PROPOSED 'LOCAL NATIONALS PERSONNEL ACT'

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP62-00631R000200090035-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 30
• Document Creation Date: December 16, 2016
• Document Release Date: March 1, 2005
• Sequence Number: 35
• Publication Date: April 16, 1957
• Content Type: MF

J a y
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Lb April 1957
R: Legislative 0ounsel
1. This Office has reviewed the posed bill dated 25 January
1957 and the secttz crying analysis and, bas coaWared it with similar
legislation submitted last year.
contain any of the Specifics which will be necessary to make it
effective. It is contemplated that particulars suitable to various
agencies and areas will be put into effect by a res oulation. 110w-
ever, it should be noted that i n ting regulations will be
issued by the President, and Until we have l ledge of the nature
of such red &Gions, it is difficult to c t on the effect of
the bill on this Agency.
2. Like last year's bill this Me is very broad and does
Generally the bill is a good one
our support bearing in mind, of course, the
and administrative problems which may aris
Both Mr.
4. Section 15 of the proposed bill concerning Civil Service
retirement is not truly permissive in that it amends the Civil
Service Retirement Act so as to exclue* local eMloyees- Unless
a g e n c i e s we permitted to consider a non-citizen esployses as
in t2 ployment of all -citizen
in
his letter to Mr. , and the acceying analysis indicate
that it is intended to provide a bread permissive frwwwork which
can be adapted to meet the variety of conditions that may be en-
countered in different foreign areas. If we ern be assured that
the legislation and the regulations issued thereunder by the Presi
dent will be purely permissive,, we should have no serious objec-
tion to it. If such is the cssea, we will still be able to apply
normal a loy nt standards to certain non-citizen a loyees where
deemed desirable by the Agency. R never, because of this Agency's
peculiar needs for non-citizen employees, it would be ob, tion
able for us to have to camly with a Local National Personnel Act
ST
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other then locAl eu 1oy .. ell non citizen toyed abroad vill
be excluded -Xra ! Civil Service retie r This racy be un eei.r-
bei x in the es of crertods oqp.Uyo" this y.
ST
Office of Ouwml auna
S
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ER-9-2158
2 April 1957
Memorandum for: AD /00
OGC i
SSA/DDS
D /Personnel
Subject: Local Nationals Personnel Act
The Bureau of the Budget has requested the comments
of this Agency on the subject draft bill. As our reply is requested
by 1 May, would you please let me have any comments you wish
to make by 19 April so that a consolidated reply may be written.
/^,/ I ora au S. Pau?
Norman S. Paul
Legislative Counsel
Attachment --
Draft bill Local Nationals Personnel Act.
IG:LC:NSPaul /blc
2 - Signer
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Washington
March 18, 1957
Dear Mr. Brundage:
For several years there has been concern among agencies required
to conduct operations in foreign areas, over the lack of appropriate
authorities for effective management of the large numbers of non-U. S.
citizen personnel utilized in such areas. Most of the basic laws and
rules with which agencies have had to work were developed for application
to U. S. citizen personnel employed in the United States. Experience
has shown that in many respects they are not suitable or adaptable for
application to non-U. S. citizens employed in foreign countries. This
has been especially true for the Department of Defense which, during
the postwar period, has become a major employer of local personnel in many
overseas communities and its personnel policies and practices have be-
come the subject of considerable local and even national interest.
There appears to be considerable agreement that, under these cir-
cumstances, it would be to the advantage of the U. S. Government in its
relations with foreign countries and their citizens, to be able in many
respects to observe the customs and practices of other local employers,
including the local Government, in the employment of local personnel.
Because of the lack of enabling legislation or because of prohibitions
or restrictions in laws designed to apply to U. S. citizen employees,
there are many areas in which it is not possible to do this.
In consultation with representatives from various departments and
agencies of the Government, draft legislation has been prepared which
is designed to provide a broad framework of authorities to permit con-
formance, to the extent deemed desirable and practicable under particular
circumstances, with local employment customs and practices. The pro-
posed bill is necessarily broadly permissive, because of the variety
of circumstances it is intended to cover and because of the varying
needs of the agencies. It is contemplated that the Department of De-
fense, with its large and relatively temporary local work force, will
desire to develop programs which conform generally to local practice,
while State Department and possibly others will desire to continue
existing career systems for career alien employees, with certain modi-
fications. However, the proposed bill is made applicable to all agencies
so that authorities needed even by the Department of State will be made
available to them, and so that one basic statute will be the major
source of legislative authority in this field.
