REMUNERATION TRIBUNAL
Explanatory Statement: Determination 2012/10
Compensation for Loss of Office for Holders of Public Office
1. The Remuneration Tribunal has inquired into and determined the provision of compensation for loss of office for a holder of a public office, as it is empowered to do by the Remuneration Tribunal Act 1973 (the Act).
2. In making this determination the Tribunal has informed itself through consultation in accordance with established practice.
3. Any retrospective application of this determination is in accordance with subsection 12(2) of the Legislative Instruments Act 2003 as it does not affect the rights of a person (other than the Commonwealth or an authority of the Commonwealth) to that person’s disadvantage, nor does it impose any liability on such a person.
4. This Determination is compatible with the human rights or freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. This Determination does not engage any of the applicable rights or freedoms.
PART 1 – GENERAL
5. Clause 1.1 specifies the authority for the Determination.
6. Clause 1.2 sets the date of effect of the Determination.
7. Clause 1.3 specifies that the Determination supersedes Determination 2007/07 Compensation for Loss of Office for Public Office Holders which ceased to have effect on 30 June 2012.
8. Clause 1.4 and 1.5 are definitions of new terms, Reference Salary, at Clause 1.4 and Employer’s Superannuation Contribution, at Clause 1.5.
PART 2 – COMPENSATION FOR LOSS OF OFFICE
9. Part 2 sets out the entitlements for compensation for early loss of office which take effect on 1 July 2012.
Authority: Sub-sections 7(3) and 7(4)
of the Remuneration Tribunal Act 1973
Overview
The Remuneration Tribunal Determination 2012/10, issued under the Remuneration Tribunal Act 1973, was enacted to address the issue of providing compensation for loss of office for holders of public office. This Determination was introduced by the Remuneration Tribunal, which was established under the Act to ensure that the remuneration and conditions of office of public office holders are fair and reasonable. The primary objective of this Determination is to outline the entitlements for compensation in cases of early loss of office, effective from 1 July 2012. It also supersedes the previous Determination 2007/07, ensuring that there is an updated and relevant framework for compensation. This Determination aligns with the human rights and freedoms recognised in international instruments, as stipulated in the Human Rights (Parliamentary Scrutiny) Act 2011, and does not contravene any applicable rights or freedoms.
Scope and Application
The Remuneration Tribunal Determination 2012/10 addresses the provision of compensation for loss of office for holders of public office, as authorised by the Remuneration Tribunal Act 1973. This legislation applies to individuals who occupy public offices, providing them with compensation in the event of their early departure from such roles. The Tribunal's determination is influenced by consultations conducted in line with established practices and ensures compatibility with human rights as recognised by the Human Rights (Parliamentary Scrutiny) Act 2011. The scope of the Act extends to the Commonwealth and its authorities, and it supersedes previous determinations such as the Determination 2007/07. Notably, this determination does not adversely affect the rights of individuals or impose any liability on them, as per the Legislative Instruments Act 2003. The compensation entitlements outlined in the determination are effective from 1 July 2012, providing a clear and updated framework for public office holders in relation to loss of office compensation.
Key Provisions
The Determination (2012/10) by the Remuneration Tribunal, as outlined in Part 1, clarifies the authority and effect of the legislation. Specifically, Clause 1.1 confirms the Tribunal's authority to make this determination under Section 7(3) and 7(4) of the Remuneration Tribunal Act 1973 (the Act). Clause 1.2 sets the date of effect as 1 July 2012, replacing the previous Determination 2007/07 which ceased on 30 June 2012 as per Clause 1.3. Clause 1.4 and 1.5 introduce definitions for "Reference Salary" and "Employer's Superannuation Contribution," essential for understanding the compensation provisions detailed in Part 2.
Under Part 2, the Determination outlines the entitlements for compensation for early loss of office, effective from 1 July 2012. These entitlements are set to provide financial support to public office holders who experience an early termination of their office. The specific compensation calculations and eligibility criteria are detailed within this part of the Determination, ensuring that public office holders who lose their positions before the end of their term are adequately compensated.
The Determination imposes specific obligations and requirements on the parties it governs. Public office holders must meet the eligibility criteria specified in Part 2 to claim compensation. The Remuneration Tribunal is required to review and determine the amount of compensation based on the defined terms such as "Reference Salary" and "Employer's Superannuation Contribution." Additionally, the Determination ensures that any retrospective application does not adversely affect the rights of individuals, in accordance with subsection 12(2) of the Legislative Instruments Act 2003.
There are no specific offences, penalties, or civil/criminal consequences outlined in this Determination for breach. However, the Remuneration Tribunal retains the authority to enforce compliance with the provisions set forth in this Determination. Any failure to adhere to the stipulated requirements could potentially lead to disputes or legal challenges, which would then be addressed within the existing legal framework. The focus remains on ensuring fair and equitable compensation for eligible public office holders affected by early loss of office.