Papua New Guinea has a specialized court, the Industrial Court, which primarily handles labor and employment disputes. It derives its power from the Industrial Relations Act. Arbitration is also a recognized pathway for resolving employment disputes under the Industrial Relations Act. Parties may agree to arbitration or the Minister for Labour and Industrial Relations may refer disputes for arbitration.

Industrial Court

The Industrial Court handles disputes concerning interpretation and enforcement of industrial awards (agreements), "industrial matters" (broadly defined to include wages, working conditions, rights/privileges of workers or employers), alleged breaches of the Industrial Relations Act, and appeals from decisions of lower industrial tribunals. Cases are initiated by filing a complaint. Proceedings are intended to be less formal than traditional courts. Evidence is presented, and the Court has the power to summon witnesses and documents. Decisions are binding and may be appealed to the National Court on legal matters.

Arbitration Panels

The jurisdiction of arbitration panels is typically defined in the arbitration agreement or referral by the Minister. However, arbitrators generally address similar cases as the Industrial Court. The processes are determined by the arbitration agreement or directions by the Minister. Arbitration is generally more flexible than court proceedings, offering an alternative for quick, cost-effective resolutions. Evidence procedures vary, although fundamental principles of natural justice apply. Awards are binding, with avenues for appeal or enforcement through the Industrial Court.

Typical Cases Handled

Both the Industrial Court and arbitration panels handle disputes over wages and working conditions, unfair dismissal and termination claims, interpretation of employment contracts and awards, discrimination and harassment complaints, and collective bargaining and industrial actions (strikes, lockouts).

Relevant Legal Sources

The primary statute governing labor issues in Papua New Guinea is the Industrial Relations Act. The Employment Act regulates key aspects of employment relationships. Specific rules and regulations from the Industrial Court or the Department of Labor and Industrial Relations also apply. Decisions from the Industrial Court and National Court shape the interpretation and application of employment law.

Compliance audits and inspections are systematic reviews of an organization's activities to ensure adherence to laws and regulations, industry standards, and internal policies.

Importance of Compliance Audits and Inspections

In Papua New Guinea, these audits and inspections are crucial for risk mitigation, process improvement, and stakeholder confidence. They help businesses identify and address potential areas of non-compliance, reducing the risk of legal action, fines, and reputational damage. They can also spotlight weaknesses in operational processes, allowing for efficiency gains. Furthermore, they foster trust with investors, customers, and regulatory bodies by demonstrating a commitment to ethical and responsible business practices.

Entities Conducting Compliance Audits and Inspections

Various entities can conduct compliance audits and inspections in Papua New Guinea, including government agencies, internal auditors, and external auditors. Regulatory bodies within specific sectors have the authority to conduct audits and inspections. Examples include the Mineral Resources Authority (MRA), which is responsible for health and safety audits within the mining industry, and the Internal Revenue Commission (IRC), which conducts tax audits. Independent statutory authorities, such as the Auditor-General's Office, are tasked with ensuring accountability in public institutions. Many organizations also have in-house audit teams to evaluate their compliance posture regularly, while third-party auditing firms offer specialized expertise and an independent perspective on various compliance aspects.

Frequency of Compliance Audits and Inspections

The frequency of these audits and inspections can vary. Regulatory agencies may have specific schedules for audits and inspections, which can vary depending on factors like the size of the company, and the risk profile of its operations. Some industries have self-regulatory bodies or associations that set recommended frequencies for audits to maintain certain certifications or memberships. Organizations may also set schedules for internal compliance reviews.

Consequences of Non-Compliance

Failure to comply with regulations and standards in Papua New Guinea can lead to fines and penalties, legal action, license suspension or revocation, and reputational damage. Regulatory bodies possess the authority to impose financial penalties for breaches. Serious or continuous non-compliance can result in lawsuits or criminal charges. Businesses may lose necessary operating permits or licenses. Negative publicity from non-compliance can harm an organization's reputation and erode stakeholder trust.

Whistleblowing and reporting violations are critical aspects of maintaining transparency and accountability in organizations. In Papua New Guinea, there are several mechanisms in place to facilitate this process.

