Labor Relations Authority has announced the cases of dismissal, wage alteration and no pay leaves imposed on employees by several employers due to the economic impact of COVID-19 was carried out against the Employment Act.
Due to the COVID-19 pandemic the administration placed several travel restriction decreasing the percentage of tourist arrival in Maldives. Furthermore, the President Ibrahim Mohamed Solih announced the suspension of issuing on arrival visa to all foreign nationals adding all resorts are estimated to be closed after a two week period. In this regard, several resort employers imposed no pay leave and wage alterations before sending employees home.
A post published on Facebook by Tourism Employers Association Maldives (TEAM) on Saturday revealed over 11,000 resort employees are being sent home on no-pay leaves. The association also revealed the name of the 58 resort sending their employees home on no-pay leave and resorts that imposed wage alterations. TEAM further stated it is unacceptable that so many resort employees are being sent home on no-pay leave during such a time like this. In reference to the cases, Labor Relations Authority announced the following were carried out against the Employment Act.
Additionally, the authority stated the stimulus package introduced by the administration would only be prioritised to employers who refine from dismissing employees and imposing wage alterations and pay cuts during the COVID-19 pandemic. The authority advised all employers to follow the Employment Act and to communicate with the authority before making any decisions relating to employment status.
Moreover, the authority requested all employees to contact the authority if any action against the employment act were implemented by the employers since March 1. The authority stated the employees are requested to file a form available on the authority’s website before April 1, 1200hrs.
