Authority to regulate the internal affairs of a municipality is contained in N.J.S.A. 40:48-2.
3-1.1. 
General Policies.
a. 
Employment in the borough shall be based on merit and fitness, free of personal and political considerations.
b. 
Appointments, promotions and other personnel actions shall be on a merit basis.
c. 
Qualified borough personnel shall be given first consideration for vacancies and new positions.
3-1.2. 
Abolition or Modification of Offices. The borough council may, by ordinance, abolish, increase, decrease or modify the terms and compensation of any office of the borough, except it may not abolish or alter the terms where such office has been or is created by general law, except in conformity to such law. Except where an office is abolished, no decrease or modification of its terms and no decreases in its compensation shall affect any incumbent holding such office for the duration of the term for which (s)he was appointed.
3-2.1. 
Power of Appointment. All employees, officers and department heads of the borough shall be appointed and promoted by the mayor, with the advice and consent of the council, except as may be otherwise provided by general law.
3-2.2. 
Qualifications. Original appointments to fill vacancies or for new positions shall be limited to qualified persons who have been bona fide borough residents, as defined in N.J.S.A. 40A:9-1.3, for a period of two years.
3-2.3. 
Exemptions and Preferences.
a. 
Exemptions. Applicants for appointment to a position with the police department are exempt from the provisions of subsection 3-2.2, however, preference for appointment will be given to those applicants who have been bona fide residents for a period of two years as of the date that the exam for the position is taken.
b. 
Preferences. Preference for all borough appointments shall be given to those qualified persons who are borough employees and/or presently serving as volunteers for a period of six months or more or who have served in the past as volunteers for municipally sponsored volunteer organizations for a period of no less than two consecutive years. Any person hired to a position must maintain volunteer status for a period of two years following the appointment.
3-2.4. 
Advertising by Borough. The borough has no obligation to advertise opening for municipal positions.
3-2.5. 
Applications. Applicants for borough employment shall apply on forms provided by the borough clerk and which have been designed to obtain pertinent information concerning the applicant's education, training, experience, character and other factors necessary to determine his/her fitness and qualification for service to the borough. All applications shall be filed with the borough clerk.
3-2.6. 
Processing. The borough clerk shall be charged with processing all applications for appointment to vacancies or new positions, and reporting thereon to the mayor and council. Where it appears that an applicant is otherwise qualified for borough employment, the clerk shall require that the applicant submit to a physical examination by the borough physician.
3-2.7. 
Grounds for Rejection of Applicant. An applicant for borough employment may be rejected if (s)he:
a. 
Is not qualified for appointment to the position for which (s)he has applied.
b. 
Is physically unfit to perform the duties of the position for which (s)he has applied.
c. 
Is addicted to the habitual or excessive use of drugs or intoxicants.
d. 
Has been convicted of any crime or offense, including disorderly persons offenses involving moral turpitude.
e. 
Has received other than an honorable discharge from the Armed Services of the United States.
f. 
Has been dismissed from previous employment for delinquency, insubordination or misconduct.
g. 
Has practiced or attempted to practice any deception or fraud in his/her application or in furnishing other evidence of eligibility for appointment.
3-3.1. 
Probation. Except when provided by law, every person appointed to a new position shall be deemed to be on probation in the position to which (s)he shall have been appointed for a period of one year, but such probation shall not affect permanent status of any other borough employment that such person may have achieved. Prior to completion of the probationary period, such employee or officer shall be evaluated by the mayor and council to determine whether (s)he shall be granted permanent status or dismissed. The mayor and council may require reports and recommendations for immediate superiors and department heads for this purpose.
3-3.2. 
Personnel File. The borough clerk shall initiate a personnel file for each new employee of the borough, and all records of the employee concerning qualification, permanent status, work history, accumulated vacation and sick leave, leave time and the like shall be maintained in the file. The clerk shall make such files available for inspection by the employee on a reasonable basis.
3-4.1. 
Hours. The hours of work for employees, including lunch hours, shall be specified by the borough council.
3-4.2. 
Holidays.
a. 
Due to the emergency nature of the work of the police department the provisions of this subsection shall not be applicable to members of the police department, but such members may be granted compensatory time when required to work on holidays.
b. 
The following official holidays with pay shall be observed by the borough:
New Year' Day
Labor Day
Lincoln's Birthday
Columbus Day
Washington's Birthday
General Election Day
Good Friday
Veterans' Day
Memorial Day
Thanksgiving Day
Independence Day
Christmas Day
c. 
If a holiday falls on a Sunday, it shall be observed on the following Monday.
d. 
In the event that an official holiday is observed during an employee's vacation, (s)he shall be entitled to an additional vacation day, and should an official holiday occur while an employee is on sick leave, (s)he shall not have that holiday charged against his/her sick leave.
3-4.3. 
Sick Leave.
a. 
As used in this subsection, "sick leave" shall mean paid leave that may be granted to an employee who through sickness or injury becomes incapacitated to a degree that makes it impossible for him/her to perform the duties of his/her position, or who is quarantined by a physician because (s)he has been exposed to a contagious disease. Part-time and full-time temporary employees shall not be eligible for sick leave.
b. 
A certificate from the employee's doctor may be required as sufficient proof of the need for sick leave. The borough reserves the right to have the employee examined by the borough physician.
c. 
In the first year of employment, an employee shall be entitled to 1/2 day sick leave for each month of employment. Sick leave shall accumulate on the basis of six days per year. Sick leave may not be accumulated from year to year. Additional sick days may be awarded at the discretion of the mayor and council.
3-4.4. 
Leave of Absence as a Result of Injury in the Line of Duty.
a. 
