Fair Entitlements Guarantee Bill 2012

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Fair Entitlements Guarantee Bill 2012

Introduced into the House of Representatives on 11 October 2012
Portfolio: Education, Employment and Workplace Relations 

Committee view

1.2        The committee considers that the eligibility criteria in subsection 10(1)(g) of the bill is unlikely to raise issues of incompatibility with article 26 of International Covenant on Civil and Political Rights (ICCPR).

1.3        The committee considers that the information-sharing provisions in the bill would appear to be broadly consistent with the right to privacy in article 17 of ICCPR but seeks further information on particular aspects of the provisions to assist it to form a final view on their compatibility with the right to privacy.

1.4        Before forming a view on the compatibility of the bill with human rights, the committee seeks clarification from the Minister for Employment and Workplace Relations with regard to the compatibility of sections 11, 12 and 13 of the bill with the right to social security in article 9 of International Covenant on Economic, Social and Cultural Rights (ICESCR) and the right to non-discrimination in article 26 of International Covenant on Civil and Political Rights (ICCPR).

Purpose of the bill

1.5        This bill will replace the administrative General Employee Entitlements and Redundancy Scheme (GEERS) which currently assists employees who have lost their employment due to the liquidation or bankruptcy of their employer and who are owed certain employee entitlements.

1.6        The bill provides a scheme for the provision of financial assistance (an ‘advance’) to former employees whose employment has ended as the result of the winding up or bankruptcy of their employer. After making an advance, the Commonwealth assumes the individual’s right to recover these amounts through the winding up or bankruptcy process of their employer.

Compatibility with human rights

Right to non-discrimination

1.7        The statement of compatibility states that the bill engages the right to non-discrimination in article 26 of the International Covenant on Civil and Political Rights (ICCPR) because a person must be an Australian citizen or the holder of a permanent visa or a special category visa under the Migration Act 1958 to be eligible for an advance (new subsection 10(1)(g)).

1.8        Differential treatment on prohibited grounds will not be contrary to article 26 of ICCPR where it is reasonable, necessary and proportionate to achieving a legitimate aim. The statement explains that:

The Bill establishes an assistance scheme, which is intended to operate as a safety net for eligible persons. In this way it is analogous to social security legislation, and care has been taken to maintain some consistency with conditions of eligibility in analogous social security legislation. This is a legitimate objective.

The limitation is also reasonable in the context of the Bill’s purpose to provide a safety net for persons whose employment has ended due to the insolvency of their employer. Importantly, the restriction on eligibility in clause 10(1)(g) will not in any way affect an excluded person’s right to recover any unpaid entitlements from their former employer.

It is considered that the limitations on the right to equality and non-discrimination which are contained in clause 10(1)(g) of the Bill are not incompatible with the rights. The Bill pursues a legitimate objective and making citizenship, residency, or visa status a condition of eligibility for financial assistance under the Bill is reasonable, necessary and proportionate to that objective.

1.9        The committee considers that the eligibility criteria in subsection 10(1)(g) of the bill, which effectively restricts the payment of advances to individuals with established links to Australia, is unlikely to raise issues of incompatibility with article 26 of ICCPR as it appears to have a reasonable relationship of proportionality between the means employed and the objective sought to be realised.

Right to privacy

1.10      The statement of compatibility identifies that the information-sharing provisions in division 3 of the bill engages the right to privacy in article 17 of ICCPR because it enables personal information about an employer or employee to be disclosed ‘between the department and other parties who have a need for the information in relation to the administration of the bill’.

1.11      Article 17 of the ICCPR provides that no one shall be subjected to arbitrary or unlawful interference with their privacy.  Collecting, using, storing, disclosing or publishing personal information amounts to an interference with privacy.  In order for the interference not to be ‘arbitrary’, the interference must be for a legitimate objective and be reasonable, necessary and proportionate to that objective.

1.12      The statement helpfully sets out the justification for each of the relevant clauses and why the disclosure of personal information is considered necessary in each particular circumstance.

1.13      The committee considers that the information-sharing provisions in the bill would appear to be broadly consistent with article 17 of ICCPR as the interference with the right to privacy is likely to be necessary to achieve the aim of administering the scheme and the provisions appear to be drafted with sufficient precision to ensure that the degree of interference is proportionate to that objective. 

1.14      The committee however notes that persons to whom information may be disclosed include persons who are contracted by the Commonwealth for the purpose of passing an advance on to a recipient. The statement claims that these persons will be bound by relevant privacy clauses in their contract but this requirement does not appear to be prescribed in the bill.  Also, there is no offence for the unauthorised disclosure of personal information, which is a common feature in legislation which permits information to be disclosed for certain purposes.

1.15      The committee proposes to write to the Minister for Employment and Workplace Relations to seek his advice on the following matters before forming a final view on the compatibility of these provisions with article 17 of ICCPR:

Right to social security

1.16      The statement of compatibility states that the bill engages and promotes the right to social security in article 9 of the International Covenant on Economic, Social and Cultural Rights (ICESCR):

The bill establishes an assistance scheme, which is intended to operate as a safety net for persons whose employment has ended due to the insolvency or bankruptcy of their employer. This safety net could be characterised as ‘social insurance’ because it ensures that employees’ unpaid entitlements are met when their employer becomes insolvent. It thus seeks to protect individuals from lack of work-related income due to unemployment, and in this way, promotes the right to social security.

1.17      In addition to the condition that a person must be an Australian citizen, or the holder of a permanent visa or a special category visa under the Migration Act 1958 to be eligible for an advance (new subsection 10(1)(g)), the bill also sets out various categories of persons who are expressly excluded from eligibility. These comprise:

1.18      The statement of compatibility does not address whether excluding these particular categories of persons from the scheme is a reasonable limit on their right to social security or whether it may amount to discrimination contrary to article 26 of ICCPR.

1.19      The committee proposes to ask the Minister for Employment and Workplace Relations to provide an assessment of the compatibility of sections 11, 12 and 13 of the bill with the right to social security in article 9 of ICESCR and the right to non-discrimination in article 26 of ICCPR. The assessment should address whether the measures seek to achieve a legitimate objective and have a reasonable relationship of proportionality between the means employed and the objective sought to be realised.

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