Businesses ask if the Govt is trying to bankrupt small businesses by planning to implement up to $1M fine

Many small businesses from different parts of the country have raised the question to the government on whether it is trying to bankrupt them by trying to implement upto $1 million fine in the new Employment Relations Bill.

The questions were sent in by businesses from different parts of the country during fijivillage Straight Talk With Vijay Narayan.

Deputy Secretary for Employment, Atish Kumar said they are not trying to bankrupt businesses, stressing that the legislation ensures workers are paid their rightful dues.

He says that over the last five years, the Ministry has recovered more than $6 million in unpaid wages for workers.

Fiji Trades Union Congress National Secretary, Felix Anthony says they are not accusing all employers, and that good employers have nothing to worry about regarding these fines.

He says the $1 million fine or prison terms of up to five years under the Employment Relations Bill apply only to criminal activities such as wage theft and child labour.

Anthony says these laws serve as a deterrent for the bad apples who need to get their act together. Fiji Hotel and Tourism Association CEO, Fantasha Lockington called for a clear definition of wage theft, explaining that fines should be applied only for repeated offences because this could discourage new investors.

The employers are also concerned about the risks increasing where employers can face heavy fines and prison terms if their pay officers have a genuine oversight in wage payments.

Anthony says Fiji doesn't want rogue investors who exploit workers.

He says the goal is to ensure all investors respect workers’ rights, just as they would in any other country, and that this will not be compromised.

The Deputy Secretary says that fines will not be decided by the Ministry, as they have no jurisdiction.

He says the fines will be determined by the courts.

Fiji Commerce and Employers Federation CEO, Edward Bernard highlighted that the Bill is painting all businesses with the same brush.

He also questioned how many labour officers are actively checking records and prosecuting the small minority of bad employers.

FTUC Youth Wing President, Mere Vatege, stressed that worker rights should not be lowered, regardless of whether someone works in an SME or a large corporation.

Kumar says that on average, there are about 1,000 cases every year where employers pay the correct wage but then demand a certain amount to be returned later.

Bernard then questioned why criminal cases are included in this legislation when civil remedies under the Crimes Act already exist.

Kumar responded that although the criminal penalty has existed for the last 18 years, very few employers have been fined under it.

He adds that even with a strong law, without compliance and a proper deterrent, enforcement becomes very difficult.