Committee for Employment & Social Security - P.2016/39
Whether they are of the opinion to approve the draft Ordinance entitled "The Social Insurance (Guernsey) Law (Amendment) Ordinance, 2016", and to direct that the same shall have effect as an Ordinance of the States.
This proposition has been submitted to Her Majesty's Procureur for advice on any legal or constitutional implications in accordance with Rule 4(1) of the Rules of Procedure of the States of Deliberation and their Committees.
EXPLANATORY MEMORANDUM
This Ordinance amends the Social Insurance (Guernsey) Law, 1978 ("the 1978 Law") in order to make provision for the parental benefits approved by the States at their meeting on 18th February, 2016. It also implements a Resolution of the States made on 26th February, 2015 relating to the disclosure of specified information by the Administrator under the 1978 Law to officers appointed under the Minimum Wage (Guernsey) Law, 2009.
In summary, the amendments to the 1978 Law create 4 new benefits known as adoption grant, maternal health allowance, newborn care allowance and parental allowance. Together with maternity grant the benefits are referred to collectively as "parental benefit". The amendments also repeal the provisions of the 1978 Law relating to maternity allowance, which is in effect replaced with the new benefits known as maternal health allowance and newborn care allowance.
Clauses 1 to 7 of the Ordinance make a variety of amendments to various provisions of the 1978 Law in order to create the new benefits and insert, at the relevant places, appropriate references to parental benefit. Clause 8 inserts new sections into the 1978 Law numbered 28 to 28C. Inserted section 28 sets out the entitlement of an insured person to adoption grant, which is available upon the adoption of a child. Inserted section 28A prescribes the entitlement of a woman to a maternal health allowance and the maximum period for which it is payable. Inserted section 28B sets out entitlement to newborn care allowance and the maximum period for which it is payable, which is for a period of 26 weeks less any period during which a maternal health allowance has been paid in respect of the child in question. The provisions of the inserted section (see 28B(3)) provide in particular that only one person may at any one time be the primary care-giver of a child for the purposes of entitlement to the allowance. Inserted section 28C provides for entitlement to parental allowance and the period for which a parental allowance is payable. The provisions are intended to create an allowance that is similar to a combination of maternal health allowance and newborn care allowance and is payable to an adopter for a maximum period of 26 weeks commencing when the child is placed for adoption or the adopter commences adoption leave under the Maternity Leave and Adoption Leave (Guernsey) Ordinance, 2016.
Clause 9 makes amendments to section 29 of the 1978 Law (currently entitled "supplementary provisions as to maternity benefit"). In particular it amends the title to "supplementary provisions as to parental benefit" and inserts a subsection enabling the Committee for Employment & Social Security by regulations to make modifications and exceptions to, and exemptions from, any provision of the 1978 Law relating to entitlement to parental benefit and to provide for claims for parental benefit. Under these powers the Committee intends, for example, to prescribe the maximum number of "switches" that can be made by parents claiming newborn care allowance who wish to share the provision of childcare. Clauses 10 to 12 make further minor amendments to relevant sections of the 1978 Law in order to give effect to parental benefit.
Clause 13 amends section 111 of the 1978 Law by inserting provision (new subsections numbered (6) and (7)) to enable the Administrator and any person authorised by him to disclose specified information to any officer appointed under section 13(1) of the Minimum Wage (Guernsey) Law, 2009 where in the course of an inspection carried out by officers under the 1978 Law a breach of any provision of the Minimum Wage (Guernsey) Law, 2009 is suspected. The specified information includes, the name and address of the employer suspected of breaching the 2009 Law, the name, address and social insurance number of any employee in respect of whom the breach is suspected, and the evidence upon which it is suspected that there has been a breach of any provision of the Minimum Wage (Guernsey) Law, 2009.
Clauses 14 and 15 make appropriate amendments to the First Schedule (which provides for contribution conditions) and Sixth Schedule (which provides a glossary of defined expressions) to the 1978 Law.
Clause 16 amends paragraph 11 of the First Schedule to the Supplementary Benefit (Implementation) Ordinance, 1971 in order to provide that maternity grant and adoption grant under the 1978 Law are disregarded for the purposes of calculating a person's resources when determining eligibility to a supplementary benefit.
Clause 17 contains transitional provisions applicable to women who on 31st December, 2016 (the day preceding the commencement of the Ordinance) are in receipt of a maternity allowance. The key provisions of the clause have the following effects -
(a) a woman whose date of confinement is expected to fall before 1st January2017 and who gives birth to a child before that date will continue to be entitled to maternity allowance under the 1978 Law as it had effect on 31st December 2016 and disregarding the provisions of the Ordinance,
(b) a woman whose date of confinement is expected to fall on or after 1st January 2017 or who gives birth to a child on or after that date (although her expected date of confinement falls before that date) ("a qualifying woman") and in respect of whom the compulsory maternity leave period under the Maternity Leave and Adoption Leave (Guernsey) Ordinance, 2016 has not expired, will be entitled to a maternal health allowance payable for the period beginning on 1st January 2017, and ending on the expiration of the compulsory maternity leave period,
(c) a qualifying woman in respect of whom the compulsory maternity leave period expired on or before 31st December 2016, will be entitled to a new born care allowance payable for the appropriate period beginning on 1st January 2017.
Clause 17(4) limits the period for which newborn care allowance is payable under the transitional arrangements to 26 weeks less any period during which maternity benefit or maternal health allowance has been paid in respect of a child.
Under clause 21 the Ordinance comes into force on 1st January, 2017.
