Commercial Law Updates

Pursuant to Fiji law, in situations of serious employee misconduct the employer has two choices, either:

• a summary dismissal for cause (as set out in section 33 of the Employment Relations Act) when the employer is certain of the facts and those facts warrant immediate termination of employment; or
• to undertake a disciplinary inquiry to ascertain all the facts and then, if those facts are proven, take appropriate disciplinary action that may include termination of employment, suspension from employment or written warning.

In both situations, the employer is acting “for cause” and, if the employer terminates the employee’s employment, must provide the employee with written reasons for the termination of employment at the time of termination.

In this employment law update we consider summary dismissal (on the spot termination without a disciplinary inquiry process) and note that a recent judgement of Sanjay Lal v Carpenters Fiji Limited (Sanjay Lal v Carpenters) issued from the Employment Relations Court (“ERC”) on 10 August 2018 provides some useful guidance from the ERC in relation to summary dismissal.

In a previous commercial legal update we provided some general information regarding the employer's duties relating to dismissing an employee for misconduct. This update can be found: here

There have been concerns raised recently within the Fiji construction industry regarding the importation of substandard structural steel for use in construction projects in Fiji.

What happens if substandard quality materials are used in construction projects in Fiji and who is legally responsible?

In this commercial law update, we look at the legal position in relation to substandard materials and warranties implied by law in contracts for works and materials.

Every person over the age of 18 should have a Will, as without one, a person dies in a state of intestacy, meaning that where the deceased person’s property goes must be determined by the State in accordance with legal principles related to intestacy.

A well drafted Will is a legal document that enables a person (known as the Testator) to ensure that his or her wishes are respected after death with regard to how property owned by the Testator is distributed.

In Fiji, to be a valid Will it must comply with the Wills Act, 1972 which includes the requirement that the Testator’s intentions must be witnessed by two witnesses who are not beneficiaries of the Will. The strict legal formalities that lead to the formation of a valid Will are why it is advisable to seek a lawyer’s advice before the Will is prepared. The engagement of a private lawyer is not necessary, as the Legal Aid Commission may also provide competent advice in this regard, although before engaging any lawyer (public or private) it is important to understand what charges may apply to administer the estate via what is known as a grant of probate. Probate is the process by which the appointed executors of the Will are appointed by the High Court of Fiji to execute the Will of the Testator in favour of the persons who will benefit from the Testator’s wishes (Beneficiaries).

In this commercial law update we provide some general guidance (not legal advice) on how to minimise the chances of a Will being challenged and overturned by the Court.

Parliament has recently passed the Workmen’s Compensation (Repeal) Act 2018 (Act No 30 of 2018). As indicated by its name, it repeals the original Workmen’s Compensation Act 1964 and replaces it with a new regime from 1 January 2019.

Although the date of commencement of the Act is yet to be gazetted (so it is not in force at the date of writing this commercial law update), the effect of the Act is likely to mean that from 1 January 2019 Workmen’s Compensation claims must be brought before and handled by the Accident Compensation Commission (“ACC”) established pursuant to the Accident Compensation Act 2017.

In this commercial law update we briefly consider what this will mean for employees and employers in relation to workplace accidents.

The budget announcement on 28 June 2018 saw a number of budget amendment bills amending a number of existing legislation. This employment law update will focus on Bill No.21 of 2018, currently cited as the Employment Relations (Budget Amendment) Act 2018 (“amendment Act”), one out of the fourteen consequential bills that will give effect to the 2018/2019 national budget.

Bill No.21 of 2018 was enacted in Parliament on 12 July 2018, and saw the inclusion of Family care leave and Parental leave provisions in the current Employment Relations Act 2007 (“Act”). The amendments suggest Government’s intentions of supporting working parents and promoting work life balance into Fiji’s current work force.

The amendment Act, is not yet in force, and in this commercial law update we set out what Fiji employers should prepare for now as it seems likely that the amendment Act will be brought into force imminently. In accordance with the usual principles of Fiji employment law, the Act sets out minimum statutory standards that all Fiji employers may exceed but may not fall below.

Connectivity has made the access to information easier in this modern age, but it has also led to the increase in harmful online behavior such as cyberbullying, cyber stalking, internet trolling and exposure to offensive or harmful content, amongst other things. After much debate, Fiji has introduced the Online Safety Act, 2018 (the “Act”) to promote online safety and deter adverse online behavior and misuse of personal information. While it was enacted on 18 May 2018, it will not come into effect until the commencement date is gazetted.

At the date of writing the Online Safety Act has not appeared in the Fiji Government Gazette and therefore the legislation is not, as yet, in force. We will amend this update when it is “gazetted”.

In this commercial law update, we consider how this newly-introduced Act is intended to work.

In our Commercial Law update issued on 28 January, 2018 we provided an update on the policy changes made by the Immigration Department regarding work permits which can be found here

This further update specifically addresses recent policy changes by the Immigration Department to the 14 days business permit that may, once issued, be extended up to 3 months. This policy change by Fiji's Immigration Department means that it has now reverted to its original policy that enables 14 days business permits be extended for a period of up to 3 months by operation of section 9 (2) (c) of the Immigration Act 2003. 

Each construction contract has its own different areas of risk.

In this commercial law update, we consider only the general areas in which risks can arise and need to be managed in a construction contract.

The best way of ensuring the efficient management of your risk in a construction contract is to negotiate the management and allocation of those risks during the negotiations stage.

The more effort the parties put into ensuring a properly managed and allocated risk profile during the process of negotiation, the more chance there is of the parties avoiding otherwise preventable situations during the implementation of a contract.

In this commercial law update we set out how to negotiate a construction law contract and provide some basic points to note.

Construction projects take time to deliver and typically involve multiple parties, including a contractor and professional advisors.

Construction contracts have evolved to large documents that balance risk and reward and set out the processes that must be followed as the construction develops. Despite their apparent complexity the legal principles that underpin a construction contract are the same contract law principles that underpin any other legal contract.

In this update we briefly consider the legal principles and law that common law jurisdictions apply to construction projects.