Tips for Employers on Staff & Employment Law
Employment Law can be tough to understand sometimes. VCCI has created some resources for you to explain simply how the labor laws work and help you to know how to manage severance, contracts, leave and more.
The online Employers Guidebook can be found on the VCCI website here: https://vcci.vu/resources/en-employer-guidebook/
It is available in 4 languages: English, Bislama, French and Mandarin.
VCCI also offers an online Employment Contract Builder - You will be guided on how to build an employment contract that has good legal terms, and provided a completed template in Word format for final editing. Visit this link to use this great online tool: https://vcci.vu/resources/employment-contract-builder/
VNPF - Employers and their Responsibilities
An Employer employing any person(s) earning VT 3,000 per month or more is required to apply for registration with the Vanuatu National Provident Fund within seven (7) days of starting a business. To register, the Employer must use Form E that can be obtained from VNPF.
When the Employer registers with the Fund, a registration number is given to the Employer and the Employer is issued a Certificate of Registration. The registration number must be used by the Employer on all correspondence with the Fund and in documents related to the payment of contributions.
An Employer is a body or person (company, association, or a group of persons) with whom an Employee has entered into a contract of service or apprenticeship.
For more information, visit: https://www.vnpf.com.vu/employer_resp.
Registration of New Employees
Every Employer must ensure that all Employees apply to register with the Fund within fourteen (14) days of employment by filling out an Employee Registration Form for Membership.
The Employer must ensure that all particulars on the Employee Registration Form for Membership is completed and submitted with a certified document of proof of date of birth (Birth Certificate, Driver’s License, Passport or Marriage Certificate). Without the proper proof of date of birth, the Employees registration form for Membership cannot be processed.
When the new Employee is accepted as a Member of the Fund, a Certificate of Membership with a registration number will be issued. This Registration number is the employee's VNPF number used for identification while the member continues to be with the Fund.
Note: It is the responsibility of the Employer to ensure that the new Employee registers as a Member of the Fund. The Employer is required to witness the Employee's signature (or left thumbprint), certify the accuracy of the information given in Form M, and to send the form to the Fund.
If the new Employee has already been registered as a Member of VNPF, then that Employee does not have to apply again for registration. In this case, the Employee need only to show the employer, his or her certificate of membership (which will have the member number).
Rate of Contribution
Employers must contribute, on behalf of the member, with 4% of employee’ gross earnings per month.
Severance pay, gratuity payments (due under terms of employment), and Housing Allowance, reimbursement of monies spent on behalf of the Employer does not form part of the gross remuneration.
How to send in the contributions?
Payment of the contributions should be made directly to the Vanuatu National Provident Fund offices either through mail or in person. However, it is advisable that cash payments be made in person. Employers in the outer islands are advised to make the payment of contributions through the branch of the National Bank of Vanuatu closest to the location of the business.