Labor law in Maldives

The Employment Act (Law No. 2/2008), the Industrial Relations Act (Law No. 1/2024) and the Occupational Safety and Health Act (Law No. 2/2024) form the main framework for employment in Maldives. The ninth amendment to the Employment Act, Act No. 2/2026, is in force. The framework covers state and private employment, but members of the armed forces and police fall under the Armed Forces Act and Police Act. An employer must give each employee a signed written employment agreement and a copy of it. The agreement identifies the parties, employment status, start date, remuneration and benefits, salary calculation, pay day and leave. An employer usually provides a job description within one month. A fixed-term agreement may last up to two years; work that continues as a permanent job is generally treated as indefinite employment. Probation may last up to three months, during which either side may end the employment without notice. On-the-job training may last up to six months, must provide at least 70% of the relevant wage and cannot charge the trainee a fee. Normal working time may not exceed 48 hours per week. After no more than six consecutive working days, an employee is entitled to at least 24 hours of rest. Resorts, tourist vessels and uninhabited industrial islands may accumulate rest days under special arrangements, with up to two additional working hours per day paid as overtime. Work lasting more than five hours requires at least a 30-minute meal break. Employees receive a 15-minute prayer break for each prayer time or a 15-minute break after each four-hour period. They may leave the worksite, island or vessel after working hours. Overtime should be agreed in the employment arrangement and is paid at 1.25 times the normal hourly rate, or 1.5 times that rate on Fridays and public holidays. International Labour Day is a public holiday for overtime purposes. Employers normally pay wages at least monthly; temporary workers are generally paid daily. A wage statement or wage register records the payment. Deductions are allowed only under law, by court order or with the employee's written consent, and certain deductions may not exceed one third of the wage. The employer must make the final payment within seven days after dismissal or expiry of employment. The Minimum Wage Order 2021 sets hourly rates from MVR 21.63 to MVR 38.46 depending on employer category, with separate rules for public employment and permanent public employees working at least 30 hours per week. Micro enterprises are exempt. The order specifies rates for non- expatriate workers; the current ILO country brief reviewed for this framework reports no statutory minimum wage for expatriate workers. Tourism service charge paid to contributing employees must be distributed by the end of the following month, with an administrative deduction capped at 1%. Employers must provide the relevant service-charge data to the Labour Relations Authority and Maldives Inland Revenue Authority twice a year. Maldivian employees receive an MVR 3,000 Ramadan allowance before Ramadan. After one year of service, an employee receives 30 paid annual-leave days. Sick leave is at least 30 paid days per year; a medical certificate is not required for up to 15 days when the absence lasts no more than two consecutive days. Maternity leave lasts 60 days, with up to 30 days before birth, and salary and employment rights remain protected. A further 28 days may be available for medical reasons. The employee generally returns to the same position. A mother or father may take up to one year of unpaid leave. Parents receive two 30-minute childcare breaks until the child reaches two years of age. Family-responsibility leave is 10 paid days per year, paternity leave is three days and circumcision leave is five days. Employers must provide a safe workplace, safe tools and materials, protective equipment, training, checks, medical care and first aid without charging employees. An employee may refuse to continue work where a serious hazard exists. A workplace death or injury requiring more than first aid must be reported within 48 hours. Employees may register or join a workers' union without prior approval, or choose not to join one. The Registrar of Unions handles registration. Employee and employer unions may engage in collective bargaining and industrial-dispute procedures. Lawful union membership and activity receive protection against dismissal, although institutional enforcement is still developing. The Labour Relations Authority, known as the LRA, handles inspections, investigations, mediation and workplace awareness. It may inspect without notice, review records, interview people and issue orders. A complaint to the LRA protects the complainant's identity from the employer. The Employment Tribunal, known as the ET, deals with dismissal, pay, discrimination, contract, and disciplinary disputes. A dismissal complaint generally must reach the ET within three months. The employer has to show a reasonable cause for dismissal. Possible remedies include reinstatement, an equivalent position, compensation and further damages. A dispute on an island may begin in the local Magistrate Court before referral to the ET. An ET decision is final and binding, subject to a High Court appeal within 60 days in the statutory exceptional cases. The court enforces the decision, and ET forms are available online. An employer may not dismiss an employee without reasonable cause. Prohibited reasons include pregnancy, exercising a statutory right, illness or injury, refusing unsafe work, lawful union activity and filing a complaint. Disciplinary measures can include counselling, a written caution, suspension for up to 14 days or demotion. After probation, notice is two weeks for employment of less than one year, one month for more than one year but less than five years, and two months after more than five years. Notice must be written, and leave days do not count toward the notice period. Payment instead of notice is permitted. Redundancy notice or payment is one month for service of less than one year, two months for one to four years and three months after more than four years. The current amendment requires notice from both employer and employee, allows employee payment in lieu, and permits leave blocks during notice. A fixed-term agreement normally ends on expiry without further notice.