Parliament has approved amendments to the Employment Act that allow the government to exempt Micro, Small and Medium Enterprises (MSMEs) from paying quota fees when recruiting expatriate workers, a move aimed at supporting the growth and competitiveness of smaller businesses.
The amendment, submitted by the government and sponsored by Madaveli MP Mohamed Shameez, was passed unanimously with 62 votes in favour during yesterday’s parliamentary sitting.
Under the amendment, a new provision has been introduced empowering the cabinet to grant exemptions from expatriate quota fees for employers operating in certain fields of trade. The decision to grant such exemptions must be based on several policy considerations set out in the amendment.
These include creating greater opportunities for MSMEs, expanding their role in the economy, and increasing employment prospects within smaller businesses. The cabinet must also consider measures that help eliminate structural differences between MSMEs and larger companies.
Additional factors include encouraging innovation, improving productivity, promoting the development of new products through competitiveness, and raising the overall quality of businesses operating in the country.
In addition to the quota fee policy, Parliament also approved other changes to the Employment Act proposed by the government. These include amendments to the notice period required for the termination of employment.
Another provision introduced under the amendments allows government employees with children under the age of two to take two half-hour daily breaks without any reduction in salary.
All amendments proposed under the bill were passed during Sunday’s parliamentary session.
The changes form part of broader efforts by the government to adjust labour policies and support the development of MSMEs, which are widely regarded as an important component of economic diversification and employment creation in the Maldives.
