Enforcement of the new Employment Relations Act 2020 should be deferred “until we are able to recover from the effects of this global pandemic.”, Tonga's Chamber of Commerce and Industry Inc. stated today.

In a widely circulated notice, TCCI urged the government to delay implementation, stressing that the timing is wrong.

“With the current dire circumstances of the economy due to COVID-19, it is not the time to introduce new policies and legislation that may have a negative impact on the private sector,” TCCI stated.

“We are trying to confirm an appointment with the relevant Ministry to request that they consider a deferment of the implementation date of the legislation until we are able to recover from the effects of this global pandemic.”

The Employment Relations Bill 2020 was passed by the Legislative Assembly yesterday, to become an Act of Parliament. The Act will now be presented to King Tupou VI for assent, and needs to be Gazetted before it becomes Law.

Controversial



The TCCI said the drafing of this legislation started in 1982, “with various drafts over the years, and has been slated as one of the most controversial pieces of legislation ever drafted.”

Tonga's tourism industry and related sectors appear to be particularly vulnerable under the Act, which will require them to pay wages to an employee “for each day on which the employer fails to provide work, at the same rate as if the employee had performed work each day.”

Tonga's six months long border closure is causing all tourism properties to fail to provide work. There is little or no domestic tourism in Tonga and the CoViD-19 restrictions have decimated the industry, which has not recovered from two severe cyclones.

Minimum wages

The Employment Relations Bill 2020 applies to all employer and employees in Tonga, with few exceptions.

The Act requires a written employment agreement between an employer and an employee of more than two months, enforced with spot fines of up to $5,000 for an individual or $10,000 for a company.

Other offences under the Act are are liable to a fine of up to $50,000 or a term of imprisonment of up to 2 years, or both. 


The Act gives the government power to establish commissions to consider setting minimum wages for particular sectors, and other entitlements including annual leave, maternity leave, sick leave, casual leave and holiday pay.

It can also establish occupational safety and health standards and establish rules governing the employment of children, and enforce equal pay for equal work. The Act establishes an 8 hour day and 40 hour week, with a formula for overtime rate calculations. It also limits the total hours of work per week to no more than 48 hours.

It establishes a Labour Division of the Ministry of Labour and sets up an Employment Relations Advisory Committee.

The Act was introduced by Hon. Samiu Kuita Vaipulu
, the Minister of Trade and Economic Development.