The Fiji Commerce and Employers Federation (FCEF) is issuing an urgent call to action for default businesses to clear outstanding Fiji National Provident Fund (FNPF) contributions, warning the window to clear millions in legacy debt under the present amnesty program was fast approaching.
With more than $8 million still outstanding, including $4.8m from active employers, the Federation has partnered with the FNPF to launch a nationwide series of divisional employer forums to help businesses resolve their debts amicably.
“I urge these employers to contact the FNPF urgently to resolve their cases amicably and before the end of the amnesty period,” FCEF chief executive officer Edward Bernard said.
Mr Bernard said the employer forum started with the Central Division on Tuesday this week.
“The objective is to reach out directly to employers through FCEF and resolve as many cases as possible.”
Mr Bernard said it was encouraging to see some employers had responded positively to the amnesty program, citing the recovery of $913,000, adding to the $2.8m recovered against the legacy debt of $10.8m.
“Social security is an important part of decent work and in the current labour market, aspiring to be a responsible and employer of choice is critical.
“Therefore, ensuring that statutory contributions are paid on time is also a strategy to attract and retain workers,” Mr Bernard said.
The amnesty period ends on October 31.
The Fund had also revealed that 1292 inactive employers owe $5.99m in legacy contribution debt.
Some debts date back to 1995 and includes complex cases involving businesses that had ceased operations, been liquidated or were being subjected to winding-up proceedings. While those debts were largely considered unrecoverable in those circumstances, the Fund continues to take appropriate recovery action wherever possible.
At the commencement of the amnesty campaign, the Fund had identified 2446 employers with legacy contribution debt, and 35,200 affected Fund members it intended to assist during the amnesty period.