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The proposed bill does not alter basically the existing authority
of the heads of agencies to issue regulations on this subject. However,
it does provide that the President may establish overall policies. We
believe that coordination of policies established under this bill should
continue to be accomplished through existing channels, primarily on a
Country or Area basis as it is now, but that a firm requirement and the
establishment of any additional mechanics needed for such coordination
would be an appropriate matter for Presidential regulation. We do not
believe this proposed bill requires any additional provision in this
regard.
There are attached copies of the draft legislation and a proposed
sectional analysis. This is a complex matter and will require the most
careful consideration of all agencies concerned. However, it has been
the subject of correspondence and discussions with them over the past
several years. The current proposal represents a very careful consider-
ation of the attitudes and suggestions expressed, and an effort to meet
the needs of all agencies concerned, keeping in mind the basic needs
of the Government as a whole. It is hoped that a high priority can be
given to its consideration and that an early response may be received.
If at all possible, it would be desirable to submit this proposal in
ample time for consideration during this session of Congress.
It is believed that implementation of this proposed legislation
would result in economies, and would not in itself result in any addi-
tional cost to the Government. Comments on this subject are being soli-
cited from major agencies affected.
Sincerely,
Joseph E. Winslow
Honorable Percival Brundage
Director
Bureau of the Budget
Washington, D. C.
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January 25, 1957
To provide authorities for the procurement of personal services of non-
citizens in foreign areas and establishing non-United States
citizen personnel programs, and for other purposes
1 Be it enacted by the Senate and House of Representatives of the
2 United States of America in Congress assembled, That this Act may be
3 cited as the "Local Nationals Personnel Act."
4 SEC. 2. Objectives. The purpose of this Act is:
5 (a) To provide authorities needed in administering personnel
6 programs for employees of the United States who are not nationals of
7 the United States and who are employed by U. S. agencies operating in
8 foreign areas.
9 (b) To provide relief from certain laws intended primarily for
10 application to employees who are nationals of the United States, and
11 which are not appropriate for application in foreign areas to non-
12 U.S. citizens.
13 (c) To authorize the procurement of personal services by appro-
14 priate means other than appointment to U. S. rolls.
15 (d) To enable agencies to apply personnel practices consistent
16 with local laws and with customs and practices generally observed by
17 other employers in the foreign areas concerned.
18 SEC. 3. Definitions. In this Act:
19 (a) "Agency" means any department or agency of the United States
20 Government including corporations wholly-owned or controlled by the
21 United States.
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 EGIB
(b) "Foreign area" means any area outside the 48 States, and
outside the District of Columbia, Alaska, American Samoa, the Canal
5 of the United States and who is employed by an agency in a foreign
4 (c) "Local employee" means an employee who is not a national
3 Zone, Hawaii, Puerto Rico, Guam, Swa, Island, and the Virgin Island
7 (d) "Local law" means the foreign law applicable to employers
8 in a foreign area.
9 SEC. 4. Regulatory Authority. Subject to policies which may
10 be established by the President, the head of an agency may prescribe
11 regulations necessary to carry out this Act.
12 SEC. 5. Procurement of Personal Services. Any of the following
13 methods, as may be in the best interests of the United States, may
14 be used by agencies, in foreign areas, to procure the personal services
15 of persons who are not U. S. citizens.
16 (a) Direct hire of persons as employees of the United States.
17 (b) Indirect hire, including contracts with individuals or
18 contracting agencies or agreements with foreign governments or agen-
19 cies thereof whereby the services of persons are made available to an
20 agency on a reimbursable or other basis which may be negotiated.
21 (c) Any other basis authorized by law.
22 SEC. 6. Employee's Obligation.
23 (a) When practicable, a local employee should be required to
24 sign an agreement that he will conscientiously perform the duties
25 assigned to him, and that he will be faithful and loyal to the
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employing agency. Unless prohibited by local law or determined by
the head of an agency to be against the interests of the United
States, such an agreement shall contain anti-strike and subversive
activities affidavits similar to those required from an employee who
is a national of the United States.
(b) Section 1 of the Act of August 9, 1955 (69 stat. 624) is
amended by adding the following sentence at the end thereof:
"However, this Act does not apply to employees of the
United States covered by the Local Nationals Personnel
Act."
SEC. 7. Compensation and Employment Benefits.
(a) So far as practicable, compensation for local employees
shall be based upon locally prevailing pay rates and practices or
upon pay rates and practices prevailing in the area of recruitment.
