Third

Session, 48th General Assembly

Elizabeth II, 2018

BILL 24

AN ACT RESPECTING

THE RESTRAINT OF SALARY AND EXTINGUISHMENT OF SEVERANCE PAY FOR

NON-REPRESENTED PUBLIC SECTOR EMPLOYEES AND STATUTORY OFFICERS OF THE

PROVINCE

Received

and Read the First Time ................................................................

Second

Reading ............................................................................................

Committee .....................................................................................................

Third

Reading ...............................................................................................

Royal

Assent .................................................................................................

HONOURABLE TOM

OSBORNE

Minister Responsible

for Human Resource Secretariat

Ordered to be printed by

the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would enact the Salary Restraint and Extinguishment of

Severance Pay Act .

The Bill would

prohibit an increase in the pay

scales of non-represented public sector employees and statutory officers during

the period beginning on June 1, 2018 and ending on March 31, 2020; and

fix severance pay entitlement

for qualifying employees as of May 31, 2018, terminate any further accrual of

severance pay and eliminate any future severance pay.

A BILL

AN ACT RESPECTING THE RESTRAINT OF SALARY AND

THE EXTINGUISHMENT OF SEVERANCE PAY FOR NON-REPRESENTED PUBLIC SECTOR EMPLOYEES

AND STATUTORY OFFICERS OF THE PROVINCE

Analysis

Short title

Definitions

Application of Act

Crown bound

PART

SALARY RESTRAINT MEASURES

No increase in pay scales

No change on renewal

Step progressions

PART

SEVERANCE PAY

Severance pay

Severance pay-qualifying employees

Request for severance pay payment

deferral

Payment to estate

Non-qualifying employees

Severance pay extinguished

Rights unaffected

PART

III

GENERAL

Powers and duties of Treasury Board

Powers and duties of House of Assembly

Management Commission

Conflict

No future compensation

No liability

Schedule

Schedule

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

Short title

1. This

Act may be cited as the Salary Restraint

and Extinguishment of Severance Pay Act .

Definitions

2. In

this Act

(a) "base salary" means the amount of

remuneration paid in a year to a non-represented public sector employee or statutory

officer for the performance of employment duties but does not include overtime

pay, bonuses and shift premiums ;

(b) "clerk" means the Clerk of the House

of Assembly;

(c) "compensation" means any consideration or remuneration, regardless

of its nature or form, including base salary, retainers, benefits, bonuses,

allowances, honorariums, travelling and living expenses paid, payable or

provided, directly or indirectly, to or for the benefit of a person who

performs duties and functions that entitle the person to be paid;

(d) "compensation plan" means

provisions, however established, for the determination and administration of

compensation, and includes provisions established bilaterally between a public

sector employer and a statutory officer or a non-represented public sector employee,

unilaterally by the public sector employer or by or under any Act;

(e) "employee of a public sector

employer" means

(

i) an employee of the executive branch,

(ii) an employee of the legislative branch, and

(iii) an employee of a public body; and

(f) "executive branch" means a

department created under the Executive

Council Act or a branch of the executive government of the province;

(g) "government" means

(

i) the executive branch, and

(ii) the legislative branch;

(h) "House of Assembly Management

Commission" means the commission continued under

section 18 of the House of Assembly Accountability, Integrity

and Administration Act ;

(i) "House of Assembly service" means

House of Assembly service referred to in

section 25 of the House of Assembly Accountability, Integrity and Administration Act ;

(j) "legislative branch" means the House

of Assembly and statutory offices;

(k) "non-represented public sector employee"

means an employee of a public sector employer who is not a represented public

sector employee on May 31, 2018 or at any time during the salary restraint period;

(l) "public body" means an entity listed

in the Schedule;

(m) "public sector employer" means

(

i) government, and

(ii) a public body;

