Maldivian employers, particularly those in the resort and hospitality sector, face a looming deadline to comply with new workforce localisation rules. Under the Sixth Amendment to the Employment Act (Law No. 22/2020), the five-year transition period granted to businesses will expire on 22 September 2025, after which several key provisions will become fully enforceable.
The law requires that in any workplace with more than 50 employees, the head of human resources must be a Maldivian national. In addition, at least 60 percent of senior management positions in such organisations must be held by Maldivians. Employers are also mandated to submit annual workforce composition reports to the Labour Relations Authority, with this information made public. Further, the law obliges companies to ensure fair employment opportunities for qualified individuals aged 55 to 65, and provides for fines of up to MVR 100,000 for non-compliance.
Supporters of the changes argue that the localisation policy will create more leadership opportunities for Maldivians, strengthen succession planning, and reduce reliance on expatriates in critical decision-making roles. They note that a number of international hospitality brands operating in the Maldives have already met the criteria by appointing Maldivians as HR heads and increasing local representation at the management level.
However, concerns remain that some resorts continue to retain expatriates in top HR roles and have yet to achieve the required 60 percent Maldivian representation in senior management. With the deadline only weeks away, calls have been made for strict enforcement to ensure compliance across the industry.