Family and other allowances, bonuses, premium pay for holiday work,
overtime and night pay, advance payments for leave, health and medical
benefits, retirement, severance pay, and'other employment benefits,
may be provided if consistent with local law and/or practices gen-
erally followed by other employers in the particular area of em-
ployment or in the area of recruitment. These items may be made a
part of basic pay or they may be provided separately, or if these
items are administered by agencies other than the employer under
local labor or social benefits laws, an agency may participate in
such programs and may pay from avilable funds contributions normally
required from local employers under that program. Where a contribution
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1 is required from an employee, an agency may make payroll deductions,
2 and transmit those payments to the proper authority.
3 (b) So far as practicable, payments shall be made in the cur-
4 rency of the country where the services are principally performed.
5 (c) An agency may permit local employees to make allotments
6 of pay and, in those areas where the collection of income taxes is
7 normally accomplished by payroll deductions, may make similar deductions
8 from the pay of local employees and transmit collections to designated
9 authorities.
10 (d) Whenever local employees are required to perform services
11 for the United States at locations where other adequate facilities
12 are not available, an agency may provide lodging and meals, and local
13 transportation at prices commensurate with the local market values.
14 SEC. 8. Working Hours and Holidays. Notwithstanding any other
15 provision of law, an agency may establish the working hours and basic
16 workweek for local employees and may designate local or United States
17 legal holidays, or any combination of them, to be observed as holi-
18 days, and may compensate for work on such days at applicable holiday
19 pay rates.
20 SEC. 9. Training. Whenever it is determined to be in the
21 interests of the United States, an agency may provide language and
22 other training to local persons needed to fill U. S. Government
23 positions in foreign areas, including training in nongovernmental
24 facilities.
25 SEC. 10. Travel, Transportation and Storage
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1 (a) In addition to authority under other laws, an agency may
2 pay the travel, transportation and storage expenses of local em-
3 ployees as provided in this section.
4 (b) If a post of duty is located in an area where qualified
5 personnel must be recruited elsewhere, an agency may pay the travel
6 expenses of a new appointee or a transferee and the cost of trans-
7 porting his dependents and his household
8 goods and personal effects from the place of recruitment, residence
9 or transfer to the post of duty, if the employee agrees in writing
10 to remain in the service of the United States for at least twelve
11 months after arrival at that post unless separated earlier for
12 reasons beyond his control. Upon termination of the employee's IL L E GIB
13 services, an agency may pay the same expenses for the return from
14 the post of duty to the place of recruitment, residence or transfer.
15 (c) If a local employee, whose travel expenses to a post of
16 duty were paid under subsection (b), agrees in writing to serve an
17 additional tour at the post of duty, an agency may pay, for leave
18 purposes, round-trip travel expenses for that employee and the
19 cost of transporting his dependents from the post of duty to the
20 place of recruitment, residence or transfer. The head of an agency
21 may provide that the time involved in performing travel under this
22 subsection shall not be charged against the employee's regular
23 leave.
24 (d) If a local employee, whose travel expenses to a post of
25 duty were paid under subsection (b), or any dependentt_;.accompanying
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1 him, dies during that employee's tour at the post of duty, an
2 agency may pay the cost of preparing and transporting the remains
3 of that person to the place of recruitment, residence and transfer
4 and, in the case of the death of an employee, the cost of transport-
5 ing the dependents who accompanied him and his household goods and
6 personal effects to the place of recruitment, residence or transfer.
7 (e) If it is determined that the transportation of household
8 goods or personal effects is unfeasible, uneconomical or not in the
9 interests of the United States, an agency may pay the cost of storing
10 these goods and effects, including expenses incidental to that storage.
11 (f) Under this section, expenses for the transportation of
12 household goods and personal effects include expenses incurred in
13 packing and unpacking, crating, drayage and cartage, and temporary
14 storage.
15 (g) Reasonable weight limitations shall be imposed on trans-
16
portation and storage of household goods and personal effects, not
17 to exceed those provided for U. S. citizen employees in comparable
18 situations.
19 SEC. 11. Health and Medical Care.
20 (a) An agency may provide or pay for physical examinations
21 of local applicants and employees and their dependents, and may
22 provide inoculations and vaccinations.