(n) "public sector employer severance pay policy"

means a policy established by a public sector employer that authorizes the

payment of an amount, other than payment in lieu of notice, to be paid to a

non-represented public sector employee on the date the non-represented public

sector employee resigns, retires or is terminated from his or her employment;

(o) "qualifying employee" means a

non-represented public sector employee or statutory officer who has, as of May

31, 2018, one or more complete years of continuous service with a public sector

employer that has adopted a severance pay policy as part of its compensation

plan before the coming into force of this Act;

(p) "represented public sector employee"

means a person employed with a public sector employer in a position represented by a bargaining agent certified or

recognized under

an Act of the province;

(q) "salary restraint period" means the

period beginning on June 1, 2018 and ending on March 31, 2020;

(r) "severance pay" means an amount payable

to a qualifying employee and calculated in accordance with

section 8;

(s) "severance pay policy" means

(

i) the Treasury Board Severance Pay Policy, or

(ii) a public sector employer severance pay policy;

(t) "speaker" means the Speaker of the

House of Assembly;

(u) "statutory office" means a statutory

office as defined in paragraph 2(

r) of the House

of Assembly Accountability, Integrity and Administration Act ;

(v) "statutory officer" means

(

i) the Information and Privacy Commissioner,

(ii) the Auditor General,

(iii) the Child and Youth Advocate,

(iv) the Chief Electoral Officer,

(

v) the Citizens' Representative,

(vi) the Commissioner for Legislative Standards,

and

(vii) the Seniors' Advocate;

(w) "step progression" means an increase

in base salary determined in accordance with a pay scale and based on the anniversary

of the date a non-represented public sector employee or statutory officer

commenced employment with the public sector employer;

(x) "Treasury Board Severance Pay Policy"

means a policy established by Treasury Board that authorizes the payment of an

amount, other than payment in lieu of notice, to be paid to a non-represented public

sector employee or statutory officer on the date the non-represented public

sector employee or statutory officer resigns, retires or is terminated from his

or her employment; and

(y) "year" means a calendar year.

Application of

Act

(1) This Act applies to

(

a) public sector employers;

(

b) non-represented public sector employees; and

(

c) statutory officers.

(2) This Act does not apply to

(

a) represented public sector employees;

(

b) a judge appointed under the Provincial Court Act, 1991 ;

(

c) a Member of the House of Assembly; and

(

d) political support staff whose base salary is determined

in accordance with the classification chart for political support staff, except

as provided in

section 14.

Crown bound

4. This

Act binds the Crown.

PART I

SALARY RESTRAINT MEASURES

No increase in pay

scales

employment or a compensation plan, a public sector employer shall not increase

the base salary amounts in its pay scales for non-represented public sector employees

and statutory officers during the salary restraint period.

No change on

renewal

(1) A

public sector employer shall not increase the compensation payable to a

non-represented public sector employee or statutory officer who renews his or

her employment contract or is reappointed during the salary restraint period.

(2) Where a non-represented public sector employee

or statutory officer

(

a) remains employed in the same position but

executes a new employment contract, the new contract is considered to be a

renewal for the purpose of this section; or

(

b) remains in office but has a new appointment to

the same office, the new appointment is considered to be a reappointment for

the purpose of this section.

Step progressions

7. Nothing

in sections 5 and 6 affect a non-represented public sector employee's or

statutory officer's entitlement to any step progressions that form part of his

or her compensation plan.

PART II

SEVERANCE PAY

Severance pay

(1) Severance

pay shall be payable to a qualifying employee of a public sector employer that has

adopted the Treasury Board Severance Pay Policy and shall be calculated by

multiplying the qualifying employee's number of complete years of continuous service

by his or her weekly base salary as of May 31, 2018 to a maximum of 20 weeks

base salary.

(2) Severance pay shall be payable to a qualifying

employee of a public sector employer that has adopted a public sector employer

severance pay policy and shall be calculated in accordance with the public

sector employer severance pay policy.

