Remuneration Tribunal (Miscellaneous Provisions) Amendment Regulations 2001 (No. 1) 2001 No. 59
EXPLANATORY STATEMENT
Statutory Rules 2001 No. 59
(Issued by the authority of the Minister for Finance and Administration)
Remuneration Tribunal Act 1973
Remuneration Tribunal (Miscellaneous Provisions) Amendment Regulations 2001 (No. 1)
Section 13 of the Remuneration Tribunal Act 1973 (the Act) provides that the Governor-General may make Regulations for the purposes of this Act.
Subsection 5(2A) of the Act provides that one of the functions of the Remuneration Tribunal is to provide advice to employing bodies in relation to terms and conditions (including remuneration and allowances) on which principal executive offices (PEOs) are to be held.
Paragraph 3(4)(ra) identifies a PEO, in the terms of the legislation, as an office or appointment declared by Regulation to be a PEO. Subsection 3(1) of the Act defines employing body as the entity declared by Regulation to be the employing body of the PEO.
The purpose of the new Regulations is to establish twenty new PEOs.
The Remuneration Tribunal has established a PEO structure to enable a PEO and its employing body to negotiate, within parameters set by the Tribunal, productivity and work value increases in remuneration from one year to the next.
Any statutory office holder or head of a Commonwealth entity can be declared a PEO unless there is a public policy reason for their remuneration to be set by the Remuneration Tribunal.
The employing body will have the authority to set the remuneration for the designated PEO pursuant to Section 12C of the Act and within parameters established by the Remuneration Tribunal.
The new Regulations amend Schedule 1A to the Principal Regulations to add twenty PEOs and to list each PEO’s employing body.
The new Regulations commenced on the date of gazettal.
Overview
The Remuneration Tribunal (Miscellaneous Provisions) Amendment Regulations 2001 (No. 1) were enacted to address the need for establishing new principal executive offices (PEOs) within the framework of the Remuneration Tribunal Act 1973. These regulations were issued by the authority of the Minister for Finance and Administration, and their primary objective is to expand the existing PEO structure by declaring twenty additional offices as PEOs. This legislative amendment allows for the flexibility in remuneration negotiations between PEOs and their employing bodies, within the parameters set by the Remuneration Tribunal. By recognising these new PEOs, the regulations aim to streamline the process for determining terms and conditions of employment, including remuneration and allowances, for these offices. The new PEO structure is designed to facilitate productivity and work value increases in remuneration, thereby providing a more adaptable and responsive framework for executive office remuneration.
Scope and Application
The Remuneration Tribunal (Miscellaneous Provisions) Amendment Regulations 2001 (No. 1) pertains to the Remuneration Tribunal Act 1973, which applies to the establishment and regulation of principal executive offices (PEOs) within Commonwealth entities, as well as the remuneration and allowances for the office holders of these positions. The Act applies to statutory office holders or heads of Commonwealth entities who are designated as PEOs, unless there is a public policy reason for their remuneration to be determined by the Remuneration Tribunal. The employing bodies, which are entities declared by regulation to be responsible for the PEOs, are also subject to the provisions of this Act as they have the authority to set remuneration within parameters set by the Tribunal. The Regulations extend the scope of the Act by amending Schedule 1A of the Principal Regulations to include twenty new PEOs and their respective employing bodies, thus increasing the number of positions subject to the Tribunal's oversight and the employing bodies' negotiation powers in setting remuneration. The Regulations themselves commenced on the date of their gazettal, ensuring immediate effect on the entities and individuals they govern.
Key Provisions
The Remuneration Tribunal (Miscellaneous Provisions) Amendment Regulations 2001 (No. 1) primarily establish twenty new principal executive offices (PEOs) under Section 13 of the Remuneration Tribunal Act 1973 (the Act). The primary operative sections of these Regulations are those that amend Schedule 1A of the Principal Regulations to add these twenty new PEOs and specify the employing bodies for each. This amendment is in line with the functions of the Remuneration Tribunal as outlined in subsection 5(2A) of the Act, which include advising employing bodies on terms and conditions for PEOs.
These Regulations impose specific obligations on the employing bodies designated for the new PEOs. Pursuant to subsection 3(1) of the Act, these bodies will have the authority to set the remuneration for their respective PEOs, but they must do so within the parameters established by the Remuneration Tribunal. This ensures that the remuneration remains aligned with productivity and work value increases negotiated within the framework set by the Tribunal. The employing bodies must therefore engage in negotiations with the office holders or heads of the PEOs to determine these terms, and they must adhere to the guidelines and limits set by the Tribunal to maintain fairness and consistency across the PEO structures.
Failure to comply with the provisions outlined in these Regulations can lead to various consequences. While the Regulations do not explicitly detail offences or penalties for non-compliance, breaches of the Act or Regulations governing the Remuneration Tribunal could potentially result in legal actions. Such actions might include civil penalties for non-compliance or criminal charges in cases of more severe breaches, depending on the nature and impact of the violation. The maximum penalties would be determined by the relevant courts, but they could include fines or other sanctions as deemed appropriate by the judicial authorities.
The Regulations also ensure that the employing bodies have the autonomy to set remuneration within the parameters set by the Tribunal, provided there is no public policy reason for the Remuneration Tribunal to set the remuneration directly. This balance of authority is crucial in maintaining flexibility in remuneration negotiations while ensuring that public policy objectives are not compromised. The Regulations thereby create a structured yet adaptable framework for managing the remuneration of PEOs across various Commonwealth entities.