Division 4 of Part III of the Employment Act (Chapter 373) deals with written contracts. Its opening provisions are strict: a written contract that does not comply with section 19 is not a defective contract — it is no contract at all.
Section 19 — two routes, and only two
A written contract of service is of no force or effect unless and until one of the following has happened.
| Section 19(a) — literate employee | Section 19(b) — illiterate employee | |
|---|---|---|
| Employee must | Sign the instrument of agreement, and certify under his hand that he has read, understood and agreed to abide by the terms endorsed on it | Sign, or affix his mark or a thumb impression, in the presence of a labour officer |
| Employer must | Endorse a note that he believes and is satisfied that the employee is literate and that before signing, the employee read and understood the agreement | — |
| Labour officer | Not involved | Must certify that section 23 has been complied with |
| Result | An ordinary written contract | An attested contract |
| Copies | Duplicate — s 20(2) | Quadruplicate — s 20(3) |
Everything downstream turns on which route was taken. Notice under section 34 must be in writing for a section 19(a) contract. Repatriation under section 45, final payment of wages under section 84, and the court’s award power under section 38 all attach specifically to attested contracts.
The employer’s literacy endorsement
The employer must endorse on the agreement a note that he believes and is satisfied that (A) the employee is literate, and (B) before signing, the employee read and understood it.
This is a positive obligation on the employer, and it is the practical protection against a worker being handed a document and told to sign. If the employer is not satisfied of both matters, the section 19(a) route is not available and the contract must go through a labour officer under section 19(b).
An employment relationship does not disappear because the paperwork failed. What disappears is the written contract. The parties are then in an oral contract of service — deemed to run for the wage period, renewing automatically under section 17, with the section 15 record obligation and the section 15(2) evidential rule against the employer.
That is often a worse outcome for the employer than for the employee, because the terms it wanted to rely on — a long fixed term, a restraint, a particular notice period — are exactly the terms that fall away.
Section 20 — drawing it up and handing it over
- Section 20(1) — the employer is responsible for having the contract drawn up. Not the employee, and not the agent.
- Section 20(2) — a section 19(a) contract shall be in duplicate: one copy retained by the employer at the place of employment, one copy handed to the employee.
- Section 20(3) — an attested contract shall be in quadruplicate: one retained at the place of employment, one handed to the employee, and two handed to a labour officer for retention or distribution as prescribed.
Section 20 says the copy shall be handed to the employee. An employer who keeps both copies “in the office” is not complying. Ask for yours on the day you sign, and keep it somewhere other than the workplace.
Section 18 — contractual age
Notwithstanding any other law but subject to this Act, any person 16 years of age or over may enter into a written contract of service.
Sixteen is the threshold for a written contract. It is not a general minimum working age — the rules on younger workers are in Part VI, and are dealt with in employing young persons, together with the restrictions on hours and on injurious conditions.
What the contract must contain
Section 21(1) requires a Part III contract to contain the section 14 particulars, and section 21(2) requires an attested contract to be in the prescribed form. Section 22 governs how long it may run — see contract periods.
Before you sign
- Read it, and do not certify that you have read and understood it if you have not.
- Check the section 14 particulars are all there — especially the total wage and every deduction.
- Check the employer’s literacy endorsement is on the document if you are signing under section 19(a).
- Take your copy under section 20(2) or 20(3).
- Check the notice period against section 34 — and remember section 34(1) may switch the statutory regime off for the first two years.
- Remember section 11(4): any term less favourable to you than the Act is void to that extent, signature or no signature.
- If anything was said that is not in the document, ask for it to be written in before signing.
Sources
- Employment Act (Chapter 373) — ss 11, 14, 15, 17–23, 34, 38, 45, 84
- Porgera Joint Venture v Kami [2010] PGSC 11; SC1060
- Lo v Hevilift Aviation Ltd [2023] PGNC 177; N10413
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.