Severance pay-qualifying

employees

(1) Severance

pay payable to a qualifying employee shall be fixed as of May 31, 2018 and the

qualifying employee shall not accrue any further entitlement to severance pay.

(2) Severance pay payable to a qualifying employee

shall be paid in a lump sum payment on the earlier of

(

a) the date the qualifying employee resigns,

retires or is terminated from his or her employment; or

(

b) March 31, 2019.

Request for severance

pay payment deferral

(1) Notwithstanding

subsection 9(2), severance pay payable to a qualifying employee under

section 9

may be deferred where a qualifying employee submits a written request to the public

sector employer in the form determined by the public sector employer on or

before December 31, 2018.

(2) Where a qualifying employee defers payment of

his or her severance pay under subsection (1), the qualifying employee may request

payment of his or her severance pay at any time by submitting a written request

to the public sector employer in the form determined by the public sector

employer.

(3) A qualifying employee who submits a request

under subsection (2) shall be paid his or her severance pay not later than June

30 of the year following the year in which the request was submitted.

(4) Payment of severance pay deferred under subsection

(1) shall be paid to the qualifying employee no later than the date the qualifying

employee resigns, retires or is terminated from his or her employment.

(5) Where a qualifying employee defers payment of

his or her severance pay under subsection (1), interest shall not accrue on the

severance pay or be payable to the qualifying employee when he or she receives

his or her severance pay.

Payment to estate

(1) Where

a qualifying employee of a public sector employer that has adopted the Treasury

Board Severance Pay Policy dies before receiving his or her severance pay under

this Act, the qualifying employee's severance pay shall be paid to the

qualifying employee's estate.

(2) Where a qualifying employee of a public sector

employer that has adopted a public sector employer severance pay policy dies before

receiving his or her severance pay under this Act, the qualifying employee's

severance pay shall be paid

(

a) in accordance with the public sector employer

severance pay policy; or

(

b) to the qualifying employee's estate, where the

public sector employer severance pay policy does not have a provision for the

payment of severance pay on the death of a qualifying employee.

Non-qualifying

employees

12. A

non-represented public sector employee or a statutory officer who is not a qualifying employee on

May 31, 2018 shall not

(

a) accrue entitlement to severance pay; or

(

b) receive severance pay at any time.

Severance pay extinguished

(1) Upon the coming into force of this Act,

(

a) all rights of non-represented public sector

employees and statutory officers to accrue severance pay are extinguished;

(

b) all rights of non-represented public sector

employees and statutory officers to receive severance pay are extinguished except

in accordance with this Part; and

compensation plan shall not provide for the accrual, entitlement or payment of

severance pay to non-represented public sector employees and statutory

officers.

(2) Subsection (1) applies regardless of whether a

non-represented public sector employee or statutory officer was a qualifying employee

on May 31, 2018.

Rights unaffected

14. Where

before the coming into force of this Act,

(

a) an individual is entitled to a payment under a

severance pay policy;

(

b) that payment was deferred; and

(

c) the individual has not received that payment,

his or her right to receive that payment

shall be unaffected by this Act and that payment shall be paid in accordance

with subsection 9(2),

section 10 or

section 11.

PART III

GENERAL

Powers and duties

of Treasury Board

(1) Treasury

Board may exercise the powers and shall perform the duties in relation to this

Act that are necessary to enable it to determine whether the executive branch,

a public body or a non-represented employee of the executive branch or a public

body is complying with this Act.

(2) Treasury Board may require the executive

branch, a public body or a non-represented employee of the executive branch or

a public body to provide information and documentation that Treasury Board considers

necessary to enable it to determine compliance with this Act.

(3) Where Treasury Board determines that the

executive branch or a public body is not complying with this Act, it may issue

a directive that it considers appropriate to ensure compliance, including a directive

(

a) requiring compliance with this Act; or

(

b) prohibiting the executive branch or a public

body from implementing an increase in base salary amounts in its pay scales that

do not comply with this Act.

