Chapter 2 – Conflict of interest and post-employment

Purpose

The objectives of this chapter of the Code are to:

Conflict of interest

A conflict of interest is a situation in which an employee has private interests that could influence the performance of their official duties and responsibilities or in which the person employed uses their office for personal gain.

A real conflict of interestexists at the present time, an apparent conflict of interest is a situation that could be perceived as a conflict of interest by a reasonable observer to exist, whether or not it is the case, and a potential conflict of interest could reasonably be foreseen to happen in the future.

Conflict of duties

A conflict of duties arises not because of the private interests of a person employed in the core public administration, but because of one or more concurrent and competing official responsibilities.

For example, these roles include their primary public service employment and their responsibilities in an outside role that is part of their official duties, such as an appointment to a board of directors, or other outside function.

Requirements for preventing and dealing with conflict of interest and post-employment situations

The following are the conflict of interest and post-employment requirements that are a condition of employment for employees at the Department. These requirements are grounded in and serve to uphold the values contained in the Values and Ethics Code for the Public Sector, and repeated in this Code. By upholding these ethical standards, you conserve and enhance public confidence in the honesty, fairness, and integrity of the public service. These requirements also form part of Canada’s commitments as a signatory to international agreements on values and ethics.

Prevention of conflict of interest

An employee maintains public confidence in the objectivity of the public service by preventing and avoiding situations that could give the appearance of a conflict of interest, result in a potential for a conflict of interest or result in an actual conflict of interest. Conflict of interest does not relate exclusively to matters concerning financial transactions and the transfer of economic benefit. While financial activity is important, conflicts of interest in any area of activity can have a negative impact on the perceived objectivity of the public service. With the permanent and pervasive nature of information technology, employees should be particularly sensitive to real, apparent or potential conflicts of interest that may arise from messages and information transmitted via social media, online and through other media.

It is impossible to foresee every situation that could give rise to a real, apparent, or potential conflict of interest. When in doubt, refer to the requirements found in this Code for guidance. Employees can also seek guidance from their manager and, if necessary, from another senior manager in their reporting structure. If after this step there is still doubt as to whether the activity or situation raises a conflict of interest, the employee must consult the office responsible for values and ethics (available on the Government of Canada network only).

In addition to the requirements outlined in this chapter, employees are also required to observe any specific conduct requirements contained in the statutes governing the Department and their profession, where applicable.

1. General responsibilities and duties of an employee

Employees have general responsibilities and duties, including the following:

  1. taking all possible steps to recognize, prevent, report, and resolve any real, apparent or potential conflicts of interest between their official responsibilities and any of their private affairs
  2. unless otherwise permitted in this chapter, refraining from having private interests, which would be unduly affected by government actions in which they participate, or of which they have knowledge or information
  3. not knowingly taking advantage of, or benefiting from, information that is obtained in the course of their duties that is not available to the public
  4. refraining from the direct or indirect use of, or allowing the direct or indirect use of government property of any kind, including property leased to the government, for anything other than officially approved activities
  5. not assisting private entities or persons in their dealings with the government where this would result in preferential treatment of the entities or persons
  6. not interfering in the dealings of private entities or persons with the government to inappropriately influence the outcome
  7. maintaining the impartiality of the public service and not engaging in any outside or political activities that impair or could be seen to impair their ability to perform their duties in an objective or impartial manner
  8. ensuring that any real, apparent or potential conflict of interest that arises between their private activities and their official responsibilities as an employee is resolved in the public interest

2. Requirements for preventing and dealing with situations of conflict of interest

Employees are required to report in writing to the Deputy Minister, via the office responsible for values and ethics, all outside activities, assets and interests that may give rise to a real, apparent or potential conflict of interest in relation to their official duties. Such a report must be made within 60 days of their initial appointment. However, no matter what form these outside activities take, employees must ensure beforehand that they are not likely to result in a real, apparent or potential conflict of interest or that it can be managed effectively to reduce associated risks to an acceptable level as determined by management and the Delegated Authority under this Code.

