Service charges to be distributed equally among employees

A Joint Parliamentary Committee formed by the Committee on Social Affairs and the Economic Committee has passed to collect at least 10 percent as service charge from services provided in the tourism industry.

The amendments proposed to the Employment Act are by MP for Kendhikulhudhoo Ahmed Easa. Some changes were observed from the original bill when the Committee finalized it. 

Service charges are to be distributed among employees if such a charge is collected by the establishment. Service charges are made mandatory under a previous amendment to the bill by the Committee. 

Service charges are to be distributed among employees equally. The service charge of a month is to be provided to the employee before the end of the following month. 

An administrative fee of no more than one percent is to be collected by the establishments.

Violations of the amendments would see a fine of no more than MVR 100,000. Labor Relations Authority is permitted to take action against such establishments in violation.

Records of the service charge income are to be maintained by the businesses and shared with the Labor Relations Authority and Maldives Inland Revenue Authority twice every year. If requested on an unscheduled date, the establishments will still have to provide the records.

Failure to provide the documents could see a fine of MVR 50,000. A vote on the amendments will be heard on Monday in the Parliament.