When a borough employee is injured in the line of duty, the council may, pursuant to N.J.S.A. 40:11-8, pass a resolution giving the employee up to six months leave of absence with pay. When such action is taken the employee shall not be charged any sick leave time for time lost to such injury.
b. 
Prior to the passage of the resolution referred to in paragraph a, above, a contract shall be executed between the employee and the borough setting forth that the employee shall reimburse the borough for moneys (s)he may receive as worker's compensation, temporary benefits or from legal settlement or judgment against the person responsible for the injury.
3-4.5. 
Leave Because of Death in Immediate Family. Leave with pay not exceeding three days shall be granted to an employee in the event of death in his/her immediate family. For the purposes of this subsection the term "immediate family" shall include the employee's spouse, child, parent, brother or sister; the child, parent, brother or sister of his/her spouse and a relative living under the same roof.
3-4.6. 
Outside Employment. Employees shall not accept outside employment or engage in outside business activities without the prior approval of their department head and the borough council. No application for permission to accept outside employment shall be granted unless there is reasonable probability that such outside employment will not interfere with the employee's performance or compromise his/her position with the borough through a conflict to interest or, in the case of a full-time employee of the borough, if such outside employment shall exceed 20 hours per week.
3-5.1. 
Disciplinary Actions Enumerated. An employee who has acquired permanent status may be disciplined by any of the following actions, which are stated in order of severity, for the causes stated in this section, by a department head or the borough council, except that no employee shall be suspended or dismissed without the approval of the mayor and council.
a. 
Informal, verbal reproof.
b. 
Written reproof.
c. 
Suspension from duty.
d. 
Dismissal.
3-5.2. 
Causes of Disciplinary Action. The causes for which disciplinary action may be invoked are the following:
a. 
Neglect of duty.
b. 
Absence without leave or failure to report after authorized leave has expired or after such leave has been disapproved or revoked; provided that any regular member or officer of the police department who shall be absent from duty without just cause for a term of five days continuously and without leave of absence shall, at the expiration of such five days, cease to be a member of the police department as provided by N.J.S.A. 40:47-3, as amended.
c. 
Incompetency or inefficiency or incapacity due to mental or physical disability.
d. 
Insubordination or serious breach of discipline.
e. 
Intoxication while on duty.
f. 
Commission of a criminal act.
g. 
Disobedience of a rule or regulation of the borough.
h. 
Conduct unbecoming a public employee.
3-5.3. 
Hearing. Any employee disciplined under the provisions of this section shall, upon request, be granted a hearing. A reasonable opportunity for such hearing shall be granted before the imposition of disciplinary action, except that an employee may be summarily suspended if it is deemed that the circumstances so warrant. In such case if, after the hearing, it appears that the suspension was not proper, the council may order reinstatement with pay.
It is here by declared to be the policy of the borough to recognize and encourage meritorious actions on the part of its officers and employees. To this end, letters of commendation concerning borough employees from their superiors and from members of the public with whom they deal shall be directed to the attention of the mayor and council and then recorded in the employee's personnel file. In addition, the mayor and council may, of its own motion, commend the work of particular officers and employees and cause such commendation to be inserted in their personnel files.
Every officer or employee of the borough who, by virtue of his/her office or position, is entrusted with the receipt, custody or expenditure of public moneys or funds, and any other officer or employee who may be required to do so by the mayor and council shall, before entering upon the duties of such office or position, execute and deliver a surety bond in such amount as may be fixed by the mayor and council, binding him/her to the borough in its corporate name and conditioned upon the true and faithful performance of his/her duty. Each officer or employee required by law to give bond shall execute such bond with sufficient surety and deliver the same to the borough clerk, except that the clerk shall deliver his/her bond to the borough treasurer, before (s)he enters upon the discharge of the duties of the office or employment.
If any officer or employee shall neglect to execute and deliver such bond as herein required within 30 days after due notification of his/her election or appointment, such office or position may be declared vacant.
In every case in which any person is required by the laws of the state or by any ordinance of the borough to give a bond for the faithful performance of duties, such bond shall be secured by a corporate surety authorized to do business in this state and the premium therefor shall be paid by the borough. Each such bond shall be approved by the borough attorney as for form and sufficiency, and nothing in this section shall be construed to prevent the use of one or more blanket bonds when so approved.
3-8.1. 
Conflicts of Interest. No elected or appointed official, officer or employee of the borough shall engage in any business transaction, professional activity or have a financial or other private interest, either direct or indirect, which is in substantial conflict with the proper discharge of his/her official duties, unless full disclosure is made as to such interest, in writing, to the mayor and council.
3-8.2. 
Employment or Investments Affecting Duties. No elected or appointed official, officer or employee of the borough shall accept employment, engage in any business transaction or make any investment which will be detrimental to the borough in the exercise of his/her official duties or which will interfere in any manner whatsoever with the discharge of his/her official duties.
3-8.3. 
Representation of Private Interests. No elected or appointed official, officer or employee of the borough shall represent any private interests to the detriment of the borough or for the purpose of unwarranted personal gain before any borough agency or department, or the municipal court, or in any litigation to which the borough is a party.
3-8.4. 
Disclosure of Interest in Legislation. In the event that any elected or appointed official or the borough clerk, treasurer, attorney, engineer, mayor or council have direct or indirect financial interest in any proposed legislation, (s)he shall publicly disclose on the official records of the borough the nature and extent of such interest.
3-8.5. 
Improper Use of Official Position. No elected or appointed official, officer or employee of the borough shall improperly use his/her official position in order to obtain a personal discount or other benefit from any person whatsoever.