23 (b) In the case of local employees transported at the expense
24 of the United States to posts of duty in remote areas or in other
25
foreign countries, or those stationed at posts where there are no
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1 adequate medical facilities other than those of the United States,
2 an agency may provide medical care, including transportation to and
3 from the nearest available adequate medical facility,for local
L. employees and their dependents to the extent that the employing
5 agency is authorized to provide that care for United States citizens
6 who are employees of the United States and their dependents, with
7 appropriate adjustments in charges in consideration of basic pay
8 received. This subsection does not apply to employees who are
9 eligible for and able to receive those benefits under a health and
10 medical program of any foreign government. An agency may participate
11 in such programs and may pay from available funds contributions
12 normally required from local employers under that program. Where a
13 contribution is required from an employee, an agency may make payroll
14 deductions, and transmit those payments to the proper authority.
15 SEC. 12. Incentive Awards. For purposes of participation in
16 the Government Employees' Incentive Awards program (68 Stat. 1113)
17 individuals whose services are obtained under the authority of
18 Sec. 5(b) of this Act may be considered as if they were civilian
19 employees of the Government.
20 SEC. 13. Leave.
21 (a) Notwithstanding any other provision of law, an agency
22 may establish a leave system for local employees which may conform
23 to the leave system generally observed under local law or custom
24 for similar classes of employees by other employers in the area,
25 including the foreign government, or the annual and sick leave laws
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1 applicable to employees who are U. S. citizens, or an appropriate
2 modification thereof, may be applied.
3 SEC. 1i+. Personnel Actions.
4 (a) Persar:nel actions taken under this Act shall not be subject
5 to the provisions of the Civil Service Act of 1883 as amended, or to
6 the Veterans Preference Act of 1944, as amended.
7 (b) Agencies shall establish personnel policies which will
8 reflect credit upon the U. S. as a progressive and just employer
9 by local standards and provide adequate protection against arbi-
10 trary or capricious supervisory actions.
11 (c) Local employees separated or suspended unfairly may be
12 compensated for all or part of the period of separation or sus-
13 pension as determined to be appropriate.
14 SEC. 15. Civil Service Retirement.
15 (a) Sec. 2 of the Civil Service Retirement Act is amended by
16 adding, immediately after subsection (g) the following new subsection:
17 "(h) This Act shall not apply to local employees of the
18 United States unless --
19 (1) There is no local retirement program in the
20 foreign area where the person is employed;
21 (2) The agency or department (including a corporation
22 wholly owned by the United States) employing that
23 arson does not participate in the local retire-
24 ment program; or
25 (3) The employee is not eligible for coverage under
26 that program.
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1. "As used in this subsection, the term 'local employee' means
2 an employee who is not a national of the United States and who is
3 employed by an agency in an area outside the 4+8 States, and outside
4 the District of Columbia, Alaska, American Samoa, Canal Zone, Hawaii,
5 Puerto Rico, Guam, Swan Island and the Virgin Islands."
6 (b) Section 9(a) of the Civil Service Retirement Act is amended
7 by substituting a colon for the period at the end thereof and adding:
8 "and provided further that the clauses (B) of this subsection shall
9 not apply to the service of any 'local employee' as defined in
10 section 2(h) of this Act, performed on or after the effective date
11 of this amendment."
12 SEC. 16. Effective Date of Act. The effective date of this
13 Act shall be the first day of the third month following the date
14 of its enactment.
15
16
17
18
19
24
25
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January 25, 1957
ANALYSIS OF THE PROPOSED LOCAL NATIONALS PERSONNEL ACT
Sec. 2 sets forth the objectives of this Act.
As a consequence of extensive aid and defense activities through-
out the world, the United States Government has become an employer of
large numbers of non-United States citizen personnel in foreign areas.
However, agencies have not been properly equipped with adequate personnel
authorities to cope with the varied personnel problems that have been
encountered in different countries. They have had to make ase of personnel
legislation which was enacted primarily in behalf of United States citizen
employees working in the United States and often found to be inadequate or
inappropriate for application in the employment of non-citizens in foreign
areas. In some instances, the inability to modify United States legisla-
tive requirements in recognition of local situations has caused friction
betweenthe United States agency and the host government. In other cases,
the inability to conform to local customs or practices has impaired morale
of local employees.
The type of operation in which an agency is engaged can have con-
siderable bearing on its problems in personnel administration. The diplo-
matic missions and related activities, such as the information offices,
agricultural attaches, and aid missions, which generally require compara-
tively small numbers of local personnel and which can offer almost a
permanent career-type employment to their local employees have less need
to conform to local practices than agencies such as the military establish-
ments which utilize large numbers of personnel with uncertain and some-
times relatively brief tenure. in the latter case, the individual and
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his government expect the employer, whether or not a United States
agency, to provide substantially the same conditions of employment and
continued protection under local employee benefit plans as are provided
by other local employers.
