Annex XXIX
EMPLOYMENT CONDITIONS OF THE INTERGOVERNMENTAL NACA
(Revision 1)

I. Employment During the Interim Period
January 1988 to December 1989

Employment during the current period ending 31 December 1989 requires consideration of special measures. Appointments made to the project during this period would as theretofore have to be made according to FAO rules and regulations; thus any appointments to graded professional posts would have to be made on the basis of salary levels and employment conditions applicable to this international professional category in the UN system.

It may be advisable, if use is to be made for reasons of economy of the revised salary levels and employment conditions contained in the Study of Employment Conditions of the Network of Aquaculture Centres in Asia (NACA/PGC-2/WP/08), to apply Special Service Agreements (SSA's). Perhaps action may in some instances be desirable to prepare someone for the period after 1989 when NACA will become an intergovernmental organization. Under this arrangement all the terms of employment applying to the appointment should be included in the SSA, making it a complete self-contained document (FAO Special Service Agreement form, Attachment 1). It needs to be kept in mind that this would not be a typical use of an SSA, which is normally as the term implies limited to payment for services and not benefits.

The arrangement suggested above requires that the amount of salary be combined with the monetary value of the employment benefits into a lump sum. This need not, of course, preclude revision of the SSA during the period of its validity if and when significant changes take place. Whether to recognize and to take into account any changes which may take place such as changes in family status, the birth of a child, or possible additional eligibility for an education grant, would be at the discretion of management, taking into account the subscriber's value of the contribution to the work of the Organization.

Arriving at an amount representative of total emoluments would involve the exercise of judgment in some instances in that the education grant and medical expense do not lend themselves to mere estimates. It may be that these allowances had best be administered in accordance with actual expenditures rather than being based on pre-estimates of expenditures. Furthermore, unless employment of rather extended duration is contemplated, benefits such as education grant, shipment of personal possessions, etc., should not be taken into account. A further constraint which cannot be ignored is that the budgeted amounts in the project document must be kept in mind. Thus, funding limitations will, of necessity, be governing to some extent.

In summary, the grade definitions contained in the report cited in the second paragraph should be used as a guide to determine the level of remuneration. If the employment foreseen is for an extended period, a period of a year or more for example, the value of benefits, insofar as budgetary coverage will permit, would be determined and added to the “salary” amount. The total would constitute the amount of payment. A period of service of a year or less would normally not need to take into account the value of employment benefits.

It is suggested that the form used by FAO for SSA's be applied to NACA. The guidance provided above is not intended to imply that international professional appointments can no longer be made and that these should be superseded by SSA's during the life of NACA as an FAO project. Reference to SSA's only for those reasons where for reasons of economy or other reasons it is considered advisable to use a less formal employment mechanism.

II. Guidelines for Dealing with NACA Employment Problems
in Preparing for the Future

Preparations for managing and administering NACA as a regional intergovermmental organization involve a number of preliminary actions some of which will be dealt with in this Note.

A. Privileges and Immunities

Reference was made in discussion during the meeting of the Second Provisional Governing Council to the basic issue of privileges and immunities. In the case of UN organizations these issues are covered generally by a Headquarters Agreement. The basic provisions are covered by a General Assembly Resolution applicable to all Member States. It happens occasionally that attempts are made by governments to impose income taxes or to impose duties on imports of project equipment and supplies, but such difficulties can usually be put aside by reference to liaison, protocol, and diplomatic channels. It is understood that at the moment there is reference to these issues in the project document and it is assumed that the Government will continue to extend import privileges for household goods, automobile, etc. and also to exempt staff from payment of income tax on salaries. It is most important that these privileges be extended since the salary scales would have to be revised upward drastically if income taxes were to be applied with a disastrous effect on the project budget.

B. NACA Staff Assigned to Countries Other Than Headquarters

It is further understood that NACA may possibly appoint staff to positions in countries other than Thailand. This was not foreseen at the time the study on employment conditions was made and it is not possible to deal with this issue in the short time available now. Further, NACA should not be required to undertake such a study for the small number of its posts. It is suggested that the UNDP Regional Projects Division of RBAP, UNDP, be contacted for assistance if there is a need for established salary scales and employment conditions in other countries. If such staff were to be nationals of the countries concerned, it might not be necessary to think in terms of establishing new mechanisms. The Government concerned and the UNDP office in the country could be asked for guidance.

