LABASA Chamber of Commerce president Vinesh Dayal has warned that the proposed Employment Relations Bill of 2025 could unfairly impact small businesses across Fiji.
Under the current draft, Mr Dayal said fines for breaches of employment laws were applied uniformly to all businesses regardless of their size.
He said this one-size-fits-all approach put small businesses at great risk because they often lacked the financial resources to pay heavy fines or to hire professional human resources and accounting staff.
“Small businesses simply cannot afford to pay the same penalties as large companies,” said Mr Dayal.
“If this continues, many micro and small enterprises may be forced to shut down.”
While speaking at the recent Northern Division consultations on the proposed Bill, he said there should be a tiered fine system that scaled penalties based on the size of the enterprise.
“This would make the fines fairer and more manageable, especially for those businesses that form the backbone of Fiji’s economy.”
He said the Government should also prioritise educational and supportive interventions over fines, particularly for micro and small businesses.
“These small businesses employ around 80 per cent of Fiji’s workforce even if their contribution to GDP is smaller. We need to protect them not punish them.”
He warned if small businesses were not treated differently under the draft legislation many could be driven out of operation which could have serious consequences for jobs and communities across Fiji.
Law creates fear for investors
A LABASA businessman believes the Employment Relations Bill of 2025 could hurt small businesses and scare away investors if it continues to treat small administrative mistakes as criminal offences.
Labasa Chamber of Commerce president Vinesh Dayal has warned that the proposed Employment Relations Bill of 2025 could unfairly impact small businesses across Fiji.
Labasa Chambers of Commerce president Vinesh Dayal said many of the offences in the Bill were not intentional or serious enough to be considered a crime.
“These are not serious crimes. They’re simple mistakes or oversights, and some are not done on purpose,” he said.
Mr Dayal said even with the current law, business owners could still be taken to court and treated like serious criminals for minor issues with paperwork or staff matters.
“This sends the wrong message to investors. It creates fear.”
While speaking at consultations on the draft Bill in the Northern Division, Mr Dayal said, the law should only apply criminal penalties in serious cases such as fraud, deliberate harm, or when worker safety was at risk.
“No employer should be convicted if they can show they did everything they could to comply.”
He said the proposed Bill became an Act, small and medium-sized businesses should be given more time to understand and comply with the new rules.
“Instead of jumping straight to criminal charges, we should start with education, warnings, and support.
Let’s help businesses do the right thing, not punish them straight away.”
He said a 12 to 18-month adjustment periods should be given before any strict penalties are applied.
Bill proposes new age limit
A 16-YEAR-OLD could soon be eligible for full-time employment under proposed changes to the Employment Relations Act, which are currently under public consultation.
Standing Committee on Economic Affairs deputy chair Premila Kumar said the Bill proposes to raise the minimum age for employment from 15 to 16.
“If you’re a 16-year-old, you can be employed full-time, you can become a union member, and you can vote in union elections,” she said.
While speaking during a recent consultation session on the Employment Relations (Amendment) Bill 2025, she said it also outlined specific conditions for the employment of children aged 13 to 15.
“They can be given light work.
“They can work part-time and may be employed by a family business or institutions like churches or temples, just to do light, nonhazardous work.”
She said the proposed changes were aimed at strengthening protections for children while offering clarity on what constituted acceptable employment at various age levels.
Bill reinforces strike ban for law enforces
POLICE and corrections officers will be officially barred from going on strike if the amended Employment Relations Bill of 2025 is passed in Parliament.
Standing Committee of Economic Affairs deputy chair Premila Kumar said it was intended to ensure the continuous operation of law enforcement and correctional services.
“Previously, essential service sectors such as Fiji Electricity Authority, now Energy Fiji Limited, Water Authority, the police, and correctional services were excluded from the Employment Relations Bill,” she said.
The new law reinforces the Government’s position that essential security services must remain operational at all times, even during disputes.
Changes could hit industry hard, says Keefe
A CO-GENERAL manager for a five-star resort in Savusavu believes the proposed changes to public holiday entitlements in the Employment Relations Bill of 2025 could have a huge impact on the tourism sector.
Namale Resort co-general manager Bill Keefe said this would increase costs and operational challenges for resorts and hotels across the country.
“We have a pretty large staff.
This week alone, our payroll covers 255 employees. For easy math, take a company with 210 staff,” he said.
“If everyone is working six days a week, that means about 180 people are working each day to keep the resort running.”
The amendment proposes that workers, who are required to work on a public holiday, be entitled not only to double pay, as is currently the law, but also to an additional day off.
“With 11 public holidays a year, this new bill would mean we are paying 1980 extra workdays annually that we’re not currently paying for. That’s a massive cost shift.”
Mr Keefe said the proposal mirrored systems in countries such as Australia and New Zealand but questioned its suitability for Fiji.
“I understand the idea behind it, but hospitality makes up a much larger share of our economy here than it does over there.
I just don’t know whether the impact on tourism was fully considered.”
Standing Committee on Economic Affairs deputy chair Premila Kumar said such concerns were exactly what the committee wanted to hear during public consultations.
“We’ve asked the Ministry of Employment to provide us with economic impact data, and we’re encouraging stakeholders like you to put your own calculations in writing,” she said.
Ms Kumar said the committee was tasked with striking the right balance.
“We want to modernise Fiji’s labour laws, but we also want to support economic growth and ensure social protection.”
She said the real change was how to balance all three.
“Some things will need to stay, and some will need to go.”