The proposed legislation is intended to provide a broad permissive
framework which can be adapted to meet the variety of conditions that
may be encountered in different foreign countries. The main objective
is to provide sufficient statutory flexibility to permit agencies to con-
form with local laws, customs, or practices followed by other major em-
ployers in a foreign area, to the extent that it may be determined to be
in the interests of the United States Government to do so, and admin-
istratively practicable.
Sec. 3 defines certain terms used in the Act.
Sec. 4 - This section authorizes the heads of agencies to prescribe
regulations necessary to carry out this legislation subject to applicable
policies which may be established by the President. For example, to
assure the desirable degree of uniformity in the implementation of this
Act, Presidential regulations could provide special mechanics for co-
ordination among various agencies operating in any overseas area, possibly
under the leadership of the U. S. Chief of Mission, when policy is being
established on certain subject matter areas. The President might also
desire to establish certain limits on the exercise of the broad per-
missive authorities contained in the Bill, based on operating experience
of the agencies. It is not practicable to establish such control in
the law because of the variety of situations covered and
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the need for flexibility in dealing with unusual or emergency situations
arising in the foreign areas concerned.
Nothing provided herein is intended to modify in any way the tradi-
tional role and responsibility of the principal diplomatic officer in
a foreign area. He would be primarily responsible for any necessary
negotiations with the host government based on this Act, subject, of
course, to full coordination with the United States agencies involved in
order to assure that their requirements are satisfied to the maximum
extent possible.
Sec. 5 - This section would contain the basic authority for procure-
ment of personal services of non-United States citizens in foreign areas
by any agency required to conduct operations in such areas. Existing
authority for employment of consular agents by the Secretary of State,
and any special authorities for employment of aliens in foreign areas by
contract or other similar basis are not affected.
Two methods for procurement of services are authorized, namely, by
direct hire and by indirect hire, which includes Executive agreements
and contracts. Under the direct hire method the individuals are employed
by the agency as direct employees of the United States Government, sub-
ject to management control and administration by the agency, with condi-
tions of employment and wages and salaries established by the agency.
Under the indirect hire method the agency would enter into an agreement
with the host government whereby some agency of that government would
employ the individuals required by the United States agency, and would
handle all administrative details in connection therewith under a
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mutually satisfactory reimbursement arrangement. While recruiting would
be done by the host government agency, selection of individuals to be
employed would be by the United States agency, and the employees would
be subject to management control by the United States agency.
The indirect hire method has been used largely by the Defense De-
partment. Under this arrangement conditions of employment and wages
and salaries, which are fully covered in the agreement entered into,
are based on but not necessarily fully conforming to local laws and
customs.
Authority to contract for personal services will enable the Govern-
ment to procure these services without making appointments directly
to United States rolls, under conditions negotiated with the contractor.
This arrangement is desirable in cases where the U. S. does not desire
to subject itself to conditions imposed on employers in the area, or
where it is not feasible to make direct appointments or enter into
special executive agreements.
Long established operations, such as the diplomatic missions, have
used the direct hire method of employment and over the years have de-
veloped a personnel system for their local employees which has generally
been found satisfactory both for the employing agency and the employees.
Small employers would probably find the direct hire method of employ-
ment preferable. However, in the case of the military establishments,
the attitude and desires of the host government would have considerable
bearing on the employment method used. The choice provided agencies in
this legislation would equip them to meet effectively any situation that
might be met.
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 Sec. 6 - This section provides that the local employee may be re-
quired to execute an agreement that he will conscientiously.perform
the duties assigned to him, and that he will be faithful and loyal to
the employing agency. It is further specified that if not contrary to
local law or to the policies and best interests of the United States
Government, anti-strike and non-subversive activities affidavits similar
to those required from United States citizen employees be included in
such agreement. It is considered inappropriate to make the two latter
items mandatory since political considerations will need to be taken into
account in each country. In some areas where employees have the right to
strike against their own government a requirement to sign an anti-strike
affidavit could be inadvisable, and in any case would have no legal value.
However, since such an affidavit might well serve as a moral deterrent
to strikes, it would be expected that the agencies would require it from
local employees unless other factors dictated otherwise. Affidavit re-
quirements should more appropriately be covered in regulations, based on
a careful evaluation of propriety for each country.