C. Provident Fund

The provident fund or annuity scheme of the Mekong Committee is established with the Siam Commercial Bank. It will be recalled that a note on this subject was submitted to the Second Meeting of the Provisional Governing Council (NACA/PGC-2/WP/04 refers). The contact person is:

Mr. Chatchawan Panlap
Manager, Financial Administration
Chief of Deposits
Head Office, Siam Commercial Bank
Petchburi Road, Bangkok, Thailand

When the Mekong arrangements were made, the UN Pension Fund contributions and deductions were 14 per cent and 7 per cent, respectively. The UN General Assembly since then has changed the amounts to 14.10 per cent and 7.05 per cent but the Mekong Committee has not amended the rates.

D. Health and Accident Insurance

The Mekong Committee has negotiated a health and accident insurance policy for its headquarters and project staff with:

The Thai Health Insurance Company
968 U-Chukieng Foundation Building
Rama IV Road
Bangkok

The person to contact is Mr. Praneet Virakul, telephone no. 2357540.

When the Mekong Committee negotiated its policy, the Company required that, to be eligible, the Organization needed to have a minimum of approximately 20 to 35 participants. As stated in the report cited in the introduction, it is suggested that NACA seek collaboration with the Mekong at such time as the Mekong policy is subject to renegotiation. It might be possible to add the NACA staff to those of the Mekong, if NACA were prepared to accept fully the terms of the Mekong Policy. A copy of the Mekong Staff Health Insurance Plan is attached (Attachment II).

It will be recalled that a note on Health Insurance was prepared for the Second Meeting of the Provisional Governing Council of NACA (NACA/PGC-2/WP/08 Supplement B refers).

E. Living Allowance

During discussion of the Study of Employment Conditions it was pointed out that the flat sum of US$500 as a living allowance might not be adequate. It is likely that if numerous government staff are to be seconded there will be too great variety of situations with regard to family situations to be covered adequately by one single sum. It is suggested that some experience be gained and adjustments be made on that basis. The amount could serve as a minimum.

III. The Administration of Staff Entitlements and Benefits

A. Grade Levels

NACA Professional Staff should be appointed at the appropriate grade level, on the basis of the level of duties and responsibilities, provided the minimum qualifications/requirements are met. Job descriptions outlining the major duties and responsibilities including the requisite qualifications in terms of requisite academic and experience should be prepared. The characteristics of the three professional grade levels are shown below.

1. Grade Level 1, the lowest of the three professional levels, should be used for persons having completed academic training preferably to the advanced degree level, in the appropriate field of scientific or technical specialization or in training or informatics as required. Normally a minimum of two or three years relevant experience in an appropriate field of work should have been completed prior to recruitment. In terms of UN grades the duties and responsibilities are equivalent to the P1 and P2 levels.

2. Grade Level 2 should be used for staff performing fully independent scientific research or other work requiring general direction only in the kind of work to be performed. Normally four to eight or nine years of relevant experience at the time of recruitment would be required. Such individuals should be able to advise and train research staff of institutions in participating countries. In terms of UN grades the duties and responsibilities are equivalent to the P3 and P4 levels.

3. Grade 3 level should be used for high-level posts of a very senior level of responsibility for which ten to fifteen years of experience are required. For this as well as the lower levels the number of years of experience should not be accepted as the sole or even the primary criterion but rather as an indicative factor. The level and variety of experience, growth, progression, and development of professional expertise and competence of the individual, insofar as this can be demonstrated in terms of scientific publications or the evaluation of research results, should if anything receive more emphasis in the evaluation process than years of experience alone. Grade 3 level is the equivalent in terms of duties and responsibilities of the P5 grade level and extends into the D-1 grade level.

B. Probationary Period and Annual Step Increments

The first year of service of any staff member appointed to a post at NACA should be considered as a trial or probationary period. No extension of the period of service should be effected if there are strong reservations regarding the quality of the performance of the person concerned. However, should there be any doubt or uncertainty at the end of the initial twelve months' appointment regarding the quality of the performance, a short extention without the award of an incremental step may be considered in order that a through performance evaluation may be made. Given performance which is fully satisfactory one incremental step should be awarded after twelve months of such service. In the case of superior or outstanding performance demonstrated consistently during a twelve months' period of consecutive service two steps may be awarded.

