$1M fines and jail terms ‘too harsh’, says Fiji Airways

Fiji Airways has raised serious concerns over the scale and scope of penalties proposed in the Employment Relations Bill, warning that the legislation risks criminalising inadvertent or minor breaches and imposing disproportionate sanctions on employers.

Making submissions before the Parliamentary Standing Committee on Economic Affairs, Fiji Airways Chief People & Performance Officer Anna Morris says Clause 38 of the Bill is of particular concern, as it introduces severe penalties for failure to pay wages on time, including fines of up to $1 million and imprisonment of up to five years, as well as personal liability for directors where an employer entity has habitually failed to pay wages.

Clause 38 of the Bill states that an employer commits an offence if wages or other entitlements required under a contract of service or employment contract are not paid in full, on or before the due date.

Upon conviction, a natural person faces a fine of up to $20,000 for a first offence and up to $100,000 or five years’ imprisonment, or both, for a second or subsequent offence.

A body corporate faces fines of up to $200,000 for a first offence and up to $1 million or five years’ imprisonment, or both, for repeat breaches.

Morris says the airline group supports strong action against deliberate wage theft and worker exploitation, but argued that the provision, as currently drafted, fails to distinguish between intentional misconduct and good-faith payment errors.

Insert: Morris - Intent is irrelevant Feb 19 

She notes that wage payments rely on complex systems and processes that are not always entirely within an employer’s control.

She says in the bill, even a late payment caused by administrative oversight could amount to a criminal offence.

Morris recommends that Clause 38 be amended to rely primarily on existing civil enforcement mechanisms through the Employment Tribunal and Employment Court.

She is calling for substantially reduced maximum fine thresholds, removal of personal liability for directors, and a requirement that intention or recklessness be proven before criminal sanctions apply.

She also proposed introducing a statutory defence where employers can demonstrate that wages were paid, or payment was attempted, on time, excluding minor or technical breaches from criminal treatment, and reserving criminal prosecution for clear cases of deliberate wage theft, fraud or worker exploitation.

Morris adds that strict enforcement measures, if applied consistently, would extend to all employers, including government ministries, underscoring the need for fairness and proportionality.