See. 7(a) - This section establishes authority for agencies to de-
velop compensation and benefit plans for local employees based on locally
prevailing practices. It is specifically provided that compensation
plans may provide for the payment of family and other allowances, bonuses,
holiday pay, overtime and night differential pay, advance payments for
leave, severance pay, and the like, in line with pay practices generally
followed by other employers, including the host government, in the area,
and that such items may be added to and made a part of basic pay or
provided separately.
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It has generally been the practice of United States agencies to de-
velop pay plans for their local employees based on locally prevailing
pay rates and practices, and frequently they have taken into considera-
tion some of the items listed above in establishing the base pay rates.
However, to employees accustomed to receiving a bonus at a certain time
of the year, a higher monthly take-home pay in lieu thereof is an unsatis-
factory substitute, since the bonus is usually paid at a time when there
is need for added cash, as in the case of Christmas bonuses. Bonuses
are common in foreign countries, as well as among United States private
employers, but they are specifically prohibited insofar as Government em-
ployees are concerned under 5 U.S.C. 70, 71.
Another common custom in foreign countries is to make advance salary
or wage payments to cover the period that an employee will be on vacation
leave. Since such payments are generally made only for the leave to which
the employee is entitled, it would involve no risk to the Government for
agencies to adopt this custom in any country where it is generally
practiced, provided that the amount of such payment is limited to the
amount of leave to which the employee is entitled at the time he goes
on leave.
Provision is made for developing compensation plans on the basis of
pay rates and practices prevailing either in the area of employment or
the area of recruitment. However, this does not preclude compensation
plans based upon any appropriate and justifiable basis necessary to pro-
vide adequate employment incentives. Authority to base compensation
plans on rates and practices prevailing in the area of recruitment will
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enable agencies to establish appropriate pay rates in those instances
where (1) places of employment are in remote areas which do not in fact
have representative locally prevailing rates and for which labor supplies
must be sought in more populous areas; or (2) when it is necessary to
go outside the area of employment for certain specific skills and train-
ing which are not available locally.
The Bill also authorizes participation in governmental or other pro-
grams which provide other employment benefits, by making necessary em-
ployee contributions. In many areas there are social benefits plans in
which all employees participate. These include retirement or social
security programs, health and medical programs, maternity benefits and
others such as fringe benefits programs referred to above. This section
provides that the employing agency can participate in these benefits pro-
grams in accordance with local practice, whether by direct payment to
the individual, by contribution into a local. governmental system, by
payroll deductions or any other appropriate arrangement.
(b) Payments to local employees would, except in special circum-
stances, be made in the currency of the country where the services are
principally performed. Exceptions might be necessary in those cases
where individuals are recruited from outside the country of employment,
or where they are serving at posts which were newly built by the United
States Government and at which the currency of the country is not gener-
ally used as a medium of exchange.
(c) Agencies often find it advantageous to employ individuals who
are not citizens or residents of the country in which the operation is
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located, frequently for the purpose of obtaining people with special
skills or particular qualifications, such as a language proficiency.
Transfers of local employees may be arranged for similar reasons. How-
ever, because of foreign currency control regulations and the difficulties
in transferring funds back to their countries of residence, such indi-
viduals may be reluctant to accept such employment. This section provides
authority for agencies to make allotments of pay for such individuals,
similar to the authority available for United States citizen employees
serving overseas to make allotments back to the United States. It would
be expected that an employee would generally be permitted only one such
allotment, either to a member of his family or to a banking institution
in his country of residence, payable in the currency of such country.
The authority would probably be exercised only when the United States
Government has a facility in the particular country, through which such
allotment payments could be effected, and in any case no such allotments
would be permitted if embarrassment to the United States Government might
result due to currency control regulations of the countries of origin
or destination for such allotments.
(d) This section authorizes agencies to provide lodging and meals
at prices commensurate with the local market values in the event that
employees are required to work at locations where other appropriate
facilities are not available.
Sec. 8 - Observance of holidays by United States agencies in
foreign areas presents a problem. One of the reasons is that United
States statutes designate eight days to be observed as legal holidays,
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and normally holiday pay must be paid to United States citizen employees
required to work on such dates. Each foreign country has its own holidays,
varying in number by country, and seldom coinciding with the dates of
United States holidays. Local employees naturally prefer to observe
their own holidays, and expect pay at holiday rates if required to work
on such days. Since as many as 15 holidays may be observed in some
countries, it would involve considerable loss of productive time to ob-
serve all important local holidays and the eight United States legal
holidays.
