Proposed law targets wage theft with $1m fine

Workers being forced to sign for their full pay and then hand back cash to their employer is happening in Fiji — and a proposed law wants to stop it with a fine of up to $1 million.

Deputy Chair of Parliament's Standing Committee on Economic Affairs Premila Kumar raised the issue on Tuesday during a submission hearing on the Employment Relations Amendment Bill, describing a practice where records appear clean but workers are quietly exploited.

"The records show that the worker received the full amount and the worker has signed off, but then on Monday the worker has to come back and return $100 back to the employer," Ms Kumar said. "Such practices do exist in Fiji."

She said workers in areas with limited job opportunities stay silent because they fear losing their only source of income.

The bill — which proposes changes to how employers and workers are treated under the law — includes a provision targeting what is known as wage theft, where employers underpay or secretly recover wages from workers.

Suva Retailers Association President Jitesh Patel, whose association represents around 220 businesses, said the SRA does not support such behaviour.

"We as a body don't condone that because workers do have their rights," he said.

However, Mr Patel asked the committee to consider a scaled penalty system rather than a flat $1 million fine, warning that such a large penalty could force small businesses to close and ultimately cost workers their jobs.

Ms Kumar acknowledged the concern and said the bill was designed to offer options, not a one-size-fits-all approach.

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