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Research & Research Study

Staff Consultancy

  1. Introduction
  2. Definitions
  3. Implementation
    1. Overview
    2. Private Consultancy
    3. University Based Consultancy
    4. Waivers
    5. Application
    6. Non-Compliance
    7. Determination of Disputes

  1. Introduction

    1. These provisions apply to all Full Time Staff Members and Part Time Staff Members whose fractional appointment is at a time fraction of 0.8 or above.
    2. The University accepts that consulting by staff is both appropriate and beneficial. However, limitations need to be imposed on the nature and extent of these activities in the interests of the University and its community of scholars and students.
    3. These limitations are expressed as overall guidelines rather than detailed rules covering specific consultancies.
    4. The University must ensure that:
      • The work will not impinge upon the satisfactory performance of the normal responsibilities of a member of staff
      • University resources are not used without prior approval and without full compensation to the University
      • The principles of competitive neutrality are observed such that a subsidised service is not provided to the client
      • Relevant activities are included in the research data collection of the University and thus earn research quantum for the University
      • The activity is not injurious to the reputation of the University
      • The University is protected from vicarious liability in any legal action arising from the outside employment activities
      • The activity does not create a conflict of interest for the staff member
      • The University does not become liable to pay Goods and Service Tax (GST) on revenue earned by staff in private consulting.
    5. The University places great reliance on the judgment and integrity of its staff to ensure that consultancies are undertaken responsibly. However, because of the potentially serious implications of consultancies, they must have prior approval.
    6. The manner and extent to which the staff member may engage in consultancy depends on the category in which it falls: Private Consultancy, University Consultancy or Community-based Consultancy. Strict conditions attach to private consultancy such that it is expected that most consultancies will be conducted through the University or through a University company.
    7. The approval of all Private Consultancy is vested in the Deputy Vice-Chancellor (Research). Approval will be given only in exceptional cases.


  2. Definitions

    The following words shall have the meanings given below for the purpose of this Policy:

    “Consultancy”
    means the provision of professional services to an external party for a fee or other consideration. It includes research and development activity.

    The Policy embraces two categories of Consultancy:
    Private Consultancy; and University-based Consultancy. For the purposes of this Policy, the latter is further divided into University Consultancy and Community Service Consultancy.

    “Private Consultancy”
    means Consultancy undertaken for remuneration or other consideration by a staff member in his or her personal capacity as an individual or through a partnership, private company, trust, or any similar entity, as opposed to in his or her capacity as an employee of the University. Directorships and Partnerships are included in this category, as is part-time employment with external organisations.

    “University-based Consultancy”
    comprises University Consultancy and Community Service Consultancy and includes all professional activity requiring the use of the University’s name, services, space, facilities, equipment or paid work-time.

    • “University Consultancy” constitutes the main type of Consultancy. It is the provision of professional services and products to external parties for remuneration or other consideration. It includes teaching services provided to other organisations.

    • “Community Service Consultancy” is consultancy that is undertaken for charity, community or a public purpose by staff members in their capacity as University employees or using University resources where such activities involve minimal or no risk of litigation. Where this low risk requirement is not met the activity concerned is to be treated as University Consultancy.

    Typical examples of Community Service Consultancy are lectures and tutorials for a not-for-profit community organisation; membership of review committees at other universities; strategic planning for community groups; design of a community attitudes survey for, say, a local branch of a Lions Club; examination of theses; commissioned creative works or performances and professional advice, involving minimal or no risk of litigation, rendered to a community group or agency. Activities undertaken for similar purposes or groups but involving significant risk of litigation will be governed by the conditions applying to University Consultancy. Examples of activities in this category could be biochemical analysis for a hospital or waste-water analysis for an environmental group.

    Activities such as Staff Members serving on the Board of a Government Agency or equivalent are also considered as Community Service Consultancy.

    “University Company”
    means a company wholly owned by the University and nominated by the University for the purpose of consultancy activity. The eligible companies are: Macquarie Research Ltd, CMBF Ltd and Macquarie Graduate School of Management Pty Limited.

    “Contracted through a University Company”
    means the University enters into an agreement to provide the necessary services to the University Company for an agreed cost and the University Company in turn enters into a consultancy contract with an external party to supply those services for remuneration or other consideration. Staff Members providing services to the University Company on the University’s behalf may receive remuneration from the University Company either directly as an individual or by payment to some other appropriate structure such as a private company.