The legislation proposed would permit the agencies to establish a
holiday list for local employees, which could consist either of local
holidays or United States legal holidays or an appropriate combination
of the two; i.e., substituting certain United States legal holidays for
certain local holidays. It would be expected that the total of such
holidays would not exceed the total number of holidays observed generally
by other local employers, including the host government. Work required
to be performed on any of the dates included on the holiday list could
be compensated at holiday pay rates if provided for in the compensation
plan.
Sec. 9 -.This section would permit agencies to train local persons
to fill various positions either directly or through private or com-
mercial facilities. In certain areas the local labor supply may not
provide sufficient numbers of individuals with the requisite training
and skills to fill all competing employment needs, yet there are avail-
able individuals with the requisite interest and aptitudes who could be
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trained for effective service at considerably less cost than would be in-
volved in recruiting United States citizens for such positions. To
protect the Government's investment in such training, agencies could re-
quire the individual to sign an agreement to remain in the service of
the agency which provides the training for some specified minimum period.
Sec. 10(a) - This section calls attention to the fact that author-
ities already available for payment of travel, transportation and storage
expenses are not affected, but that certain additional authorities are
provided in this legislation.
(b) This subsection authorizes payment of travel expenses for the
employee, andtransportation costs for dependents and household goods and
personal effects, in connection with reporting to first duty stations.
The justification for such authority is that in several countries United
States installations are located in remote or isolated areas for which
much of the necessary personnel must be recruited from other more popu-
lous centers either in the same or other countries. In other areas
unskilled types of employees may be available but trained, skilled persons
must be recruited elsewhere. Under such circumstances the qualified in-
dividuals may be willing to accept employment away from their places of
residence or the area of recruitment, but only if they are not required
to incur the expense of reporting to the duty station. The legislation
stipulates that such expenditures may be incurred by agencies only when
the employees agree in writing to remain in .the Government's service for
not less than 12 months after arrival at the post, unless separated
earlier for reasons beyond their control; and that upon termination of
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their services, they and their dependents and effects may be returned
to a place specified in such agreement. Earlier termination might occur
either for convenience of the Government or for humanitarian reasons.
It would be assumed that for administrative convenience agencies would
adopt a uniform tour of duty at such posts both for local and United
States citizen employees, which under present legislation could range
from one to three years.
(c) This subsection authorizes transportation for leave purposes
for an employee and his dependents, in those cases where the employee
has been transported to the duty post at Government expense. This would
apply in the case of transportation to posts outside the country of resi-
dence, or to overseas areas, or to remote or isolated areas whether
within the country of residence or not. The legislation stipulates that
transportation for leave purposes may be provided at the conclusion of
the period of service agreed to in writing at the time of transportation
to such post (see subsection (a) above), provided that the employee agrees
in writing to accept another tour of duty at the same or another post.
It is further provided that the time involved in performing travelfor
leave purposes, by approved means, shall not be charged to the employee's
regular leave. This is similar to authority which was provided for United
States citizen employees under P.L. 737 - 83rd Congress.
(d) This section provides travel and transportation benefits for em-
ployees and their dependents in the event of death.
(e) This subsection authorizes agencies to pay for storing the
household goods and personal effects of employees who are sent to posts
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where they cannot use or to which they are not permitted to take such
effects as the result of an administrative determination that it would be
uneconomical or contrary to the interests of the Government to transport
them.
(f) This subsection defines the various expenses that are properly
chargeable as transportation costs under authorities provided herein.
(g) This subsection provides that reasonable weight limitations shall
be established for transportation and storage of household goods and per-
sonal effects, not to exceed those provided for U. S. citizens in compar-
able circumstances. This gives flexible authority to meet varying needs
but imposes an adequate maximum limit.
Sec. 11(a) - This subsection extends authority to pay for physical
examinations and inoculations and vaccinations to applicants and depen-
dents, as well as employees. It is expected that such authority would be
used only when it is intended to transport an employee to another post at
Government expense.
(b) This subsection provides authority, in those instances where
local employees are transported at Government expense to posts in remote
areas or to other foreign countries, or those stationed at posts where
adequate medical facilities other than those of the Government do not
exist, to provide medical care, including transportation to and from the
nearest available adequate medical facility, for both the employee and
his dependents, to the same extent that the employing agency is authorized
to provide such care for United States citizen employees and their depen-
dents. It is further provided that in the event any costs are chargeable
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to United States citizen employees for any care provided, appropriate ad-
justments may be made in the charges to local employees in relation to
basic pay received. No such care would be provided under this authority
to any employee who is eligible for and able to receive similar benefits
under a health and medical program of any foreign government (either his
on or the government of the country in which he is working).
