Government to Amend Employment Act, Maintain Cap on Expatriate Workers

The Maldivian government, led by the Minister of Homeland Security and Technology Ali Ihusaan, has announced plans to retain a cap on the number of expatriate workers, while also introducing amendments to the Employment Act to provide greater flexibility in determining the maximum number of expatriates allowed in the country.

Under the current Employment Act, the Maldives enforces a limit of 100,000 expatriate workers from any single country. Should this number be exceeded, the act mandates a reduction in the total number of expatriates from that country. However, a recent amendment proposal aims to regulate the number of expatriates and the specific fields they can work in through guidelines under the Employment Act, following advice from the Cabinet on the impact on the local labour market.

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Minister Ihusaan underscored the varying demand for expatriate workers, particularly with the advent of significant development projects such as the reclamation of RasMale’, Gulhi Falhu, Thilafushi, and Uthuru Thila Falhu, along with the new terminal at Velana International Airport (VIA) and new resort constructions. The minister highlighted that the local labour market lacks sufficient willing labourers to meet the demands of these projects, thereby necessitating foreign labour.

“The government’s stand is to ensure that all foreign workers are brought within the legal framework and that the total number is adjusted based on the labour demand at any given time, whether it be 100,000, 110,000 or 120,000 expatriates,” Ihusaan stated. This approach aims to address the rise in undocumented workers and expatriates working in unauthorised employment sectors.

Previously, the government halted the influx of Bangladeshi workers after their numbers exceeded the 100,000 cap, opting instead to bring in workers from India. This decision has since been reversed, permitting Bangladeshi workers to enter the country once again.

Minister Ihusaan emphasised that the ultimate goal is to ensure that expatriate workers comply with Maldivian laws and to reassess the effectiveness of the current 100,000 limit once these regulatory measures are in place.

This move signifies the government’s effort to balance the economic benefits of foreign labour with the necessity of maintaining a manageable and legal expatriate workforce, particularly in light of the country’s ongoing and upcoming development projects. The amendments to the Employment Act will likely play a crucial role in shaping the future dynamics of the Maldivian labour market.

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