Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697644373978.pdf (Australia)
EXPLANATORY STATEMENT Issued by the authority of the Assistant Minister for Regional Development and Territories Parliamentary Secretary to the Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development.

Norfolk Island Act 1979 Norfolk Island Continued Laws Amendment (Employment) Ordinance 2020 Authority The Norfolk Island Act 1979 (Norfolk Island Act) provides for the government of the Territory of Norfolk Island (Norfolk Island).
Section 19A of the Norfolk Island Act provides that the Governor-General may make Ordinances for the peace, order and good government of Norfolk Island.

The Norfolk Island Continued Laws Amendment (Employment) Ordinance 2020 (the Ordinance) is made under section 19A of the Norfolk Island Act.
The Ordinance amends the Norfolk Island Continued Laws Ordinance 2015 (the Continued Laws Ordinance) with the effect of amending the Employment Act 1988 (NI) (the Employment Act) and the Employment Regulations 1991 (NI) (the Employment Regulations).

Under section 17 of the Norfolk Island Act, Norfolk Island laws continued in force under either section 16 or 16A of the Norfolk Island Act may be amended or repealed by an Ordinance made under section 19A.
Purpose and operation The primary purpose of the Ordinance is to amend the Employment Act to allow for a new service provider to administer the Norfolk Island Workers’ Compensation Scheme (the Scheme) established under the Employment Act.

In 2018, the Norfolk Island Regional Council (NIRC) advised the Department of Infrastructure, Transport, Regional Development and Communications (the Department) it was not in a position to continue administering the Scheme.
As the largest employer on Norfolk Island, there is potential for conflicts of interest to arise if NIRC continues to deliver this service.

The Department has since engaged a nationally recognised workers’ compensation service provider with experience managing workers’ compensation schemes across multiple jurisdictions to take over administration of the Scheme.
The Ordinance makes the following amendments to the Employment Act and repeals the Employment Regulations to enable the new service provider to start delivering this service.

Employment Liaison Officer Under the Employment Act, the Employment Liaison Officer (ELO) is responsible for the management and control of the Scheme.

To allow a new service provider to administer the Scheme, the Ordinance amends provisions relating to the ELO’s appointment, powers and functions.
1 Prior to amendment, the ELO was appointed by the Chief Executive Officer of the NIRC and is an employee of the NIRC.

The amendments instead allow the Commonwealth Minister with responsibility for Norfolk Island to appoint an SES employee in the Department as the ELO.
Revised delegation provisions provide for the ELO to delegate functions or powers relevant to the day-to-day administration of the Scheme to relevant staff of the new service provider if satisfied the person has appropriate qualifications or expertise.

An ELO could be satisfied in this regard if the relevant person has: • Experience managing claims for compensation under other Australian workers’ compensation schemes.

• Knowledge and understanding of the Norfolk Island Scheme.
• The ability to work effectively with claimants, employers and medical practitioners.

• Time management and communication skills and the ability to work autonomously and as part of a team.

No specific qualifications are needed to manage workers’ compensation claims, however, the fields of study which are relevant to these roles include allied health, public administration, business management and law.
The ELO who, prior to the amendments, was an employee of the NIRC, was also responsible for the management and control of inspectors and had some functions under Part 4 of the Employment Act relating to safe working practices.

To ensure these powers and functions remain with the NIRC (which employs inspectors and is responsible for work health and safety regulation) these powers and functions have been transferred to the Chief Executive Officer.
Compensation The Ordinance also amends the Employment Act to allow for easier interpretation of provisions relating to eligibility for compensation and to improve the way claims for compensation are assessed.

Under the Employment Act, employers are required to have an insurance policy for the full amount of their liability to pay compensation unless they are members of the public scheme.
Amendments to existing provisions relating to this requirement make this requirement clearer and update the offence provision to comply with modern drafting standards.

The substance of the offence and the penalties imposed have not changed.

While there are normally limitations on the use of penalties in delegated legislation, the special legislative framework applying to Norfolk Island permits these provisions as they relate to an existing penalty relevant to a state-level matter.
More information about this can be found in the section titled ‘Special legislative framework’ below.

Amendments to the Employment Act also allow for the powers and functions of the Medical Superintendent to be performed by any registered medical or health practitioner or by the ELO.

This gives employees greater flexibility when seeking medical treatment for a work-related accident and makes the assessment of claims for compensation simpler.
Under rewritten provisions relating to compensation for medical treatment, the ELO will be responsible for approving any costs relating to medical treatment payable as compensation.

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