Opinion Number. 1280

Subject

PUBLIC SERVICE ARBITRATION
INCREMENT GRANTED TO OFFICER PURSUANT TO AWARD: INCREMENT BECOMES PART OF SALARY BUT PAYMENT DEPENDS UPON APPROPRIATION

Key Legislation

ARBITRATION (PUBLIC SERVICE) ACT 1911, ss. 8, 14, 15

Date
Client
The Secretary, Postmaster-General's Department

The Secretary, Postmaster-General's Department, has asked for advice as to whether an officer in Class A2 of the Professional Division, who is, in pursuance of the award governing that Division, awarded an increment at the discretion of the Permanent Head, is legally entitled to that increment.

Clause 2 of the Professional Officers' Award, made on 26 April 1918, provides, inter alia, that: 'Officers in Class A2 may be awarded two increments of £100 each at the discretion of the Permanent Head'.


I understand that certain officers of the Postmaster-General's Department, who are in Class A2 of the Professional Division, and to whom the award applies, have been awarded increments in pursuance of this clause.


The award in question was made under the Arbitration (Public Service) Act 1911 which provides, inter alia, that the Court may make an award inconsistent with a law or regulation of the Commonwealth relating to the salaries or wages, rates of pay, or terms or conditions of service or employment of employees, and which requires the Public Service Commissioner, and the Permanent Heads and Chief Officers of the several Departments of State, and all persons in the Public Service of the Commonwealth to comply with the provisions of awards.


The Act further provides that each award must be tabled in Parliament for thirty days before it becomes effective, and Parliament is given power to disapprove any award within those thirty days. If it does not disapprove an award, the award comes into force.


I am of opinion that when an officer in Class A2, to whom the award applies, is awarded an increment, in pursuance of clause 2 of the award, the increment becomes part of his salary. The award is not of course an appropriation, and the increment cannot legally be paid until the money has been appropriated by law. But unless a sufficient appropriation is made to cover both original salary and increment, the salary of the officer cannot be paid in full.(1)

[Vol. 19, p. 143]

(1)The Opinion Book contains a parallel opinion [Vol. 19, p. 145] of the same date, in which the Solicitor-General, asked to consider the effect of an increment awarded in pursuance of a determination of the Public Service Arbitrator, repeated, to the Secretary to the Treasury, the views and conclusions stated above. See also Opinions Nos 1287, 1315.