The bill, introduced into HOD by Delegate Mario Gulibert, proposes “amend Title 30 of the Palau National Code (PNC) to clarify the employer’s obligation to provide for return transportation of nonresident workers, and to create a procedure to fairly resolve disputes arising out of termination of employment of nonresident workers.”
The Protection of Resident Workers Act, in 30 PNC section 165, requires from employers of non-Palauan citizens to file a nonresident employment agreement with the government. The agreement stipulates that the employer, at the end of the term of employment of his or her employee, pay for the costs of his or her employee’s return trip to the country the employee originates from – regardless of the circumstances that terminates the employee’s employment status.According to findings stated in the bill, this particular provision of 30 PNC is a buffer that prevents the unnecessary costs to the national government; and was not intended to put employers at a disadvantage.The introduction of HB No.7-221-16 is a result of cases in which nonresident workers have been terminated from employment, but are unable to return home due to their inability to pay for their transport home; and moreover, their employers refuse to pay either until determination of the reasons for termination of work contract between the workers and the employers are determined – despite section 165 of 30 PNC.The Chief of the Division of Labor has the authority under section 181-188 of 30 PNC to “conduct investigations and hold hearings for alleged violations of the Protection of Resident Workers Act. Pursuant to section 181-188 of 30 PNC, the Chief of Labor is duly authorized; however, it is not clearly stated that the chief has the authority to make an official decision about any dispute resulting in nonresident employment termination and who is to pay for the costs of transport of nonresidents return trip home.The current proposed amendments to 30 PNC stated in HB No.7-221-16 clearly specifies that employers “acknowledge that no entity of the Government of the Republic of Palau shall be responsible for the costs of returning nonresidents workers” back to their home countries; and that the Chief of the Division of Labor shall have the authority to issue an order, based on investigations and hearings, determining who is at fault in any dispute between a nonresident employee and employer; and in the process who should bear the cost of the employee’s transport home.The bill has been forwarded to the Senate.
