A Memorandum of Understanding signed on 6th May 2016 between the Vanuatu Investment Promotion Authority (VIPA) and the Vanuatu National Provident Fund (VNPF) now enables both entities to update their respective data bases so that future dealings between them will be a simple and consistent process.

Under the terms of the understanding, VIPA will ensure that foreign investors register as Employers and also register their employees whenever they renew their VIPA foreign investment approval certificate (FIAC) registration.

VIPA will also ensure that any information provided from foreign investors regarding their registration with the VNPF will correspond with the VIPA FIAC records.

On the other hand, VNPF is obliged to verify and confirm VIPA’s records of foreign investors as Employers and ensure that all requirements of the VNPF Act [CAP 189] of 1986 and all amendments in respect to the Act are met.

The signing comes after two years of negotiating the terms of the MOU and has been very much welcomed by both parties.

VIPA shares VNPF’s concern that compliance towards the VNPF Act is needed, particularly as there have often been cases where foreign investors engaging employees locally have bypassed VNPF registration as Employers and subsequently, failed to pay their employees’ VNPF contributions.

This was a cause for concern as workers were losing out on saving for their retirement. The signing of this MOU marks a new page in developing working relationships that will benefit not only the organisations themselves, but more importantly, the people they serve.