Powers and duties

of House of Assembly Management Commission

(1) The

House of Assembly Management Commission may exercise the powers and shall

perform the duties in relation to this Act that are necessary to enable it to

determine whether the legislative branch, the House of Assembly service, a

statutory officer or an employee of a statutory office is complying with this

Act.

(2) The House of Assembly Management Commission may

require the legislative branch, the House of Assembly service, a statutory

officer or an employee of a statutory office to provide information and

documentation that the House of Assembly Management Commission considers

necessary to enable it to determine compliance with this Act.

(3) Where the House of Assembly Management Commission

determines that the legislative branch is not complying with this Act, it may

issue a directive that it considers appropriate to ensure compliance, including

a directive

(

a) requiring compliance with this Act; or

(

b) prohibiting the legislative branch from

implementing an increase in base salary amounts in its pay scales that do not

comply with this Act.

Conflict

(1) Where

this Act conflicts with another Act or regulation, except the Financial Administration Act , this Act prevails.

(2) This Act prevails over any term and condition

of employment or provision of a compensation plan, whether established before

or after the coming into force of this Act, and where there is a conflict between

and that compensation plan are invalid to the extent of the conflict.

No future compensation

18. After

May 31, 2018 a compensation plan shall not include a severance pay policy, provide

for severance pay or an increase in compensation for a non-represented public

sector employee or statutory officer as an adjustment to provide for severance

pay or base salary increases that he or she did not or will not receive as a

result of the restraint measures in t his Act.

No liability

(1) A public sector

employer, a minister, employee or agent of a public sector employer, a

statutory officer, the speaker or the clerk is not liable for a cause of action

arising from, resulting from or incidental to the operation of this Act or

resulting from or incidental to the extinguishment of a right to or eligibility

for an increase in base salary or an accrual or entitlement to severance pay which

may have existed or accrued before the coming into force of this Act.

(2) An action or proceeding does not lie or shall

not be instituted or continued against a public sector employer, a minister, employee

or agent of a public sector employer, a statutory officer, the speaker or the

clerk based on a cause of action arising from, resulting from or incidental to

the operation of this Act or resulting from or incidental to the extinguishment

of a right to or eligibility for an increase in base salary or an accrual or

entitlement to severance pay which may have existed or accrued before the

coming into force of this Act.

Schedule

(1) When

the House of Assembly is not in session, the Lieutenant-Governor in Council

may, by order, amend the Schedule, but the order shall not continue in force

beyond the end of the next sitting of the House of Assembly.

(2) An order made under this

section is subordinate

legislation for the purpose of the

Statutes and Subordinate Legislation Act.

Schedule

Board of Commissioners of Public

Utilities

C.A. Pippy Park Commission

Central Regional Health Authority

College of the North

Atlantic

Conseil scolaire fr ancophone

provincial de Terre-Neuve-et-Labrador

Eastern Regional Health Authority

Human Rights Commission

Independent Appointments Commission

Labour Relations Board

Labrador-Grenfell Regional Health

Authority

Marble Mountain

Development Corporation

Mental Health Review

Board

Multi-Materials Stewardship Board

Municipal

Assessment Agency

Newfoundland and Labrador Centre for Health

Information

Newfoundland and Labrador

District

Newfoundland and

Labrador Film Development Corporation

Newfoundland and

Labrador Housing Corporation

Newfoundland and Labrador Liquor Corporation

Newfoundland and Labrador Medical Care Plan

NL 911 Bureau Inc.

NL Innovation

Council

Provincial Advisory

Council on the Status of Women

Provincial Information and Library

Resources Board

Public Procurement Agency

Public Service Commission

Royal Newfoundland Constabulary

Student Loan

Corporation of Newfoundland and Labrador

The Rooms

Corporation

Western Regional Health Authority

Workplace Health, Safety and

Compensation Review Division

Workplace NL

Queen's Printer