Act introducing up to MVR 50,000 fine for unlawful strikes ratified

President Dr. Mohamed Muizzu, on Tuesday, ratified the Industrial Relations Act which introduces a fine of up to MVR 50,000 for unlawful strikes carried out by trade unions.

The parliament passed the Act at the 37^th sitting of its third session last year held on December 18^th.

The Act outlines activities promoting the exercise of constitutional rights, such as the right to form trade unions and to participate in or abstain from their activities, and the parameters of such rights. 

It also introduces a fine between MVR 5,000 and MVR 50,000 if found culpable of having carried out, participated, or encouraged an industrial action such as a strike in violation of the parameters of the Act.

The Act specifies the procedures for creating employee and employer trade unions, the procedures for resolving disputes between employers and employees, and other trade union-related details.

Furthermore, it states that the President is obligated to designate an individual to serve as a Registrar of Unions within thirty days of the date of ratification, who will manage and maintain employee and employer trade union registration, enforces legal and regulatory measures against unions that breach laws and regulations, and fulfills all other responsibilities imposed on the registerer underscored in the Act.

As per the Act, any employee and employer trade union registered under any other law or regulation must submit an application to the Registrar of Unions under the new law within three months of ratification.

Within this period, the Act states an eight-member Tripartite Advisory Board should be constituted while the Employment Tribunal must create a new division called the Industrial Dispute Resolution Division.

Upon ratification, the Act has been published in the Government Gazette. It will come into force after three months.