Mechanisms for Reporting Violations

Many organizations in Papua New Guinea have internal channels for reporting misconduct. These may include reporting to a supervisor, a designated compliance officer, or using a company hotline.

Whistleblowers can also report violations of the law to law enforcement agencies, such as The Royal Papua New Guinea Constabulary (RPNGC), The National Fraud and Anti-Corruption Directorate, and The Ombudsman Commission of Papua New Guinea.

The Whistleblower Act 2020 provides a specific reporting mechanism for whistleblowers with concerns on a wide range of wrongdoing. Reports can be made to an Authorized Officer, who is legally bound to appropriately investigate the disclosures.

Protections for Whistleblowers

The Whistleblower Act 2020 enshrines critical protections for whistleblowers. These include protection from detrimental acts, confidentiality, and compensation and remedies. Whistleblowers who make protected disclosures are shielded from retaliation, including termination, demotion, harassment, or discrimination. The identity of the whistleblower and details of their disclosure are generally kept confidential, unless necessary for specific legal reasons or with the whistleblower's consent. Whistleblowers who suffer detrimental acts due to their disclosure may be entitled to compensation and other remedies, such as reinstatement or restoration of lost benefits.

The Ombudsman Commission Act and employment laws in Papua New Guinea also provide some level of protection to whistleblowers facing retaliation.

Practical Considerations for Whistleblowers

Whistleblowers should document their concerns, gather relevant evidence to back up their claims, and consider seeking advice from a lawyer or a trusted organization that deals with whistleblower protection before making a disclosure. They should also be aware of the risks associated with whistleblowing, even with legal protections, and consider the potential consequences before making a disclosure. Finally, whistleblowers should think carefully about the most appropriate reporting mechanism for their situation.

Papua New Guinea (PNG) is a developing country with a complex labor landscape. Understanding the nation's compliance with international labor standards offers insights into workers' rights and the broader socioeconomic climate.

Conventions and Treaties

PNG has ratified the eight fundamental ILO conventions that cover the following:

• Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87): PNG upholds trade union rights, though there are restrictions within certain sectors.
• Right to Organise and Collective Bargaining Convention, 1949 (No. 98): Collective bargaining rights exist but may be limited by industry agreements and ministerial intervention.
• Forced Labour Convention, 1930 (No. 29) and Abolition of Forced Labour Convention, 1957 (No. 105): Forced labor is prohibited, though enforcement can be inconsistent, with reports of forced labor in remote areas.
• Minimum Age Convention, 1973 (No. 138) and Worst Forms of Child Labour Convention, 1999 (No. 182): Laws address child labor, but widespread child labor remains a concern in agriculture and informal sectors.
• Equal Remuneration Convention, 1951 (No. 100) and Discrimination (Employment and Occupation) Convention, 1958 (No. 111): Discrimination based on gender, race, and other factors is prohibited; however, women and marginalized groups still face wage gaps and employment barriers.

Domestic Labor Law

PNG's national legislation forms the backbone of its labor regulations. The key legal instruments include:

• The Industrial Relations Act (2010): Regulates employment contracts, wages, working conditions, dispute resolution, and trade union activities.
• The Employment Act (1978): Provides for basic employment terms, leave entitlements, termination procedures, and protection of vulnerable workers.

Harmonizing International and Domestic Frameworks

PNG faces challenges in ensuring its domestic laws fully reflect obligations under ratified ILO conventions. Specific points of tension include:

• Trade union restrictions: Certain sectors (e.g., essential services) have limits on union formation and activities.
• Enforcement and oversight: Limited resources and capacity hinder effective labor inspections, especially in remote areas.
• Informal Economy: A large informal sector operates outside formal regulations, making workers vulnerable to exploitation.

Continual Improvement

To improve workers' rights, PNG has taken steps including:

• Recent Ratifications: In 2023, PNG ratified ILO conventions on labor inspection (No. 81), tripartite consultation (No. 144), and violence and harassment (No. 190).
• ILO Support and Collaboration: PNG works closely with the ILO to strengthen enforcement and promote compliance.
• Awareness-raising: Engaging stakeholders (employers, workers, civil society) in understanding international labor standards is essential for fostering compliance at a grassroots level.