President Ratifies Amendment Imposing MVR 50,000 Fine on Employers Negligent Towards Expatriate Workers
In a landmark decision aimed at strengthening the rights of expatriate workers, President Dr. Mohamed Muizzu has ratified the Eighth Amendment to the Employment Act, introducing significant penalties for employers who neglect the welfare of their foreign employees. This move, following the Parliament’s approval on August 19, highlights the Maldives' commitment to ensuring fair treatment and better working conditions for expatriates.
New Penalties for Employers
The new amendment sets a hefty fine of MVR 50,000 for every instance where employers fail to meet their obligations toward expatriate workers. This includes issues like unpaid wages, substandard working conditions, and violations of employment contracts. The fine is intended to hold companies accountable for ensuring that foreign workers receive the rights and benefits they are entitled to under the law.
Regulating the Expatriate Workforce
Beyond financial penalties, the amendment gives the Maldivian government greater control over the number of expatriate workers allowed in the country. While the previous cap of 100,000 workers per country remains, the amendment empowers the Cabinet to take action if this limit is exceeded. In such cases, the government is authorized to repatriate workers to bring the numbers back within legal limits.
The amendment also introduces a structured system for determining the number and types of expatriate workers allowed into the Maldives, based on industry demands and skill requirements. Detailed regulations, set to be drafted within the next three months, will define quotas for each sector, ensuring that the expatriate workforce aligns with the country’s economic needs.
Stricter Requirements for Hiring Expatriates
Employers who wish to hire expatriate workers will now face more stringent requirements. The amendment lays out several steps that must be followed before an employer can bring in foreign employees:
- Registering the worksite where expatriates will be employed.
- Obtaining all necessary permits for employment.
- Securing a specific quota for hiring foreign workers.
- Ensuring proper work permits are in place for each expatriate.
Failure to meet these requirements could result in the MVR 50,000 fine, along with potential additional penalties, depending on the severity of the violation.
What’s Next for Employers?
With the amendment now ratified, the Maldivian government has a three-month window to publish the detailed regulations that will govern its implementation. These regulations will clarify how the amendment will be enforced and what employers need to do to stay compliant.
For businesses operating in the Maldives, this amendment signals a clear message: protecting the rights of expatriate workers is now a priority. Companies will need to review their employment practices and ensure that they meet the new, stricter standards set forth by the government.
A Step Toward Fair Treatment
This amendment is a step toward improving the treatment of expatriate workers in the Maldives. By imposing heavy fines and introducing strict regulations, the government is sending a strong message that mistreatment of foreign workers will not be tolerated.
As the new regulations are rolled out, employers will need to adapt their practices to avoid penalties and ensure that the rights and welfare of their expatriate employees are protected.
This decisive action by President Muizzu showcases the Maldives' commitment to building a fair and just working environment for all, ensuring that expatriate workers are treated with dignity and respect.