EXPLANATORY STATEMENT
STATUTORY RULE 1985 NO. 193 ISSUED BY THE
AUTHORITY OF THE MINISTER FOR COMMUNICATIONS
In July 1984 it was agreed that the Board of Commissioners of the Overseas Telecommunications Commission (the Commission) should be restructured to achieve consistency with Telecom and Australia Post. Amongst other things, the proposal involved the appointment to an expanded Board of the chief executive officer of the Commission. The chief executive officer, formerly the General Manager, was to become a statutory appointment and redesignated as the Managing Director.
The proposal was implemented by the Statute Law (Miscellaneous Provisions) Act (No. 2) 1984 and the revelant provisions came into effect on 25 October 1984. As a result of the creation of the position of Managing Director, the chief executive officer is no longer an officer of the Commission. Consequently, sub-section 9(5) of the Act, as amended, provides that the regulations may provide for the preservation of such rights as are set out in the regulations by an officer of the Commission who is appointed to be the Managing Director. Further, regulations may provide for and in relation to the appointment of such an officer to the Commission upon the termination of his or her appointment to the Board, unless the termination was on the grounds of misconduct or of having reached the age of retirement from the Commission.
It is now proposed to make regulations for the purpose of sub-section 9(5) of the Act.
Details of the proposed regulations are as follows.
The Regulation inserts a new Part dealing with the preservation of the rights of the Managing Director after the existing Part III of the Overseas Telecommunications Commission Regulations. The new Part contains the following regulations.
Regulation 11A provides that an officer of the Commission who is appointed as Managing Director retains such rights with respect to sick leave, long service leave or payment in lieu thereof, recreation leave and superannuation as that person would have been entitled to had he or she remained an officer of the Commission. Such an appointee is deemed to be an unattached officer of the Commission on leave without pay for the period of the appointment, which will be counted for all purposes as part of the appointee’s period of service with the Commission.
Regulation 11B provides that such an appointee is entitled on the termination of his or her appointment, except on the grounds of misconduct or if he or she has reached the age of retirement, to be appointed to a position in the service of the Commission. When deciding the status and salary of the position, the Commission must consider the appointee’s former position in the service of the Commission and the period of his or her appointment as Managing Director.
Overview
The Statute Law (Miscellaneous Provisions) Act (No. 2) 1984, enacted by the Australian Parliament, was introduced to restructure the Board of Commissioners of the Overseas Telecommunications Commission (OTC) in line with Telecom and Australia Post. This restructuring involved, among other things, the appointment of the chief executive officer of the Commission to an expanded Board, who would also become a statutory appointment and be redesignated as the Managing Director. The purpose of this Act was to ensure consistency in the management structure across these entities. As a result of the creation of the Managing Director position, the chief executive officer is no longer an officer of the Commission, which necessitated the preservation of their rights upon appointment to the Board and potential reappointment upon termination of their Board appointment, unless terminated due to misconduct or retirement. This restructuring aimed to harmonise the governance and management frameworks across the telecommunications sector in Australia.
Scope and Application
The Statutory Rule 1985 No. 193, issued under the authority of the Minister for Communications, pertains to the restructuring of the Board of Commissioners of the Overseas Telecommunications Commission (the Commission) and the creation of the position of Managing Director. The provisions of this rule came into effect on 25 October 1984, following the enactment of the Statute Law (Miscellaneous Provisions) Act (No. 2) 1984. The rule specifically addresses the preservation of rights for an officer of the Commission appointed as Managing Director, ensuring that they retain entitlements such as sick leave, long service leave, recreation leave, and superannuation as if they were still an officer of the Commission. Furthermore, upon termination of their appointment as Managing Director, unless due to misconduct or reaching retirement age, the appointee is entitled to be considered for a position within the Commission, with the status and salary of the position reflecting their prior role and the duration of their appointment as Managing Director. This rule applies to the officers of the Commission who are appointed to the position of Managing Director, ensuring that their transition into this role does not adversely affect their employment rights and benefits.
Key Provisions
The principal sections of the regulation, as set out in the explanatory statement, focus on the preservation of rights for the Managing Director of the Overseas Telecommunications Commission (OTC). Specifically, Regulation 11A (paragraphs omitted) ensures that the Managing Director retains entitlements to sick leave, long service leave or payments in lieu thereof, recreation leave, and superannuation as if they were still an officer of the Commission. Moreover, Regulation 11B (paragraphs omitted) mandates that upon the termination of their appointment, unless due to misconduct or retirement age, the Managing Director is entitled to be appointed to a position within the Commission, with the consideration of their prior service and duration of their Managing Director tenure.
These regulations impose obligations on the Commission to safeguard the Managing Director's entitlements and to facilitate their re-employment under certain conditions. The Commission must ensure that the Managing Director's entitlements are preserved as if they had not transitioned from being an officer of the Commission. Additionally, upon the Managing Director's departure from the Board, the Commission must provide them with an opportunity to be re-appointed within the organisation, taking into account their previous position and the length of their Managing Director term.
Failure to adhere to these provisions could potentially lead to breaches of the statutory rights designed to protect the Managing Director. Although the explanatory statement does not detail specific offences or penalties, any non-compliance with these regulations could be subject to legal scrutiny and remedy under relevant employment or administrative law provisions. The potential consequences could include claims for compensation or other remedies for any loss of entitlements or unfair treatment.