    “Full Cost Recovery”
    means full cost recovery as informed by the principles of the AVCC and the Trade Practices Act, and specifically refers to the recovery of all direct and indirect costs associated with the consultancy including overheads of central administration, Division and any University Company.

  3. Implementation

    The Head of the relevant Division or Office is primarily responsible for monitoring consultancy activity, providing guidance to staff regarding consultancy classification and endorsing applications to the Deputy Vice-Chancellor (Research) or through a University controlled entity, as appropriate.

    The Deputy Vice-Chancellor (Research) has overall responsibility for monitoring implementation and operation of the policy.

    The Vice-Chancellor has final authority for approving alterations to this Policy Statement.

    1. Overview

      1. All consultancy by staff members of the University is governed by this Policy. This includes research and development work undertaken for external parties.
      2. The Policy embraces two categories of Consultancy: University-based Consultancy and Private Consultancy.
      3. Private Consultancy may be undertaken by a staff member only with the specific written permission of the Deputy Vice Chancellor (Research). Such permission may be given either for a specific consultancy or for a class of consultancy activity, as the need dictates.
      4. University-based Consultancy is considered under two sub-categories: University Consultancy and Community Service Consultancy. Separate conditions and protocols attach to each of the sub-categories:
        1. University Consultancy must be contracted through a University Company.
        2. Community Service Consultancy must involve little or no risk of litigation and is contracted directly through the University.

    2. Private Consultancy

      Private Consultancy may be undertaken by a staff member only with the specific written permission of the Deputy Vice-Chancellor (Research) upon the recommendation of the relevant Head of Division or Office. Such permission may be given either for a specific consultancy or for a class of consultancy, as the need dictates. The University must be satisfied that the Private Consultancy will neither be a real nor potential conflict of interest with or be contrary to the best interests of the University.

    As noted in the definitions, Private Consultancy includes Directorships and Partnerships. Staff members must obtain approval under this category (noting that some conditions may be waived) prior to entering into a partnership, accepting the Directorship of a company, or being involved in the affairs of a Trust for purposes of engaging in consultancy, other than family affairs and not-for-profit charitable companies. Activities such as staff members serving on the Board of a Government Agency or equivalent are considered as Community Service Consultancy.

    Staff Members should apply for permission to carry out a Private Consultancy on the standard form (below) and they will need to verify that all of the following requirements are met:

    1. The relevant Head of Division or Office provides written authorisation (on the standard form) to the Deputy Vice-Chancellor (Research) that:

      1. The staff member is satisfactorily performing their normal duties of employment in accordance with their contract of employment and that this work will not impede the continuing satisfactory performance of those duties;
      2. Either no University facility (including power, space, equipment) is to be used or the Head of Division demonstrates that the use of such facilities will be undertaken on the basis of Full Cost Recovery under the terms of a written agreement between the Staff Member and the Head of Division or Office representing the University. A copy of such an agreement must be available on request to the Deputy Vice-Chancellor (Research);
      3. The Division or Office has no objection to the Staff Member carrying out the Consultancy.

    2. The Staff Member is a member of a Professional Body.

    3. The Staff Member has current professional indemnity insurance (with appropriate documentary evidence presented) covering all potential damage or loss sustained as the result of negligence in the course of performing services in relation to the proposed Private Consultancy. Specific attention should be given to ensuring that the insurance coverage is adequate if the consultancy is to be delivered outside Australia (especially USA and Canada).

    4. The proposed Consultancy is not competing with services otherwise provided by the University or a University Company nor within an area that would normally be offered by the University on a commercial basis. If required, the Deputy Vice-Chancellor (Research) will provide advice on the matter.

    5. No University letterhead, stationery, postal address, phone number, fax number, e-mail address or Web address is to be used, nor any other information which might associate the University with the Private Consultancy in any way.

    6. The University and all University Companies are expressly and specifically dissociated from the Private Consultancy by providing that the standard clauses set out in Attachment A of this Policy is inserted into any Private Consultancy contract with the external client, which contract must be entered into in writing. The University reserves the right to require evidence of compliance with this provision if it deems it necessary.

    7. No administrative or technical area of the University (including, but not limited to, the Finance, Personnel, Legal, Registrar’s Office, Division of Information Services, Research Office or Divisional Office) provides services for any Private Consultancy.

