Part VIII of the Employment Act (Chapter 373) imposes a positive duty to house employees. It is one of the least known parts of the Act and one of the most valuable.
Section 119 — “adequate housing”
(a) in an urban area — housing of a standard prescribed by the relevant building authority;
(b) in a rural area — housing of a standard prescribed by the relevant local authority;
(c) where there is no local authority to prescribe the standard — housing of a standard approved by the Secretary.
The standard is external to the Act. It is whatever the building or local authority prescribes for that place — which means a dispute about adequacy is answered by reference to those standards, not by the employer’s own view.
Section 120 — who must be housed
| Urban area — s 120(1) | Rural area — s 120(2), (3) | |
|---|---|---|
| Who must be housed | All single persons, and all married persons not accompanied by dependants | All persons employed |
| Families | — | Separate accommodation for each family where the employee has accompanying dependants |
| Exempt: high earners | Employee on a wage equivalent to or more than a qualified tradesman | Not an exemption in rural areas |
| Exempt: owns a house | Within close proximity and reasonably accessible | Within close proximity and reasonably accessible |
| Exempt: has permission to occupy | Written permission of the owner, close and accessible | Written permission of the owner, close and accessible |
In a rural area the duty runs to all persons employed, and the “qualified tradesman wage” exemption does not appear. Section 120(3) then requires separate accommodation for each family where employees have accompanying dependants — not shared quarters.
Section 120(4) — consent for dependants cannot be terminated
The consent of an employer for an employee to be accompanied by his dependants cannot be terminated whilst the employee continues to be employed by that employer.
Once given, the consent is fixed for the life of the employment. That matters well beyond housing: the definition of accompanying dependants in section 1 turns on the employer’s consent, and it drives entitlements to repatriation, rations and medical treatment.
Section 120(5) and (6) — exemption and defence
- Section 120(5) — where it is impracticable to provide adequate housing, the employer may apply in writing to the senior labour officer in the province to be exempted; the officer may, by instrument, exempt the employer for a period and subject to any conditions specified.
- Section 120(6) — it is a defence to a charge under the section for the employer to prove that genuine efforts by him to obtain land for adequate housing have failed.
An exemption under section 120(5) is granted by instrument and carries conditions. Where an employer says it is exempt, ask for the instrument and read the conditions — they may require interim arrangements or a time limit.
Section 125 — what may be deducted
(1) Deductions relating to the provision of housing shall be in accordance with the deductions specified in registered awards relating to the employment concerned.
(2) Where an employee is on a wage equivalent to or more than a qualified tradesman, housing deductions may be made only in accordance with an agreement between the employee and employer, or between their respective registered associations.
Housing rent is also a permitted deduction under section 88(1)(f), which means it requires the employee’s prior written consent (s 88(2)) and counts towards the 50% cap in section 88(4). Section 82(d) requires the amount and the reason to appear on the pay statement.
Note also section 122: where housing is provided, illumination is at the employer’s cost subject to any registered award to the contrary, but the employer may deduct the cost of the electricity or illumination — not the cost of installation — from wages.
Section 126 — the right to remain
(1) Where an employee is provided with housing under the terms of his employment or by a rental agreement made in connection with it, his right to use that housing shall continue throughout the period of his employment.
(2) That right is not affected during periods where he does not perform his work, including (a) strikes and lay-offs; and (b) illness and leave.
(3) Where the contract expires or is terminated, otherwise than by dismissal under section 36(1), the employee may remain in the housing for a period not exceeding two weeks.
(4) Any agreement restricting the rights of an employee under this section is void.
Housing cannot be used as leverage. A worker on strike, laid off, on sick leave or on recreation leave keeps the house. Evicting a worker’s family during a dispute is a breach of section 126, and section 126(4) makes any agreement to the contrary void.
After the job ends, the two-week grace period in section 126(3) applies to every ending except a summary dismissal under section 36(1) — expiry, resignation, notice, mutual agreement and termination by the employee under section 36(2) all attract it.
The conditions the housing must meet
Sections 121 to 124 set the standards — water, lighting, mosquito nets and cleanliness. They are dealt with in standards for employer housing. Enforcement runs through section 142, which lets an authorised officer enter and inspect places where employees are employed or housed by day without notice, inspect sanitary arrangements and take samples of the water supply.
Checklist
- Is the place of employment urban or rural? The obligations differ.
- Do you have accompanying dependants with the employer’s consent? In a rural area that means separate family accommodation.
- Is an exemption claimed? Ask for the section 120(5) instrument and its conditions.
- Check the deduction against the registered award, and against your written consent and the 50% cap.
- Check the electricity deduction excludes installation costs.
- If you are on strike, laid off, ill or on leave, you keep the housing — section 126(2).
- When the job ends, you have two weeks unless you were dismissed under section 36(1).
- Any clause cutting these rights down is void — section 126(4).
Sources
- Employment Act (Chapter 373) — ss 1, 36, 82, 88, 119–126, 142; Part VIII
- Industrial Relations Act — PacLII 1986 Revised Edition
- Kinaram v Vanimo Forest Products Ltd [2011] PGNC 137; N4413
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.