MALDIVES LAW AND PRACTICE Contributed by: Shaaheen Hameed, Hassan Maaz Shareef, Aminath Amathulla, Nazahath Ahmed, Isha Ali Raoof, Aifa Shareef, Noorul Hudha Ahmed and Mohamed Azmee, 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 employ - ment contract that prevents or impedes any rights or benefits conferred to an employee by The recently enacted Industrial Relations Act allows for trade unions to initiate collective bar - gaining with employers by appointing represent - atives. Collective agreements reached after the collective bargaining must be registered with the director general of industrial relations and the terms of the agreements are binding on the par - ties to the agreements and are legally enforce - able. 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 certain provisions have to be included in the employment contract. Types of Employment Contracts Employers in the Maldives may enter into any of these types of employment contract: • indefinite term contract; • definite term contract; and • work-based or project-based contract. Duration of Employment Contracts the Employment Act will be void. Collective Bargaining Agreements The duration of a definite term employment con - tract 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 considered from the actions of both parties that a renewal or exten - sion has occurred it will be considered an indefi - nite term employment contract. An employment contract of definite term or spe - cific 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 car - rying out duties and responsibilities which are usually and normally carried out at the place of work on a permanent basis. 4.3 Working Time Working Hours An employee’s normal working hours must not exceed 48 hours a week. The normal working hours do not include any overtime an employee works. The Employment Act specifies particular categories of employees exempt from the nor - mal working hour limitations. Employees employed in specific sectors speci - fied in the Employment Act may have to work two additional hours a day beyond the nor- mal working hours limitation (as outlined in the employment agreement) provided they are com - pensated for the additional hours as overtime. There is no limitation on the maximum number of hours an employee may have to work a day. However the minister designated to oversee the implementation of the Employment Act has the discretion to formulate a regulation that imposes a maximum number of hours an employee may have to work a day. As of now, no such regula - tion has been formulated. The general rule is that employers are prohib - ited from requiring an employee to work for more
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