Sec. 12. This section is intended to permit participation in the
Government Employees' Incentives Program by individuals whose services
are engaged under the indirect hire authority.
Sec. 13. This section provides authority for agencies to adopt the
leave system generally followed by other employers in an area for similar
classes of employees or to apply the leave provisions applicable to United
States citizen employees, or any appropriate modifications thereof. Pro-
priety and administrative practicability would influence the adoption of
a leave system for local employees, and the authority provided herein is
intended to be sufficiently flexible to allow the agencies considerable
discretion in establishing a leave system appropriate for the particular
area.
Sec. 11(a) This subsection removes local employees from coverage
under the Civil Service Act as amended and the Veterans Preference Act.
Open competitive appointment, or other personnel actions under Civil
Service rules are not practicable for local employees, and Veterans Prefer-
ence is practicable only to the extent that it can be given on a local
basis. It is contemplated that regulations will continue to provide
preference in all personnel actions for veterans, but this will be done
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administratively and existing appellate and other procedures will not
apply.
(b) This subsection is a declaration of legislative intent that
authorities provided in this Act shall be administered fairly and in
the
a manner that will reflect goodness and justice of the United States as
an employer. No other firm standards are provided because of the diffi-
culty in establishing norms with universal applicability. Even such
practices as non-discrimination and other established fair labor stand-
ards in U. S. Government employment cannot be observed in certain areas
because of local laws, rules or prejudices, the violation of which would
be considered a direct affront to the host government.
(c) This subsection is patterned after authority which applies
to United States citizen employees who are restored to duty after a
period of suspension or separation which has been determined to have been
unjustified or unwarranted. It is considered desirable to have similar
authority for local employees so that hardships occasioned by unwarranted
suspension or separation may be offset by restoration of all or part of
the pay lost. It would be expected that local custom or law would be
taken into account in determining appropriate action in a case, and that
the authority contained herein would be utilized on.y to the extent that
it is determined to be desirable from the standpoint of employee morale
and public relations.
Sec. 15(a) - This subsection would amend the Civil Service Retire-
Act to exclude therefrom local employees generally. A local employee is
defined as an employee, who is not a national of the United States,
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serving in any area outside the 48 States and outside the District of
Columbia, Alaska, American Samoa, the Canal Zone, Hawaii, Puerto Rico,
Guam, Swan Island and the Virgin Islands. Exclusion from Civil Service
Retirement coverage would not operate if (1) there is no local retire-
ment program in the area where the person is employed, (2) a local pro-
gram does exist but the employing agency chooses not to participate, or
(3) participation is effected but the employee is not eligible to be
covered by the local program.
This means that the local employee appointed after the proposal's
effective date with coverage under the local program will not be subject
to the Civil Service Retirement Act. The employee already under the
Retirement Act would lose such status when he goes under the local program
after enactment of the bill. This latter transaction would be considered
a transfer to a position not within the purview of the Retirement Act
entitling the local employee to:
1. a refund, if he has less than 5 years' civilian service;
2. if he has at least 5 years' civilian service, (a) an
annuity beginning at age 62 (or immediately if then be-
yond 62) or (b) a refund provided the transfer occurs
and refund claim is filed at least 31 days before the
deferred annuity could begin.
(b) This subsection would also amend the Retirement Act by elimin-
ating therefrom, for local employee service performed after the bill's
effective date, the l%-plus-$25 method of annuity computation. In other
words, the local employee thereafter retiring under the Civil Service
Retirement Act would have his annuity computed as follows:
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1. For service prior to said effective date, the higher of (a)
1% of average salary, plus $25, multiplied by years and
months or (b) 1 of average salary multiplied by service
up to 5 years, 1-3/114% between 5 and 10 years, and 2% for
service over 10 years, plus
2. For service thereafter, annuity computed under plan (b)
only.
Due to the relatively small salaries received by these local employ-
ees, the 1%o-plus-$25 plan, which now operates generally for these persons,
gives them a much higher annuity -- out of all proportion to the precent-
age of salary -- than is allowed upon retirement to citizen employees
here and abroad. The proposal would not take away any annuity already
earned under existing law, but would generally provide a smaller benefit
by reason of future service.
Sec. 16 - This section provides a future effective date of this Act
to permit adequate time for issuance of necessary regulations.
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