When you start expanding your business on an international scale, you have to consider a range of employment laws that may be dramatically different from the laws at home. While an expansion offers opportunities, it also presents challenges.
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At Globalization Partners, we offer a simplified means of international expansion. When you work with us, you get a team of legal experts and HR professionals on your side to ensure your business is compliant and your employees are satisfied.
Our Employer of Record model in Fiji takes local employment regulations into account and allows you to give all risks to us. Our streamlined software offers employee and payroll management, and our team is always a resource for your international practices. We’ll help you find and hire the best talent for your positions and even design benefits packages for compliance and competition in the job market.
Doing Business in Fiji
Fiji’s business world is characterized by informal employment for meeting minimum living requirements. However, the economy continues to grow and offers promise. With new employment opportunities, residents can find more substantial ways to thrive on the islands.
While some aspects of Fiji’s labor market are relatively unregulated, other qualities are more advanced than different Pacific Island countries. With wage councils, anti-discrimination laws, and a recognized minimum wage, employers must think about a range of laws when hiring employees. With the proper provisions and growth opportunities, residents can make excellent assets to your business growth.
When hiring an employee for less than six months, you can use an oral employment contract. You should explain the specifics of the position, including wages, working hours, and the date of completion.
If an employee works for six months or longer, you must create a written contract that is signed or stamped with a fingerprint. This contract should include wage, working hours, time off, and any other position specifics. Renew this contract annually, or every two years if the employee’s family accompanies them or they wish to continue service.
Before entering a contract, employees should receive a medical examination that deems them fit for employment.
Fiji’s labor laws allow employees to work a maximum of 48 hours over six days a week, before overtime. You should outline overtime limitations within the employment contract. If an employee works 45 hours or less a week, they must work five days weekly.
For every year of employment, workers must receive a minimum of 10 days paid leave. They should receive wages based on what they would’ve received on the day they take off. However, you can provide more than the outlined minimum.
If an employee is absent for 20 days or more under unaccepted circumstances, you don’t need to provide time off during the following year.
After an employee has served your company for three continuous months, they’re entitled to at least 10 days of paid sick leave. Just like vacation time, you can choose to give more sick leave than the required minimum. Workers should receive their standard compensation on those days off.
The country’s labor laws also account for three days of paid bereavement leave should an employee lose a loved one. This leave is separate from the sick day quantity.
Employees always receive 12 public holidays off. These include:
- Queenʼs Birthday
- New Years Day
- Prophet Mohammedʼs Birthday
- Good Friday
- Easter Saturday
- Easter Monday
- Ratu Sir Lala Sukuna Day
- Fiji Day
- Christmas Day
- Boxing Day
- Youth Day
If New Years Day, Prophet Muhammed’s Birthday, Christmas, or Diwali falls on a weekend, the day off should move to the following Monday. Since Boxing Day follows Christmas, it should be recognized on a Tuesday when Christmas Day is recognized on a Monday.
The Minister may move public recognition of holidays to different days when they fall on a day other than Monday.
If they have worked for your company for at least 15 days, women are entitled to 84 total days of paid maternity leave. They can use these days in any arrangement, before or after delivery. If they choose to work before delivery, they must have a medical certification clearing them to do so.
If it’s the first three births they’ve had under their employment contract, the worker receives their normal wages during this time off. For the fourth and subsequent births, employees will receive half their standard wages.
An employee can choose to take more than the allotted 84 days, but they are not required to earn pay past the legal time off. After an amendment passed in 2018, men were able to receive five days of paternity leave. This number has since dropped to two after an act passed in May 2020 for coronavirus business relief.
Fiji has private and public health institutions across the islands. The public institutions provide care for free, but they don’t have the same resources as private hospitals. Labor laws don’t claim health insurance as a requirement, but you can deduct a portion of an employee’s wages as a health insurance contribution if they agree.
You are responsible for deducting income taxes from employees’ paychecks. Tax brackets change depending on the income level. When employees make a high enough income, you should deduct other taxes for social responsibility and climate adaptation. Pension schemes are also optional.
Termination and Severance
Termination of employment can happen on several different terms. A contract may come to its written or agreed end, or both parties may agree to end the contract. Other qualifications for termination include:
- Misconduct in the workplace.
- Lawful disobedience.
- An evident lack of skill that an employee claimed to have.
- Habitual neglect of duties.
- Continual unexcused absences.
If the contract is terminated within the first one to 12 months of service, an employee receives 5/6 of their pay for each completed month of work. For one year or more of service, an employee gets the same severance, plus payment for any days off they didn’t take.
Benefits and Bonuses
There are no specific benefits or bonuses outlined in the country’s labor laws, but you can provide extra compensation as you see fit.
Choose Globalization Partners When You Expand Business to Fiji
At Globalization Partners, our global PEO services and Employer of Record model accelerate your international expansion and reduce the associated risks. We have the knowledge and resources to support your company wherever you choose to go. Have peace of mind while you focus on what you do best — running your business.
Contact us today to learn more about what we can do for you during your global expansion to Fiji.