The Public Sector Executive Compensation Act

The Public Sector Executive Compensation Act, C.C.S.M. c. P264 (Assented to November 6, 2020) bilingual version (HTML) Table of Contents Section INTRODUCTORY PROVISIONS 1 Definitions 2 Application COMPENSATION FRAMEWORK FOR EXECUTIVES 3 Compensation framework 4 Effective date 5 Effect of framework 6 Overpayments 7 Exemptions ADMINISTRATION AND COMPLIANCE 8 Compensation information 9 Compliance with regulations and directives 10 Deemed agreement terms GENERAL 11 Incremental increases 12 No deemed employment relationship 13 No constructive dismissal or breach of contract 14 No cause of action, compensation or damages REGULATIONS 15 Regulations C.C.S.M. REFERENCE AND COMING INTO FORCE 16 C.C.S.M. reference 17 Coming into force HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows: INTRODUCTORY PROVISIONS Definitions 1 The following definitions apply in this Act. "compensation" means any consideration or remuneration, regardless of its nature or form, including, without limitation, elements such as salary, retainers, benefits, bonuses, allowances, travelling and living expenses, honorariums and severance pay, paid or payable or provided, directly or indirectly, to or for the benefit of a person who performs duties and functions that entitle the person to be paid. (« rémunération ») "compensation framework" means a compensation framework established under section 3. (« lignes directrices en matière de rémunération ») "executive" means an individual who holds any of the following offices or positions with a public sector employer: (a) the chief executive officer or similar position; (b) an office or position or class of office or position that is prescribed, but not including an office or position held by an employee who is represented by a bargaining agent. (« cadre ») "minister" means the minister appointed by the Lieutenant Governor in Council to administer this Act. (« ministre ») "prescribed" means prescribed by regulation. (Version anglaise seulement) "public sector employer" means (a) the government; (b) a corporation as defined in The Crown Corporations Governance and Accountability Act ; (c) the following health organizations: (i) a health authority as defined in The Health System Governance and Accountability Act , (ii) a prescribed health sector employer; (d) The University of Manitoba, The University of Winnipeg, Brandon University, Université de Saint-Boniface, University College of the North, Red River College Polytechnic, Assiniboine Community College, and Manitoba Institute of Trades and Technology; (e) a school district and a school division as defined in The Public Schools Act ; (f) any other reporting organization as defined in The Financial Administration Act ; and (g) any other prescribed employer in the public sector, or member of a prescribed class of such employers. (« employeur du secteur public ») "regulation" means a regulation made under this Act. (« règlement ») S.M. 2022, c. 24, s. 39 ; S.M. 2023, c. 10, s. 42 . Application 2(1) Subject to subsection (2), this Act applies despite any other enactment that sets, approves or otherwise fixes compensation for a public sector employer or an executive and, to the extent of any conflict or inconsistency with the other enactment, this Act prevails. 2(2) [Repealed] S.M. 2022, c. 9, s. 2 . S.M. 2022, c. 9, s. 2 . COMPENSATION FRAMEWORK FOR EXECUTIVES Compensation framework 3(1) The Lieutenant Governor in Council may, by regulation, establish a compensation framework for executives. Purpose of framework 3(2) A compensation framework is to govern the compensation that may be provided by a public sector employer to an executive or class of executives and, without limitation, may limit the compensation or elements of that compensation that may be provided to an executive or class of executives. Effective date 4 A compensation framework takes effect on the prescribed date. Effect of framework 5(1) When a compensation framework is in effect, the following prohibitions and obligations apply to a public sector employer and each of its executives: 1. The public sector employer must comply with the terms of the compensation framework. 2. The public sector employer must not provide compensation to an executive that is greater than the amount authorized in, or that is otherwise inconsistent with, the framework. 3. The public sector employer must not do anything to circumvent a limit set out in a compensation framework or restructure its organization so that the framework does not apply to its executives. 4. An executive is not entitled to receive compensation that is greater than the amount authorized in, or that is otherwise inconsistent with, the framework. 5. Any provision in an agreement between a public sector employer and an executive that authorizes or requires an amount to be paid that is greater than the amount authorized under, or that is otherwise inconsistent with, the compensation framework is void and unenforceable to the extent that it is not in accordance with the framework. 6. If an executive accepts compensation greater than the amount authorized in or that is otherwise inconsistent with the framework, the excess amount is deemed to be a debt due to their employer. The public sector employer must, within the year after the date on which the executive accepted it, recover the excess by any remedy or procedure available to the employer by law to enforce the payment of a debt, including deducting that overpayment from any compensation payable to the executive. 