From today, the commission replaces the Advisory Committee on Staffing Matters, and will be established formally after the Local Government (Wales) Bill has finished its passage through Parliament.
It will also consider the arrangements for transferring staff and other related issues.
The commission's chairman is former Permanent Secretary at the Welsh Office Sir Richard Lloyd Jones.
Former Dyfed CC chief executive David Davies, who was a member of the advisory committee, was not available to sit on the commission.
Mr Redwood paid tribute to the work of the committee since it was formed last September and said he would welcome suggestions - especially from local government - on a possible further member of the commission.
The commission is being paid for by the Welsh Office and, pending parliamentary approval, expenditure of £150,000 will be met by advances from the contingencies fund.
Its remit is set out in clause 40 of the Local Government (Wales) Bill.