President ratifies legislature to tighten regulations related to expat recruitment

President Dr. Mohamed Muizzu has ratified a recent amendment to the Employment Act which tightens regulations related to the recruitment of expatriate workers.

The legislature, sponsored by North Kulhudhuffushi MP Mohamed Daud, was passed by the Parliament on August 19.

It was ratified on Sunday.

The legislature states that foreigners are only permitted to work in the Maldives if they have acquired authorization in accordance with the Employment Act and its related regulations. It also outlines the penalties for not complying with these requirements.

But certain foreign parties are exempt from this. This includes:

• Individuals with diplomatic immunity
• Foreigners working in the Maldives under an international convention or agreement the Maldives is party to
• Foreigners permitted to work in the Maldives under a different type of visa other than work visa
• Other foreigners exempt under any other law

The legislature specifies the maximum number of foreigners allowed and identifies the specific sectors or areas where they are permitted to work.

The law previously required that the number of unskilled workers from each source country be capped at 100,000.

However, the new legislature empowers the cabinet to set quotas for recruitment of labor from individual countries, and the specific sectors or areas they are permitted to work on a biannual basis.

The new amendment details the obligations imposed on employers for the recruitment of foreigners in the Maldives. This includes the registration of the workplace where the foreigners will be employed, the acquisition of necessary permissions, securing the appropriate quota for foreigners, and obtaining a valid work permit.

The amendment also specifies the procedures for addressing violations by those found to exhibit insensitivity towards foreigners.

Offending employers can be penalized by publicizing information of offending employers, fining them by MVR 50,000 and suspending their permit to recruit expatriate workers.

The law current prescribes an annual quota fee of MVR 2,000 and a fee of MVR 350 for work permits for expatriate workers.

Both fees must be paid by employers.

The new amendment introduces provisions that allow the government the option of reviewing the fee rates every 18 months. It also states that the revised rates must be capped at 30 percent of the existing rates.

Upon the ratification of the legislature, amendments to the regulations formulated under the Act needs to be drafted and published in the Government Gazette within three months.