7. The compensation framework applies to an executive even if (a) the executive is appointed to a new office or position with the public sector employer; or (b) the executive's contract or agreement is renewed after the framework takes effect. Effect on existing executives 5(2) For an executive who is employed immediately before a compensation framework takes effect and continues to be employed in the same position or office, whether under the same or a renewed contract or agreement, (a) the compensation framework does not apply until two years after it takes effect; and (b) any increase in an element of compensation contracted for or agreed to that has not been implemented before two years after the framework takes effect is void and unenforceable to the extent that it is inconsistent with the framework. Overpayments may reduce provincial funding 6 The minister may reduce the amount provided by the government under an agreement or other funding arrangement to a public sector employer by the amount of any excess compensation received by an executive. Exemptions may be authorized 7(1) The minister may, if authorized by regulation to do so, exempt a public sector employer or an executive from one or more terms in a compensation framework and set conditions for the exemption. Written exemption 7(2) The exemption must be made in writing. Exemptions to be made public 7(3) The minister must make the exemption available to the public by posting it on a government website and by any other means the minister considers appropriate. Exemption not a regulation 7(4) An exemption is not a regulation within the meaning of The Statutes and Regulations Act . ADMINISTRATION AND COMPLIANCE Compensation information 8(1) The minister may issue a directive to a public sector employer requiring the employer to provide information, including personal information as defined in The Freedom of Information and Protection of Privacy Act , related to compensation that the minister considers appropriate for ensuring compliance with this Act. Types of information 8(2) Without limitation, a directive under subsection (1) may include requirements to provide the public sector employer's information about (a) contracts or agreements between the employer and its executives relating to compensation; (b) plans respecting compensation for executives and estimates of costs with respect to those plans, including proposed or negotiated changes to such plans; and (c) policies, guidelines and studies related to compensation for its executives and other employees. Information must be provided 8(3) The public sector employer must provide the information in a timely manner. Information confidential 8(4) Subject to subsections (5) and (6) and the regulations, the minister and any other person in receipt of the information must keep the information provided by the public sector employer confidential. Use of information by minister 8(5) The minister may use and disclose information, including personal information, provided under this section as the minister considers appropriate for the administration of this Act. Public Sector Compensation Disclosure Act 8(6) Nothing in this section limits the disclosure of information provided under The Public Sector Compensation Disclosure Act . Compliance with regulations and directives 9 Every public sector employer to which a regulation or directive issued under this Act applies must comply with it. Deemed agreement terms 10 Every prohibition or obligation concerning a public sector employer under this Act is deemed to be a prohibition or obligation that the employer is required to comply with under the terms of every agreement or other funding arrangement between the government and the employer. GENERAL Incremental increases 11 Nothing in this Act affects an executive's entitlement to a promotion, reclassification or salary increment within an established compensation framework in accordance with the terms of an employment contract or agreement. No deemed employment relationship 12 Nothing in this Act makes a person an employee of the government who is not otherwise an employee of the government. No constructive dismissal or breach of contract 13 Neither the enactment or application of this Act nor any changes to the compensation that is payable to an executive as a result of this Act is considered to be a constructive dismissal or breach of contract. No cause of action, compensation or damages 14 No cause of action or proceeding arises as a direct or indirect result of the enactment or application of this Act, and no compensation or damages are owing or payable to any person in connection with or as a result of the enactment or application of this Act. REGULATIONS Regulations 15(1) The Lieutenant Governor in Council may make regulations (a) prescribing an office or position, or a class of offices or positions, for the purpose of clause (b) of the definition "executive" in section 1; (b) in respect of the definition "public sector employer" in section 1, prescribing (i) a health sector employer, or class of health sector employers, for the purpose of subclause (c)⁠(iv), and (ii) an employer in the public sector, or class of such employers, for the purpose of clause (g); (c) prescribing the date on which a compensation framework takes effect; (d) authorizing the minister to exempt a public sector employer or an executive or a class of public service employers or executives from a compensation framework and prescribing conditions in relation to the exercise of that authority; (e) respecting the collection, use and disclosure of information, including personal information within the meaning of The Freedom of Information and Protection of Privacy Act ; (f) defining any word or expression used but not defined in this Act; (g) respecting any matter the Lieutenant Governor in Council considers necessary or advisable to carry out the purpose of this Act. General or specific 15(2) A regulation may be general or specific in its application. C.C.S.M. REFERENCE AND COMING INTO FORCE C.C.S.M. reference 16 This Act may be referred to as chapter P264 of the Continuing Consolidation of the Statutes of Manitoba . Coming into force 17 This Act comes into force on the day it receives royal assent.