INTRODUCTION
The President of Maldives has enacted the Industrial Relations Act on 2nd January 2024 which address the mechanisms on resolving disputes between the employees and employers.
The Act shall come into force within 3 months from the date of publication. A copy of the Act is available on: https://gazette.gov.mv/gazette/6930
The Regulation on Resolving Disputes between Employers and Employees (Regulation R-12/2011) is effectively repealed following the enactment of the Act.
FOREWORD
Though the Maldives Constitution guarantees workers the fundamental right to strike (Article 31), there was a lack of legislation providing for establishment of workers unions and industrial relations in general.
Several industry-specific ‘rights groups’ have been registered as non-government organisations/ associations in recent years, in the absence of a mechanism to register as a formal workers union.
The new Industrial Relations Act seeks to address these gaps and provide framework for registration of unions and mechanisms for resolving disputes between employers and employees.
Overview of Key Regulatory Matters
General Matters
- Expands on the fundamental right to strike/ take industrial action as guaranteed under the Maldives Constitution.
- Provides for detailed and tiered framework for mediation between workers and employers, with escalation measures.
- Creates the new position of ‘Registrar of Unions’.
- The Labour Relations Authority shall act as the regulatory body of the unions.
On Unions
| “Union” | Any union that is registered as the following:
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| Registration of Unions | The registration of workers trade unions shall be satisfied with 7 signatures. An employers union shall be registered with a minimum of 3 signatures in addition to the requisite forms and supporting documents.
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| Union Privileges | Civil lawsuits against unions are not allowed to the extent it is in exercise of/ protection of rights of its members in line with the Act. Notwithstanding the above, if a targeted action has been taken by a union to:
a party may be allowed to initiate a civil suit against the union. |
| Industrial Action/ Strike | A union may only carry out industrial action / execute a strike affecting all or some members only after a majority of members approve such industrial action by way of secret ballot. |
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| Restrictions on Employers | Employers are generally prohibited from:
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| National Centers |
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On Industrial Relations
| Industrial Relations | The Act states that a Director General of Industrial Relations is to be appointed within 3 months of the effective date of the Act to perform the following functions:
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On Collective Bargaining
| Process of Collective Bargaining | A trade union may invite an employer/ employers’ union for collective bargaining by nominating a representative for the process. The invitation shall also include a proposal on:
An employer/ employers’ union must respond to the collective bargaining proposal within 15 (fifteen) days. If the collective bargaining discussion has not commenced within 30 (thirty) days of the invitation, the inviting party may escalate the matter to the Director General of Industrial Relations. Conciliation procedures (as stipulated in the Act) will commence thereafter. |
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| Process of Collective Bargaining (Cont.) | Once a collective agreement is reached between paties, the same must be registered with the Director General of Industrial Relations within 21 (twenty one) days. |
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| Form of Collective Agreement | Subordinate regulations are to be issued on form and content of the collective agreement and its performance. |
On Industrial Action
| Industrial Action | ‘Industrial actions’ are deemed to be carrying out one or more of the following actions carried out within the scope of the Act:
Actions or promotion of an action in the form of intimidation in relation to a dispute between an employer and employee, or to induce fear to stop the actions of a party trying to secure the rights granted under the Act are strictly prohibited. Industrial actions taken under this Act shall be peaceful strikes that does not cause bodily harm and/or damage the property of any person. |
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| Picketing | As an industrial action or a related reason, guarding and restricting the entry of employees into the place of employment without any legal cause is prohibited under this Act. |
| Notice before Industrial Action | Employees must provide at least 48 (forty eight) hours prior notice prior to taking any industrial action. |
| Prohibition of Industrial Action | Industrial Actions are prohibited under the following circumstances:
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