MALDIVES Law and Practice Contributed by: Hassan Maaz Shareef, Aminath Amathulla, Aishath Shifala, Mohamed Azmee, Nazahath Ahmed, Maaisha Mohamed Musthafa, Aifa Shareef and Noorul Hudha Ahmed, Premier Chambers LLP
Employment Contract The Employment Act requires the execution of an employment contract between the employer and employee. The employer may grant the rights to a greater extent than provided for in the Employment Act. Any provision in the employment contract that prevents or impedes any rights or benefits conferred to an employee by the Employment Act will be void. Collective Bargaining Agreements The recently enacted Industrial Relations Act allows for trade unions to initiate collective bargaining with employers by appointing representatives. Collective agreements reached after the collective bargain - ing must be registered with the Director General of Industrial Relations and the terms of the agreements are binding on the parties to the agreements and are legally enforceable. 4.2 Characteristics of Employment Contracts Form of Employment Contracts Maldivian law requires a written employment contract to be executed between employers and employees. The Employment Act stipulates that certain provisions must be included in the employment contract. Types of Employment Contracts Employers in the Maldives may enter into any of these types of employment contracts: • indefinite term contract; • definite term contract; and • work-based or project-based contract. Duration of Employment Contracts The duration of a definite-term employment contract will not exceed a maximum period of two years. If a definite term contract is extended so that the total duration of employment is more than two years or if it can be implied from the actions of both parties that a renewal or extension has occurred, it will be consid - ered as an indefinite term employment contract. An employment contract of definite term or specific to a certain type of work is also considered an indefinite term employment contract if the objective or result of the employment agreement is such that the employee has to continue carrying out duties and responsibili -
ed from the Act by any other statute and the police, armed forces and Presidential appointees. • The Occupational Safety and Health Act of the Maldives (Law 2/2024) (the “Occupational Safety and Health Act”). This Act provides for matters relating to safeguarding workplaces and workers and employee health and safety. The Act provides that, except for the parties exempted from the Act by any other statute, it applies to both public- and private-sector employees, employers and inde - pendent contractors. • The Prevention of Sexual Abuse and Harassment Act (Law 16/2014). This Act outlines what con - stitutes sexual abuse and harassment and the responsibilities of employers in preventing these acts in the workplace. Regulations There are regulations enacted in line with the Employ - ment Act which have legal force. They provide more details regarding specific matters. The regulations currently in force are as follows. • General Regulation on Employment (Regulation 2021/R-63). This provides details on employees’ redundancy, working hours and overtime, as well as salary and wages. • Expatriate Employment Regulation (Regulation 2025/R-120). This provides details relating to the employment of expatriates. • Employment Agency Regulation (Regulation 2022/ R-63). This provides details relating to employment agencies. • Service Charge Regulation (Regulation 2021/R-41). This provides details on the collection of a service charge from businesses and its distribution among employees. Precedents The precedents set by higher courts in the Maldives relating to employment cases are considered the authority for deciding subsequent cases with similar facts. They also play a key role in determining the relevant employment relationship rules when the law or regulations are silent on the issue.
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