On a regular basis thereafter, and every time a change occurs in their personal affairs or official duties, every employee is required to review their obligations under the Code. If a real, apparent or potential conflict of interest exists, they are to file a report as soon as possible.

When negotiating financial arrangements with outside parties, employees are to comply with the requirements listed in this chapter as well as other related directives or policies issued by the Treasury Board. When in doubt, employees are to immediately report the situation to their manager to seek advice or direction on how to proceed.

The Department encourages employees to participate in outreach activities and personal and professional development promoted by their respective professional associations or relevant to their areas of private interest. No matter what form these outside activities might take, the employee must ensure that they also comply with the requirement of the Code related to conflict of interest.

In general, conflicts of interest may arise in relation to the following:

Furthermore, if an outside individual or entity with whom the Government of Canada has past, present or potential official dealings offers a commission, reward, advantage or benefit of any kind to an employee or the Department, they are to consider whether any real, apparent or potential conflict of interest exists, and obtain the consent in writing of the Deputy Minister or their delegate prior to accepting any such offers. This provision is designed to ensure that employees comply with paragraph 121(1)(c) of the Criminal Code.

2.1 Assets

Employees are required to evaluate their assets, taking into consideration the nature of their official duties and the characteristics of their assets. If there is any real, apparent or potential conflict of interest between the carrying out of their official duties and their assets, they are to report this matter to the Deputy Minister, via the office responsible for values and ethics, in a timely manner.

Where the Deputy Minister or their delegate determines that any of these assets result in a real, apparent or potential conflict of interest in relation to their official duties, employees may be required to divest those assets, or to take other measures to resolve the conflict. Employees may not sell or transfer assets to family members or anyone else for the purpose of circumventing the compliance requirements.

The types of assets that should be reported and the procedures for reporting and managing such assets are set out in Annex B, assets, liabilities and trusts of this Code and Appendix B of the Directive on Conflict of Interest.

2.2 Outside employment or activities

Justice employees may engage in employment outside the federal public service and take part in outside activities unless the employment or activities are likely to give rise to a real, apparent or potential conflict of interest or would undermine the impartiality of the public service or the objectivity of the employee.

Employees are required to provide a report to the Deputy Minister, via the office responsible for values and ethics, when their outside employment or activities might subject them to demands incompatible with their official duties or cast doubt on their ability to perform their duties or responsibilities in a completely objective manner. The Deputy Minister or their delegate may require that the outside activities not be undertaken, or be terminated or modified if it is determined that a real, apparent or potential conflict of interest exists.

The Directive on External Practice of Law (available on the Government of Canada network only), which applies to Law Practitioners working at the Department of Justice Canada, provides the foundational basis and guiding principles when seeking approval to practice law outside of their employment at Justice. As per the Directive, these requests must be approved by the Deputy Minister prior to undertaking that external practice. Any related leave request must also await the approval of the Deputy Minister, regardless of the leave type.

2.3 Contracting with the Government of Canada

Employees who expect to receive a benefit or income either directly or indirectly from a contract with the Government of Canada are required to report to the Deputy Minister, via the office responsible for values and ethics, on such contractual or other arrangements and obtain a decision prior to the contract being accepted. The Deputy Minister or their delegate will determine whether the arrangement presents a real, apparent or potential conflict of interest, and may require that the contract be modified or terminated.

2.4 Political activities

Non-candidacy political activitiesFootnote 2

Employees must seek the advice of their manager and the Designated Political Activities Representative before participating in non-candidacy political activities. If there is any real, apparent or potential conflict of interest situation, or if there is any question as to whether the situation might exist, it must be reported to the Deputy Minister, via the office responsible for values and ethics.

Candidacy

Employees must get permission from the PSC before publicly declaring their intention to become a candidate in a federal, provincial, territorial, or municipal election, according to Part 7 of the Public Service Employment Act (PSEA). The employee must contact the designated official in the Department, who will seek the input of senior management and work closely with the person making the request and the PSC to process the request.

