EMPLOYERS who believe they are helping staff by facilitating personal wage deductions may be breaking the law.
Addressing the BSP Life Fiji Human Resources Institute (FHRI) Annual Convention in Nadi last week, Munro Leys partner Jon Apted said many businesses remain unaware of the limited number of grounds allowed for docking pay.
“In my practice I discover (most employers) are not aware of this,” he said.
“They think they’re being nice to their workers when the worker wants a deduction to help them, they facilitate, but you are breaking the law if those deductions are not on the list.”
Mr Apted emphasised that Fiji’s legal framework provided a specific list of permissible deductions, and straying from it carried heavy financial penalties.
Under current regulations, the maximum amount an employer could deduct from a worker’s wages each pay cycle was capped at 50 per cent.
“Except where there’s a home loan. You can go to 70 per cent, I think, or 75 per cent.
“So, a lot of people make too many deductions, unauthorised, and they’re making deductions that are more than what’s required.”
Mr Apted also highlighted new provisions that strictly prohibited charging workers for essential work-related items.
“A new provision is you cannot make deductions for uniforms or PPE, which you require.
“You can’t recharge for travel and accommodation above what you actually pay.”
Mr Apted said fines for non-compliance were set to increase significantly, reaching $10,000 for individuals and up to $100,000 for companies on second offences.
Turning to the broader issue of wage theft, Mr Apted labelled the State as the primary culprit in failing to meet its financial obligations to civil servants.
“The worst offender is the Government itself.
“They never pay overtime, on time, to their nurses, to their doctors, to their teachers, so will we see the PSs (permanent secretaries) being prosecuted and charged?”
