THE Micro, Small and Medium-sized enterprises (MSMEs) in Fiji – contributors of 18 per cent of Fiji’s Gross Domestic Product (GDP) and employers of approximately 60 percent of our workforce, including the majority of women and youth – are not happy with the Employment Relations (Amendment) Bill 2025 in its current form.
And they are calling on the Government to return the Bill to the Employment Relations Advisory Board (ERAB) and give them the responsibility to negotiate, consult and draft a better Bill that will be fair, balanced and support economic development. The National Development Plan (NDP) aims to increase MSME contribution to 22 percent of GDP by 2029, yet the Bill in its current form is anything but progressive or supportive of this target, they argue.
“The majority of MSMEs operate in rural and informal sector and eff orts to entice them to transition to formality is a major challenge faced by Government,” they said in a statement yesterday from the MSME Council, one of nine councils under the Fiji Commerce and Employers Federation (FCEF), Fiji’s apex private sector body.
“Provisions in the Bill such as criminalization, strict liability, increased powers of labour officers, increase in annual leave, etc, will only deter MSMEs from formalising and risk the sustainability of their micro and small enterprises.”
MSME’s, they further argue, are already facing many challenges such as high cost of doing business, capacity to meet compliance, shortage of skills, impact of climate change and access to finance.
“These challenges are not only reflected on the NDP but have also been discussed and acknowledged during the National Economic Summit organised by Government in 2023,” they stated.
“The Bill assumes that all businesses are large businesses and therefore able to comply with high fines and high labour standards.
“Many Fiji employers, particularly MSMEs are finding it challenging to sustain their businesses, including paying their workers.
“The MSME networks are calling on the Government to return the Bill to ERAB and give them the responsibility to negotiate, consult and draft a better Bill that will be fair, balanced and support economic development.”