Any employee who wishes to engage in a political activity not covered by Part 7 of the PSEA that could create a conflict of interest must report the proposed activity to the Deputy Minister via the office responsible for values and ethics.

Also, any employee who is subject to the Treasury Board’s Directive on Conflict of Interest but who is not subject to Part 7 of the PSEA, including casual and part-time workers, who wishes to engage in any political activity that could create a real, apparent or potential conflict of interest must report the proposed activity to the Deputy Minister via the office responsible for values and ethics.

2.5 Gifts, hospitality, and other benefits

Public servants are expected to use their best judgement to avoid situations of real, apparent or potential conflict of interest. This includes considering the following criteria for gifts, hospitality, and other benefits.

Employees must not accept any gifts, hospitality or other benefits that may have a real, apparent or potential influence on their objectivity when carrying out their official duties and responsibilities or that may place them under obligation to the donor. This includes free or discounted admission to sporting and cultural events, travel or conferences.

Accepting gifts, hospitality and other benefits is permissible, provided that they do not compromise or appear to compromise the integrity of the employee or the Department. For example, this could be the case if they are:

Employees must seek written direction from the Deputy Minister, via the office responsible for values and ethics, where it is impossible to decline gifts, hospitality or other benefits that do not meet the principles set out above, or where it is believed that there is sufficient benefit to the Department to warrant acceptance of certain types of hospitality.

2.6 Solicitation

Employees may not solicit gifts, hospitality, other benefits, or transfers of economic value from a person, group or organization in the private sector who has dealings with the government, except when fundraising for officially supported activities such as the Government of Canada Workplace Charitable Campaign (GCWCC). When fundraising for such official activities, employees need prior written authorization from the Deputy Minister or their delegate to solicit donations, prizes, or contributions in kind from external organizations or individuals.

The solicitation of employees, or external persons, groups or organisations can only be authorized for charitable purposes. Authorized activities are usually limited to those that benefit a registered charity.

The Deputy Minister or their delegate may require that the activities be modified or terminated where it is determined that there is a real, potential, or apparent conflict of interest or an obligation to the donor.

2.7 Avoidance of preferential treatment

Employees are responsible for demonstrating objectivity and impartiality in the exercise of their duties and in their decision-making, whether related to staffing, financial awards or penalties to external parties, transfer payments, program operations or any other exercise of responsibility.

This means that they are prohibited from granting preferential treatment or advantages to family, friends or any other person or entity. They are not to offer extraordinary assistance to any entity or person already dealing with the government without the knowledge and support of their supervisor. They also are not to disadvantage any entity or person dealing with the government because of personal antagonism or bias.

Providing information that is publicly accessible is not considered preferential treatment.

2.8 Social media, disinformation and misinformation

Employees, like all Canadians, have the right to freedom of thought, belief, opinion, association and expression under the Canadian Charter of Rights and Freedoms. As an inclusive public service that strives to be representative of the public we serve, our diversity and varied lived experiences enrich our overall ability to deliver excellence for Canada and Canadians.

However, we also have responsibilities because of our role as public servants. Our work is essential to Canada’s well-being, and a professional, non-partisan, and impartial federal public service that understands and appreciates the diverse experiences of all Canadians is integral to our democracy.

Department of Justice employees are expected to exercise caution and consider their specific role to uphold the trust and confidence of Canadians in the government and the public service. This means ensuring their personal social media use complies with this Code as well as aligns with principles related to the Duty of Loyalty, an obligation, with some exceptions, to not be critical of the Government of Canada where such criticisms could impact an individual employee’s impartiality, that of the Department, of the Crown, or of the public sector more generally.

Employees also have an obligation not to knowingly share or post misinformation or disinformation as we provide non-partisan evidence-based advice. In some cases, this may require some due diligence to ensure a post is from a credible source. Sharing this type of information can impact one’s credibility or create a real, apparent or potential conflict of interest, particularly if an individual is more visible on social media or in the public sector.

