Embracing a More Comprehensive Definition of Persons with Management

Starting July 1, 2023, an expanded definition of Persons with Management or Control (PMC) will be adopted in the National Law and the Children’s Services Act 1996 (CS Act). This change allows Regulatory Authorities to more effectively assess the suitability of all relevant individuals.

At present, a PMC denotes an individual in an executive or management position within an approved provider entity, responsible for overseeing the delivery of the provider’s service(s). This typically includes officers of a body corporate, members of the executive committee of an incorporated association, and partners of a partnership.

From July 1, however, this definition will broaden, encompassing those who wield significant authority, responsibility, or influence over:

  • The planning, direction, or control of activities.
  • The delivery of the service.

These individuals may or may not be members of the governing body of the approved provider entity. In fact, a PMC may even be an outsider to the approved provider entity, like someone employed by a third-party management company or volunteer, or a person with no formal or contractual role, but with significant influence over the planning, direction, or control of activities or the delivery of the service.

A PMC carries the same legal responsibility as an approved provider for the safety, health, and wellbeing of children under their service. Every PMC must be deemed a ‘fit and proper’ person, capable and of good character, to be involved with children’s education and care. This assessment is carried out by the Regulatory Authority.

It’s worth noting that not everyone in a managerial position is considered a PMC. Operational management roles, such as nominated supervisors, persons in day-to-day charge, or centre managers, do not fall under the PMC definition just by virtue of their roles. These individuals would only be classified as PMCs if they are involved in executive or financial decision-making of the approved provider entity, or have authority or significant influence over planning, direction, or control of activities, or delivery of the service.

Action Plan for Providers

Existing providers need to take several steps to prepare for these changes. They should:

1. Verify if the current list of PMCs held by the Regulatory Authority is accurate. If their details are up-to-date before July 1, 2023, no action is needed, as they will continue to be a PMC.
2. Determine whether additional persons within their organisations fit the new, broader PMC definition effective from July 1, 2023.
3. Inform the Regulatory Authority of any additional PMCs by 15 July 2023.

For new approved providers, PMCs will be evaluated as part of the provider approval application process. It’s important to remember that all approved providers must alert the Regulatory Authority if a new PMC is appointed or removed, or if an existing PMC is no longer fit and proper. For additional information on these changes, review ACECQA’s information sheet: Identifying persons with management or control of a service from 1 July 2023 – Existing providers. For any inquiries, reach out to the Enquiry line on 1300 307 415 between 9.00am and 5.00pm Monday to Friday, or email licensed.childrens.services@education.vic.gov.au.

Failure to adhere to these obligations may lead to legal repercussions under the National Law and the CS Act.

How Early Learning Management Can Assist

For those navigating this changing landscape, Early Learning Management can be an invaluable resource. Offering top-tier Childcare Management services, ELM helps PMCs efficiently operate and manage their childcare centres. Whether it’s understanding your role, implementing regulatory changes, or ensuring your centre’s operations align with new laws, ELM can guide you. Their team of experienced professionals are well-equipped to provide guidance, support, and strategic planning to ease your transition into this broader PMC role. With ELM’s comprehensive services, you can rest assured knowing your centre complies with the evolving rules and regulations. Don’t let the fear of change obstruct your passion for providing quality care and education. Partner with ELM, and together, let’s shape the future of early childhood education.

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