[File Photo]

Micro, small, and medium enterprises face significant hurdles in complying with evolving labor legislation and regulatory frameworks, affecting overall productivity in the economy.

While speaking on Labour law reforms, Deputy Prime Minister and Minister for Finance Professor Biman Prasad says this includes procedural and financial burdens placed on MSMEs, which often lack the resources and technical capacity to fully navigate compliance requirements such as minimum wages, leave entitlements, and union involvement.

Professor Prasad says this creates an ongoing challenge for employers striving to meet legal labor standards without compromising business viability.

Professor Biman Prasad [File Photo]

He says the government recognizes these compliance challenges and is undertaking multiple initiatives to support MSMEs.

“These include the soon-to-be-launched MSME Strategic Plan and national MSME database aimed at improving data-driven policymaking and targeted assistance. Key financial tools, such as the Access to Business Funding Act, and support from financial institutions like the Fiji Development Bank, are designed to help MSMEs access affordable financing to manage compliance and foster sustainable business growth.”

Professor Programs from partners provide skills development and capacity-building specifically tailored to MSME needs in adapting to regulatory demands and modern production methods.

Concurrently, the focus on creating a cooperative labor relations climate is seen as critical to raising productivity and investor confidence in Fiji’s economy.

The Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, emphasizes the need for balance between employer flexibility and employee protections to cultivate mutual respect and collaboration in the workplace.

This balance is framed as essential for strengthening industrial relations, reducing absenteeism, and boosting economic progress.

Government consultations continue on labor law reforms to achieve broad consensus among employers, unions, and other stakeholders, aiming for legislation that fosters compliance and cooperation.

This approach aligns with Fiji’s National Development Plan 2025-2029 and Vision 2050, where modernizing the labor market and improving productivity through harmonious industrial relations are key pillars.

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