2.9 Use of artificial intelligence

Employees should only use external artificial intelligence (AI) tools for work purposes when the information is publicly available, not protected or classified. This can include tasks such as synthesizing large volumes of information from the internet.

Employees must evaluate the risks associated with using internal artificial intelligence tools for official purposes in the workplace. They must also consider the guiding principles and best practices for using these tools.

These tools can provide institutional and public benefits, if used correctly and in a way that protects corporate information and mitigates risk.

3. Requirements for preventing post-employment conflict of interest situations and after leaving office

All employees have a responsibility to minimize the possibility of a real, apparent or potential conflict of interest between their most recent responsibilities within the federal public service and their subsequent employment outside the public service.

3.1 Before leaving employment

Before leaving their employment with the public service, all employees are to disclose their intentions regarding any future outside employment or activities that may pose a risk of a real, apparent or potential conflict of interest with their current responsibilities and discuss potential conflicts with their manager, or the Deputy Minister or their delegate.

3.2 Post-employment limitation period for public servants in designated positions

The Deputy Minister is responsible for designating positions of risk for post-employment conflict of interest situations in accordance with the Directive on Conflict of Interest.

The following are designated as positions of risk at the Department of Justice: EX, LC, LP-04 and LP-05.

Employees in these designated positions are subject to a one-year limitation period after leaving office. Before leaving office and during this one-year limitation period, these employees are to report to the Deputy Minister in writing, via the office responsible for values and ethics, all firm offers of employment or proposed activity outside the public service that could place them in a real, apparent or potential conflict of interest with their public service employment. They must also immediately report if they accepted any such offer. Additionally, during this one-year period, these employees cannot do the following without the Deputy Minister’s authorization:

  1. Accept appointment to a board of directors of, or employment with, private entities with which they had significant official dealings during the period of one year immediately prior to the termination of their service. The official dealings in question may either be directly on the part of the public servant or through their subordinates;
  2. Make representations on behalf of persons or entities outside of the public service to any government organization with which they had significant official dealings, during the period of one year immediately prior to the termination of their service. The official dealings in question may either be directly on the part of the public servant or through their subordinates; or
  3. Give advice to their clients or employer using information that is not publicly available concerning the programs or policies of the Department or organizations with which they had a direct and substantial relationship.

3.3 Waiver or reduction of limitation period

An employee or former public servant may apply to the Deputy Minister, via the office responsible for values and ethics, for a written waiver or reduction of the limitation period. The employee is to provide sufficient information to assist the Deputy Minister or their delegate in making a determination as to whether to grant the waiver taking into consideration the following criteria:

  1. the circumstances under which the termination of their service occurred
  2. the general employment prospects of the employee or former public servant
  3. the significance to the government of information possessed by the employee or former public servant by virtue of that individual’s position in the public service
  4. the desirability of a rapid transfer of the employee’s or former public servant’s knowledge and skills from the government to private, other governmental or non-governmental sectors
  5. the degree to which the new employer might gain unfair commercial or private advantage by hiring the employee or former public servant
  6. the authority and influence possessed by that individual while in the public service
  7. any other consideration at the discretion of the Deputy Minister

4. Resolution

With respect to the arrangements necessary to prevent a real, apparent or potential conflict of interest, or to comply with the requirements set out above, it is expected that situations will be resolved through discussion and agreement between the employee and the Deputy Minister or their delegate. When an employee and the Deputy Minister or delegate disagree on the appropriate arrangements to resolve a real, apparent or potential conflict of interest, the disagreement will be resolved through the grievance procedures (available on the Government of Canada network only) established by the Department.

5. Consequences

The Department fully trusts its employees to carry out their professional duties properly and expects each employee to comply with this Code and the related policies and guidelines.

Employees who do not comply with the requirements set out in this Code may be subject to disciplinary measures, up to and including termination of employment. Any disciplinary measures will be based on the seriousness of the breach.