October 2020 – COVID-19 Special Measures Act

EMPLOYMENT BULLETIN

REGULATORY UPDATE: COVID-19 SPECIAL MEASURES ACT (EMPLOYMENT PROVISIONS)

INTRODUCTION

The Government of the Republic of Maldives has ratified the ‘COVID-19 Special Measures Act’ (the “Act”) on 22nd September 2020, containing special measures to, inter alia, provide assistance and protections for individuals, families and businesses during the state of public health emergency due to COVID-19.

A copy of the Act (in Dhivehi language) is available at https://gazette.gov.mv/

This bulletin highlights and summarises the salient provisions of the Act related to employment matters.

PART 1: PURPOSES OF THE ACT

  • To provide special leave allowances for persons unable to resume employment duties due to COVID-19 public health emergency.
  • To ensure employment status is not altered due to COVID-19 except under exceptional circumstances.
  • To provide assistance for families facing hardship due to COVID-19.
  • To provide temporary housing for displaced persons due to COVID-19.
  • To ensure continuity of state functions during the public health emergency period.

PART 2: SPECIAL LEAVE PROVISIONS

Special Leave for Employees in Quarantine

  • Applies to employees required to be quarantined in home or isolation facilities during COVID-19.
  • Must be supported by official documentation from the Director General of Public Health.
  • Employees shall receive full salary during quarantine without need for medical certificate.

Special Leave for Employees Unable to Report to Work Due to Travel Restrictions

  • Applies where employees are unable to return to their home island due to public health orders.
  • Employees shall receive full salary for the duration of travel restrictions.

Medical Leave for Employees Who Test Positive for COVID-19

  • Applies to employees who test positive and are placed in isolation or medical care.
  • Employees shall receive full salary during isolation or treatment period.

Family Responsibility Leave

  • Applies where an employee must care for a family member with COVID-19.
  • Employees shall receive full salary during the care period.
  • Proof of isolation order issued by health authorities is required.

Special Leave and Existing Entitlements

  • Special leave under this Act does not affect existing leave entitlements under the Employment Act (Law No. 2/2008).

PART 3: EMPLOYMENT RESTRICTIONS AND EXCEPTIONS

Restricted Actions

  • Reduction of wages or deferment of salary payments.
  • Placement of employees on unpaid leave.
  • Termination of employees.

Special Exceptional Circumstances

Reduction of Wages

  • Permitted only where the employer’s business is adversely affected by COVID-19.
  • Must result in inability to maintain existing salary obligations.

Wage Reduction and No-Pay Leave

  • Must be agreed upon with employees after consultation.

Termination of Employees

  • Permitted where COVID-19 causes financial distress requiring restructuring.
  • Employer must notify employees of redundancy decision and policy.
  • Employees must receive statutory notice or payment in lieu of notice.

CONCLUDING REMARKS

This Act introduces temporary protections and restrictions during the COVID-19 emergency period, balancing employee protection with limited employer flexibility under strict conditions.

SHC Lawyers LLP

This document is a general guide and does not constitute legal advice.

No responsibility is accepted for reliance on this material.

For further information, please contact SHC Lawyers LLP.

Cover photo by Joel Filipe on Unsplash.

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