Part X of the Employment Act (Chapter 373) creates nine offences, and further offences are scattered through the earlier Parts. The penalties are all monetary and, by modern standards, small. They still matter: a conviction under an employment law is itself a ground for terminating a contract without notice under section 36(1)(a)(vii) and section 36(2)(a)(ii).
Part X — the offences
| Section | Offence | Maximum fine |
|---|---|---|
| 133 | Fraud, misrepresentation, intimidation, coercion or undue influence for employment purposes | K500.00 |
| 134 | Undue influence to induce purchase of goods from any person | K300.00 |
| 135 | Agent or recruiter failing to ensure the person who travels is the person engaged | K200.00 |
| 136 | Hiring out of labour for gain | K300.00 |
| 137 | Failure to answer questions, produce books, obey a lawful order; false entries or erasures | K200.00 |
| 138 | Employer refusing information reasonably required by an employee, or penalising them for asking | K200.00 |
| 139 | False claims to hold a document issued under the Act | K200.00 |
| 140 | Obstruction, abuse, threats, assault or impersonation of an authorised officer | K300.00 |
| 141 | General penalty — contravening any provision where no other penalty is imposed | K100.00 |
Section 133 — the widest offence
(a) inducing an employee to enter into or refrain from entering into employment under this Act;
(b) inducing an employer to engage or refrain from engaging an employee;
(c) inducing an employer or employee to refrain from exercising his rights under this Act;
(d) misleading an employer or employee as to his rights, duties and responsibilities under this Act or under a contract of employment;
(e) inducing an employer or employee to fail to carry out a duty under this Act or a contract; or
(f) inducing a person to take action to terminate a contract,
is guilty of an offence. Penalty: a fine not exceeding K500.00.
Paragraphs (c) and (d) are the practically important ones. Telling a worker that they have no right to overtime, or that they must waive leave, or that signing means they cannot complain, is capable of being an offence — and it is not confined to the employer. “A person” includes recruiters, agents, supervisors and third parties.
Section 133 also has a civil counterpart: under section 36(2)(a)(i) an employee induced to enter the contract by force, fraud or a materially misleading statement may terminate without notice.
Wage offences outside Part X
| Section | Offence | Maximum fine |
|---|---|---|
| 11(1) | Employing, or remaining in employment, otherwise than in accordance with the Act | K300.00 |
| 29 | Piece-rate employment in undeclared work | K300.00 |
| 31(3) | No Piece-rate Register, or refusing inspection | K100.00 |
| 92 | Limiting an employee’s right to dispose of wages; compelling purchases at the employer’s shop | K500.00 |
| 94 | Imposing a fine of any kind on an employee | K500.00 |
| 95 | Paying wages in a shop, store, canteen or place where liquor is sold (unless the employee works there) | K300.00 |
| 96 | Failure to pay wages; unauthorised deductions; any breach of the wage provisions | K500.00 |
| 143 | Secrecy — an authorised officer disclosing a person’s business affairs | K200.00 |
An employer who imposes a fine of any kind on an employee is guilty of an offence, with the highest penalty in the Act. Deducting money for lateness, breakages, till shortages, lost keys or uniform damage as a penalty is not a lawful deduction under section 88, and it is a section 94 offence.
The narrow exception in section 88(1)(d) — a shortage of money due to the employee’s negligence where the contract specifically provides for employment in connection with the receipt, payment and custody of money — is subject to any direction by the Secretary, and still requires written consent under section 88(2).
Section 136 — hiring out of labour
An employer who, for gain, places (or permits to be placed) an employee under the immediate authority of a person other than the employer, a member of the employer’s firm or partnership, or a person employed by the employer, commits an offence. A prosecution requires the consent of the Secretary (s 136(2)). See hiring out of labour.
Who prosecutes, and how a court approaches it
- Section 145 — the Secretary, and any officer authorised by the Secretary, may institute and appear in proceedings for a breach, and may appear on behalf of an employee in the employee’s own civil proceedings.
- Section 149(4) — the “equity and good conscience” rule does not apply to a prosecution. Criminal proceedings are conducted in the ordinary way, with the ordinary standard of proof.
- Section 150(4) — where a person appointed by the employer under section 150 is charged, it is a defence that, within the resources made available and the authority vested in him, he took all reasonable steps to ensure compliance. The employer itself is not relieved of liability (s 150(3)).
- Section 144 — an authorised officer is immune from suit for anything done in good faith under the Act.
Fines are not the main remedy
A K500 fine is not what makes the Act effective. The substantial consequences are civil:
- Section 11(4) — a term less favourable than the Act is void, so the statutory entitlement is recoverable.
- Section 15(2) — without the record of an oral contract, the employee’s account of the terms is conclusive.
- Section 38 — on an attested contract, a court may award an employee the value of lost wages, allowances and other expense.
- Section 93 — wages up to four months have priority over all other debts of the employer.
- Section 146 — State expenditure on the employer’s account becomes a first charge on the employer’s estate.
Where the conduct goes beyond the Act — violence, threats, deception for gain, or withholding a person’s documents — the Criminal Code and, for trafficking and forced labour, its 2013 amendments may apply. Section 6 makes clear that the Employment Act does not relieve an employer of any duty or liability imposed by any other law.
Sources
- Employment Act (Chapter 373) — ss 6, 11, 29, 31, 36, 38, 88, 92–96, 133–146, 149, 150; Part X
- Criminal Code Act (Chapter 262)
- Industrial Relations Act — PacLII 1986 Revised Edition
- Sarathy v PNG Power Ltd [2021] PGNC 681; N10316
Before relying on anything here, read the current text of the Employment Act (Chapter 373) and check for later amendments. If a decision matters to you, get advice — start with the Office of the Public Solicitor, or find a firm in the law firms directory.