Overview:
A new bill in the Palau National Congress aims to establish the country’s first national workplace safety law. Senate Bill 12-59 would create safety standards, authorize workplace inspections and allow regulators to halt dangerous operations. Supporters say the measure could reduce workplace injuries, but questions remain about enforcement and costs for businesses.
By: Eoghan Olkeriil Ngirudelsang
Ngerulmud, Palau – Congress is laying the foundations of occupational safety standards and safer workplaces in Palau through the newly introduced Senate Bill No.12-59.
This bill for an act will amend Title 11 of the Palau National code adding a new chapter 22 relating to occupational and workplace safety.
The bill will task the National Safety Officer of the Ministry of Public Infrastructure Industries to serve as a ‘Regulator’ – that he “should be responsible for setting minimum standards for work places, inspecting work places for compliance and pausing work where a work place is unsafe for workers or for members of the public”.
The Regulator should develop minimum standards for workplaces involving:
- Construction
- Mining or quarry operations
- Chemical or petroleum products transport or storage
- Warehousing
- Large trucks or boat operations
- Other hazardous places
The regulator will be responsible for identifying hazardous and health hazards and developing minimum standards to mitigate and control them in a cost-effective manner. The regulator will be allowed to enter and inspect any workplaces and will also have the authority to fine any employer who fails to meet such minimum standards.
The fines will be:
- $1,000 for first finding
- $5,000 for second finding
- $10,000 for any subsequent finding
Employers will incur an additional $10,000 fine for any of the following willful or reckless actions:
- Willfully failing to meet the minimum safety standard.
- Recklessly failing to permit inspection of the workplace.
- Willfully disregarding a stop operating order.
Furthermore, an employer who willfully orders employees to disregard a stop operating order will be fined $10,000 for each employee who complies with that order.
Finally, the regulator will suspend or terminate an employer’s business license if the employer accrues more than 2 fines in a calendar year.
Introducer Sen. Melairei stated that “the bill shall be effective on February 28, 2027, or a year after the bill comes into effect, giving ample time for companies and different workplaces to transition into full compliance with the minimum standards to be developed.
While the bill garnered unanimous support, Senator Rukebai Inabo commented that the proposal should take into consideration small business operations so that compliance with this law will not be too costly”.
While this bill is far-reaching, it provides exemptions to self-employed persons and businesses with fewer than 25 employees. It also exempts those whose workplaces are comprehensively regulated in some other way, like the Belau National Airport, fishing or cargo vessels carrying another state’s flag, or foreign workers and contractors who are already subject to comprehensive workplace standards.
Melairei said, “This is a right foot in the door, and we plan to strengthen these regulations as companies and workplaces adapt over time.”
Palau has been a member of the International Labor Organization since 2012.
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