FIJI GLOBAL NEWS

Beyond the headline

A looming fuel crisis and rising costs risk pushing Fijian businesses to the brink and increasing unemployment unless the government carefully implements proposed labour law changes, lawyer Jon Apted told Parliament’s Standing Committee on Economic Affairs this week.

Apted, of law firm Munro Leys, warned that the economic squeeze from higher operating costs combined with an Employment Relations Bill that significantly tightens employer obligations could discourage hiring and leave workers worse off overall. “We have the fuel crisis starting … businesses may not be able to provide work to everybody,” he told committee members, arguing the twin pressures could exacerbate job losses rather than protect employment.

Central to Apted’s submission was concern about a substantial expansion of labour inspectors’ powers in the Bill. The draft law would allow inspectors to enter workplaces without consent, seize documents, take samples and issue penalty notices — measures Apted said go well beyond current practice and could create regulatory uncertainty for employers. He also highlighted new workplace penalties that would permit an employer to face compensation claims, civil penalties and criminal liability for the same conduct, a layering of sanctions he said “creates fear around hiring and firing decisions.”

The Bill also tightens protections for workers by introducing tougher unfair dismissal rules and increasing redundancy payouts. While these changes are designed to strengthen employee rights, Apted warned that the breadth of the reforms — which would apply to virtually everyone who employs staff — threatens to hit small employers hardest. “Small employers will be the most vulnerable,” he told the committee, noting many micro and family-run enterprises lack legal teams or the cash reserves to absorb larger payouts or prolonged legal disputes.

Apted further raised the prospect that the comprehensive new regime could deter foreign and domestic investment. “Why would investors come to Fiji if the risks are too high,” he asked, suggesting investors may view the combined economic and regulatory pressures as a disincentive to create new jobs locally. That concern frames the Bill not only as a labour policy issue but as a factor in broader economic competitiveness amid an already difficult cost environment.

Committee members were also reminded that the legislation contains progressive measures: the Bill proposes miscarriage leave and expanded parental support, among other worker-focused reforms. Apted said his critique was not of the policy intent but of its scale and the speed of implementation, urging lawmakers to balance protections with measures that preserve employers’ ability to operate and grow.

Apted’s testimony is the latest development in parliamentary scrutiny of the Employment Relations Bill as lawmakers weigh how to overhaul workplace laws in a time of economic strain. His warnings underscore a central policy challenge: strengthening worker protections while avoiding unintended consequences that could reduce employment and dampen investor confidence during a period of rising costs and fuel uncertainty.


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