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Exceptions for Transfer of Non-resident Workers, RPPL 7-16 2006

SEVENTH OLBIIL ERA KELULAU
RPPL No. 7-16
Third Special Session, February 2005
(Re: as Senate Bill No. 7-54, SD2, HD1)

AN ACT

To amend 30 PNC, §164(a) to make certain exceptions to the prohibition against transfers of nonresident workers, and for related purposes.

THE PEOPLE OF PALAU REPRESENTED IN THE OLBIIL ERA KELULAU DO ENACT AS FOLLOWS:

Section 1. Legislative findings. The Olbiil Era Kelulau finds that 30 PNC §164(a), which prohibits for five (5) years the transfer of nonresident workers from one employer to another in the Republic, is very broad. This limitation has created, in certain circumstances, unintended consequences of making the recruitment of nonresident workers by local employers costly, both in terms of time and money. For example, this provision does not serve the best interest of our business community in circumstances where the former employer of a nonresident worker has died or if the employer sells the business or if a new employer takes over the business the nonresident worker is working at. Often the employment of the nonresident worker is needed by another employer. The Olbiil Era Kelulau finds that the interest of the employer is protected by this section. Nonresident workers, who are otherwise eligible to be employed by another employer, may transfer employment for the duration of the term of his or her contract in cases where the employer of the nonresident worker has died, or when the business the nonresident worker is working at is sold or transferred, or if a new employer takes over the business or place where the nonresident worker is working at, or when the employer is found guilty of a crime. After the transfer, the nonresident worker will be eligible to be renewed by the new employer according to the current labor laws.

Section 2. Amendment. 30 PNC § 164(a) is hereby amended to read as follows:

"§164. Determination to permit employment of nonresident workers.

(a) Upon receipt of notice from the employment service officer of those positions which the employer requires, and for which no resident workers are available, the Chief shall determine whether the employment of such nonresident workers will be in the best interest of the Republic, shall determine under what conditions the employer should be authorized to hire nonresident workers for those positions, and for each authorized nonresident worker shall issue an employment permit and identification certificate valid for a maximum period of two years, subject to renewal for further periods of two years employment of the worker with the same employer. A nonresident worker shall be ineligible for employment by any other employer in the Republic for five years following the date of termination of any previous employment in the Republic, unless the nonresident worker meets the requirements below. For purposes of this Section, this provision shall not apply to spouses of Palauan citizens employed as nonresident workers. A nonresident worker maybe eligible for employment by another employer for the duration of the term in his or her contract, and any eventual renewal after the duration of the term if applicable, if the nonresident worker is otherwise eligible to be hired by another employer, and:

(i) his or her current employer has died and the employer's legal successor agrees to retain the employment of the nonresident worker; or

(ii) his or her current employer sells the company or business that the nonresident worker is employed at or otherwise transfers the management of the company or business that the nonresident worker is employed at to another employer, and the seller or transferor and the buyer or transferee agree that the buyer or transferee shall retain the nonresident worker as an employee, or when a sole proprietor incorporates the business that the nonresident worker is employed at; or

(iii) his or her employer is found guilty by a court of law for any crime where the nonresident worker, or a dependent of the nonresident worker, is a victim; or

(iv) the business dissolves.

. . . . ."

Section 3. Effective date. This Act shall take effect upon its approval by the President of the Republic of Palau, or upon its becoming law without such approval.

PASSED: February 28, 2006
Approved this 16th day of March 2006.

/s/
Tommy E. Remengesau, Jr.
President
Republic of Palau