Labour Relations Authority of Maldives (LRA) has stated cases of dismissal, wage alterations and no pay leaves imposed on employees by several employers due to the economic impact of COVID-19 have been carried out against the Employment Act.
An announcement from the authority said the matter has come to the attention of LRA and other government institutions and they go against the Employment Act. The statement further said the authority has investigated such complaints and found the decision on dismissals, wage alterations and no-pay leaves have been made without considering the clauses of the act.
LRA additionally stated the government has decided to introduce a stimulus package of financial aid to reduce the impact for businesses, and support employers face the challenges arising from the economic impact of COVID-19, stating priority will be given to employers who refrain from dismissing employees during this time and adhere to the Employment Act. It also called employers to respect the rights of the employees.
Moreover, it has called on all employers to consult LRA before rushing into amending agreements and making decisions on dismissal, wage reductions and no-pay leaves. Employers have been instructed to report to LRA before April 15, of any changes brought to the employment agreement after March 1.
The government of Maldives has decided to introduce various stimulus packages, including deferment of loan payments, loan schemes for fishermen, farmers and small and medium enterprises, to better brace the impact of COVID-19.