Ba businessman Jay Dayal has strongly criticised the proposed Employment Relations Act Amendment Bill, describing the blanket invalidation of non-compete agreements under Section 22(5) as “rubbish” and a “deeply flawed” move that could hurt Fiji’s business environment and investor confidence.
Mr. Dayal said the proposed amendment disregards legitimate business protections, undermines fair competition, and threatens investment in workforce development.
“The blanket invalidation of non-compete agreements under Section 22(5) is another rubbish in the Bill,” Mr. Dayal said.
“It ignores decades of well-established common law principles that already safeguard against unreasonable restraints while allowing for enforceable, narrowly tailored clauses where justified.”
He warned that removing the enforceability of non-compete clauses sends a dangerous signal to local and international investors.
“This provision sends a dangerous message — that Fiji does not value the protection of business innovation, commercial confidentiality, or the integrity of employer-employee trust.”
“It risks discouraging investment, particularly in high-skill sectors where knowledge transfer and client retention are critical.”
Mr. Dayal explained that non-compete covenants are essential tools for businesses to protect intellectual property, safeguard client relationships, and justify investments in employee training and innovation.
“Without these protections, businesses risk intellectual leakage, weakened competitiveness, and diminished investor confidence,” he added.
He said non-compete clauses not only protect companies but also help preserve Fiji’s national reputation for ethical and innovative enterprise.
“For countries like Fiji, where industrial self-reliance and export credibility are strategic goals, non-compete clauses play a broader role,” Mr. Dayal said.
“They encourage both local and foreign investment, support innovation ecosystems, and reinforce ethical business norms.”
Mr. Dayal cautioned that eliminating non-compete agreements could lead to rapid talent loss, exposure of trade secrets, and reduced incentives for companies to train staff or develop new products.
“Imagine if KFC or Coca-Cola lost their secret recipes after spending billions to create their brand — that’s what happens when you don’t protect intellectual property,” he said.
He urged policymakers to reconsider the amendment and adopt a balanced approach that protects both employee rights and business interests.
“Businesses are not asking for unrestricted power — just fair, enforceable protection against unfair competition,” Mr. Dayal said.
“Removing that entirely is a step backwards for Fiji’s economic future.”