C. Salary Scale

NACA salary scale (Monthly rate in US dollars)

Note: Incremental steps will be awarded to staff members after 12 months of satisfactory service; two steps may be awarded for superior or outstanding service.

The salary scale above is shown in the study and as reviewed and approved by the (Second) Provisional Governing Council.

When considering making an appointment to a post the level and duties of the post should first be reviewed to determine the appropriate grade. Since that is determined a step determination needs to be made. Normally a new appointment would be made at Step 1. However, if the applicant's net income is in excess of Step 1 a higher step should be considered to avoid having the person lose income. A higher step may also be awarded if the applicant has been occupying a very senior post.

A staff member should after a year of statisfactory service in grade be awarded an annual step increment. As stated in the report, a case of superior or outstanding performance demonstrated consistently over a twelve months' period of consecutive service two steps may be considered.

D. Dependancy Allowance

An allowance for each up to a maximum of three dependants (spouse and two children) who are residing with the staff member at the duty station may be authorized for staff members recruited for twelve months or longer in the amount of $275 per dependant per annum. Dependant children should be eligible up to and including the eighteenth year. The staff member should be required to show official birth records and to show evidence that the dependants are not employed.

E. Education Grant

An Education Grant is authorized for up to a miximum of two dependant children aged 6 to 18 who are in full-time attendance at a recognized educational institution. The amount of the grant is $2,500 per school year in the country of the duty station per child but not to exceed actual costs. Costs that may be covered include tuition, books, school supplies and boarding if applicable.

F. Installation Allowance

The Installation Allowance is intended to compensate in part for the “settling in” expenses a person faces upon recruitment. It is a one-time payment and is paid for the first month including travel time from the place of recruitment to the duty station at the UN DSA rate for the staff member. In addition, half of the DSA allowance may be authorized for up to maximum of 3 eligible dependants (spouse and 2 children) who accompany and will reside at the duty station.

G. Dislocation Allowance

The allowance is roughly equivalent to the UN assignment allowance and is intended to compensate financially in part for the disruption suffered by a person leaving the home country to work abroad. It may be paid annually for a period not to exceed five years.

H. Shipment of Household Goods and Personal Effects

Personnel to be employed for a year or more may be authorized the shipment of personal effects and house-hold goods by air from the place of recruitment to the duty station up to the maximum including the weight of packing of:

1. 500 kg for the staff member.
2. 250 kg for the first eligible dependant.
3. 100 kg for each additional dependant.

I. Other Administrative Matters

In the study of February 1987, the primary emphasis was on providing for the very basic allowances. Provision for some additional benefits needs to be considered, Among these are holidays to be observed, annual leave and home leave. It is suggested that holidays authorized by the UN be observed. Annual leave and home leave entitlements of the UN system would also seem to be appropriate.

There are numerous other matters of a management and administrative nature which have not been addressed. To avoid having an unduly elaborate administrative system for small number of staff it would be prudent to adopt a policy for reasons of continuity, consistency and simplicity to follow UN field project practices generally on matters where the Governing Council has not legislated. This would obviate the need for an elaborate administrative manual as well as simplify administrative practices.

IV. Assistance to the Working Group Established
by the Governing Council

It can be assumed that the Head Office will be required to provide extensive information on future plans and programmes for use by the Working Party designated by the Provisional Governing Council (PGC). This will include costing of posts and related matters.

For assistance in preparing budgetary forecasts it is suggested that a table patterned along the table attached be developed further and elaborated to provide a reasonable basis. The data recorded and additional information to be obtained and added would serve as a simplified pro forma or standard cost figure for each grade.

For salary costs it may be appropriate to consider Step 3 or 4 for each grade level, using the annual amount. Costs of transportation and shipment need to be obtained. If the project has a basis for estimating such costs on the basis of experience this might be adequate. Otherwise a fairly distant likely point of recruitment such as New Delhi or Sydney might be selected to develop cost figures which may be reasonably representative. It follows that estimates based on actual experience if sufficiently extensive would be preferable.

If cost data extending beyond one year need to be developed, it would require careful segregation of costs which occur only at the time of recruitment such as installation allowance and shipment costs which occur at the time of recruitment and separation.

It may be premature at this time to “cost” a provident fund but this should also be dealt with eventually.

Attachment 1

Proposed Table to be developed further Showing Pro Forma
or Standard Cost Figures*
(Cost in US Dollars)

* On assumption that NACA is able to negotiate rates now in effect for Mekong.