Maldives Labor Law and Employment Policy Overview

Employment Law Overview

• Key Legislation:
  • Employment Act (2008)
  • Social Security Act (2010)
  • Workmen's Compensation Act (2012)
• Legal Characteristics:
  • Aims to protect employee rights and welfare
  • Regulates minimum wage, working hours, leave, and termination of contracts

Employment Contract Requirements

• Contract Types:
  • Fixed-term contracts
  • Indefinite-term contracts
• Contractual Terms:
  • Must include job description, remuneration, working hours, leave, and termination provisions
• Language and Currency:
  • Contracts must be written in Dhivehi (local language)
  • Currency used is the Maldivian Rufiyaa

Working Hours Regulations

• Standard Working Hours:
  • 40 to 48 hours per week, over five days
• Rest Days and Breaks:
  • One rest day per week
  • 30-minute break after every four hours of work

Leave Policy

• Annual Leave:
  • 30 days of paid annual leave per year
• Public Holidays:
  • 17 statutory public holidays
• Special Leave:
  • Sick leave: 30 days of paid sick leave per year
  • Maternity leave: 60 days of paid maternity leave
  • Paternity leave: 3 days of paid paternity leave
  • Compassionate leave: 10 days of paid leave to care for a sick relative

Employee Severance and Termination

• Notice Period:
  • Ranges from two weeks to two months, depending on years of service
• Severance Pay:
  • Payment of wages and other benefits for the required notice period if no notice is given
• Unfair Dismissal Protection:
  • Employers cannot dismiss employees without just cause

Taxation

• Personal Income Tax:

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• Social Security Contributions:

  • 7% contribution from both employees and employers

Health Insurance

• Insurance Policy:
  • Employees must participate in the national health insurance scheme
• Coverage:
  • Basic healthcare services

Wages and Benefits

• Minimum Wage:
  • MVR 3,100 per month
• Salary Structure:
  • Monthly salary
  • 13th-month salary (not mandatory)

Work Permits and Visas

• Permit Requirement:
  • Foreign employees require a work permit
• Application Process:
  • Employer applies to the Department of Immigration on behalf of the employee

Confidentiality and Non-Compete Clauses

• Enforceability:
  • Confidentiality and non-compete clauses are enforceable in the Maldives
• Common Provisions:
  • Restricting employees from engaging in similar work after termination
  • Protecting the employer's trade secrets

Training and Development

• Legal Requirements:
  • Employers must provide safety training and skill enhancement training
• Government Support:
  • Government provides training grants and programs

Workplace Diversity and Inclusion

• Legal Requirements:
  • Discrimination based on race, religion, gender, or disability is prohibited
• Enforcement Measures:
  • Employers must have policies and procedures in place to prevent discrimination

Remote Work Policy

• Legal Framework:
  • No specific legal framework for remote work in the Maldives
• Tax and Insurance Implications:
  • Tax and social security implications of remote work depend on the specific circumstances

Key Website Addresses

• Ministry of Employment, Maldives: https://www.employment.gov.mv/