The government has introduced a proposed amendment to the Employment Act that would allow Micro, Small and Medium Enterprises to be exempted from paying quota fees when recruiting expatriate workers.
The bill, sponsored by Madaveli MP Mohamed Shameez, was presented for its first reading in Parliament today. It seeks to authorise the cabinet to grant exemptions to employers operating in specific sectors.
Under the proposal, the cabinet would be required to consider a set of criteria before granting any exemption. These include creating opportunities for MSMEs, expanding their contribution to the economy, increasing employment within such businesses, and addressing disparities between smaller enterprises and larger firms. The amendment also refers to encouraging innovation, improving productivity, supporting the development of new products through competition, and enhancing overall business quality.
If adopted, the change could reduce operational costs for smaller enterprises that rely on expatriate labour, particularly in sectors where local workforce availability is limited. Quota fees have long been viewed by some businesses as a financial burden, especially for firms operating on tighter margins.
The proposed amendment also includes revisions to notice periods for termination of employment, although specific details have yet to be debated. In addition, the bill introduces a provision granting government employees with children under the age of two two daily breaks of 30 minutes each, without any reduction in salary.
The bill will now proceed through the parliamentary process for further debate and committee review.