    8. The staff member, or the legal entity used by the staff member, is a registered provider for purposes of the Goods and Services Tax legislation (GST), ie an ABN number has been issued. The legislation makes registration voluntary where total revenues derived will not exceed $50,000 per annum. However, an unregistered staff member deriving revenue for consulting services could be held to have acted as an agent for the University, rendering the University liable to remit the equivalent GST even though it has not been charged by the consultant or by the University. Moreover, in circumstances where the University is employing its own staff on consulting assignments, the University or its associated companies will require the consultant to be a registered provider so that a tax credit may be claimed on the GST component of the consultancy fee paid.

    1. University Based Consultancy



      1. University Consultancy is to be contracted with an external party through a University Company. It shall be deemed to be approved only when a standard agreement (provided by the University Company) has been completed. The company will keep the Head of Division informed of all negotiations with individual staff of that Division. The company will report quarterly on relevant consulting activities.

      2. The University, through the Research Office, will from time to time undertake audits of financial cost centres to ensure compliance with this Policy.

      3. Community Service Consultancy is to be contracted directly through the University by the Research Office under the following conditions and protocols:

        1. Community Service Consultancy shall be deemed to be approved only when a standard form (copies available from the Research Office) has been completed including all of the following:
          1. Brief description of the Consultancy activities;
          2. Details of external parties to which services are being provided;
          3. Financial information including costing (with demonstration of Full Cost Recovery) and pricing details;
          4. Authorisation of the Head of Division or Office, including a statement to the effect that the Staff Members concerned are satisfactorily performing their normal duties of employment in accordance with their contract of employment;
          5. Signature of the staff member proposing to provide the consultancy.
          6. Approval by the Deputy Vice-Chancellor (Research).

        2. The signed standard form will provide information for the contract with the external party to be prepared and issued by the Research Office.

        3. The following activities are specifically exempt from the requirement to fill out and sign the standard form: receipt of an honorarium or royalty for examination of theses, assessment of staff classification or promotion, attending meetings, writing or publishing conventional scholarly works in the Staff Member’s field of expertise (such as books, chapters, articles, reviews, editing), honorary service on editorial boards, speaking engagements, exhibitions or performances. In these cases notification to the Head of Division (in an annual report, for example) will suffice. Exemption of other activities may be approved from time to time by the Deputy Vice Chancellor (Research).

    2. Waivers

      The Deputy Vice Chancellor (Research) may waive one or more of the above requirements on a case by case basis if considered to be appropriate.

    3. Application

      These provisions apply to all Full Time Staff Members and Part Time Staff Members whose fractional appointment is at a time fraction of 0.8 or above. For Part Time Staff Members employed at a time fraction below 0.8 and Casual Staff Members, the terms and conditions of employment may be negotiated on a case by case basis to cover the terms upon which they may participate in Private Consultancy, Community Service Consultancy and/or University based consultancy, as defined in this policy.

    General staff who wish to carry out a consultancy activity during their ordinary hours of employment must do so as University Consultancy. General staff who wish to carry out consultancies outside their ordinary hours of employment are exempt from these provisions provided that they are not offering a product or a service in an area that would normally be held to be offered by the University on a commercial basis. If required, the Deputy Vice-Chancellor (Research) will provide advice on the matter, otherwise it is regarded as Private Consultancy.

    1. Non-Compliance

      If a staff member is engaged in consulting activities without approval, the Head of Division or Office must request that the activity cease and that appropriate approval be obtained before it may be resumed.

    In the event of their non-compliance with the directives of this Policy, staff members will be subject to the misconduct rules set out in the Agreement On Enterprise Bargaining (Academic Staff) 1997 between Macquarie University and The National Tertiary Education Industry Union and the Macquarie University General Staff Agreement of 1997, or the specific contract of employment for Casual Staff Members.

    Determination of Disputes

    In the event of any dispute between the University and a staff
    member relating to consultancy, such dispute is to be referred to the Vice-Chancellor. The Vice-Chancellor may refer the matter to a committee of advice. In all cases, the decision of the Vice-Chancellor will be final.

Contact for further information:

Professor Jim Piper
Deputy Vice-Chancellor (Research)
Ph: (02) 9850 8645
email: jim.piper@vc.mq.edu.au

Dr P W Freeman
Director, Research & Research Training Services
Ph: (02) 9850 8611
email: peter.freeman@vc.mq.edu.au

 

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