be offered a Contract for Services in accordance

with this policy.

or entity will be offered an employment agreement in accordance with the recruitment and

selection procedure as outlined in the HR Toolkit.

3.5 Contract Terms and Tenure

(a) A properly executed Contract for Services (refer Appendices C & D), signed by a Head of

School or Central Service Unit Manager (or more senior manager) with the requisite

delegated authority1, must be in place before the agreed services are commenced unless:

(i) The work to be performed is of a professional advisory nature, and the Contractor has

been previously engaged by the University where a letter of understanding exists in

which case a written contract will not always be necessary; and

(ii) The value of the services being provided is up to $50K, and no conflicts of interest,

where:

Up to $500 no documentation is required (within delegated authority and with a

itemised receipt);

From $501 to $2,000 there has been selective procurement (pre-Qualified

suppliers – note: refer to Finance list and add where appropriate); and

From $2,001 to $50K there is written quotation.

(b) Any modification of substance to the Contract for Services templates, for Contractors, must

be expressly approved by the University’s Employment Relations Manager.

approved by the SLT Appointments Committee or a member of the Senior Leadership Team.

(d) The Manager will retain and provide adequate records to document the transaction

including, but not limited to the Contract for Services, letter of engagement, Status Criteria

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Table and evidence of insurance cover for contracts over $100K and where appropriate

below this value.

3.6 Payment for Services of Contractor

(a) Whenever possible, a Contractor who has an hourly rate of $100.00 or more, or is required

to work five (5) hours or more on any given day will be engaged on a daily rate.

(b) The Manager will determine whether or not the Contractor is subject to withholding tax in

accordance with Appendix B.

(i) Forward the following documents to HR Payroll upon receipt of the signed contract

from the Contractor:

Signed Contract for Services

Letter of engagement (verification of work visa where required)

Status Criteria Table

IR330 Tax Code Declaration.

(ii) Forward any invoices from the Contractor to HR Payroll immediately upon receipt.

Note: the Contractor’s details and tax invoice details must match.

(d) Where the Contractor is not subject to withholding tax and is or is not a registered company

or a partnership, the Manager will forward the following documents to the Payments

Team upon receipt of the signed contract from the Contractor:

(i) Signed Contract for Services

(ii) Letter of engagement (verification of work visa where required)

(iii) Status Criteria Table

(iv) Invoices (as these arrive).

(e) No advance payment to a Contractor will be made for services to be rendered, before the

contract period, except as expressly approved by or a member of the Senior Leadership Team

or the University’s Employment Relations Manager.

3.7 Contract Management

(a) Contractors are engaged to meet specific business requirements and must be well managed.

(b) The Manager is responsible for ensuring that:

(i) The Contractor is properly inducted and appropriate access provided (such as with

IT), particularly in regard to the University’s health and safety (refer Contractor

Health & Safety Guide) and ITS policies and procedures; and

(ii) All University property in the Contractor’s possession is returned before the term of

the Contract for Services expires.

4. Definitions

In this Policy, unless the context otherwise requires:

Contractor means a person or entity engaged by the University to

perform work under a Contract for Services.

Contracted Supplier means a supplier that has been awarded a contract with the

University after a competitive tender process. (Refer to

Procurement Policy)

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Employee means a person employed by the University to perform

work for hire or reward under a contract of service.

Letter of Understanding means a high-level document that sets out the nature of the

business relationship the University may want to have with

a person or entity (invitation to treat) for goods and/or

services such as with legal or recruitment services.

New Zealand tax resident refers to persons who have been in New Zealand for more

than 183 days in any 12-month period, or you have an

“enduring relationship” with New Zealand, or you are away

from New Zealand in the service of the New Zealand

government (refer IR292).

Manager means an employee who has the delegated authority, as set

out in the Delegation Statute, to engage a Contractor on

behalf of the University.

Short term means a period of time less than 12 months.