January 2024 – SHC Regulatory Bulletin – Occupational Safety and Health Act

Introduction

The Occupational Safety and Health Act has been ratified by the President and published on the Government Gazette on 2nd January 2024. The Act mandates strict safety standards, preventive measures, non-compliance penalties, and a formal compensation framework for employers to implement across the Maldives.

The provisions of the Act place general and specific obligations on work site managers/employers, persons at work, and manufacturers/suppliers of dangerous substances to minimize risks attributable to the workplace and the execution of duties.

Key Compliance Timelines:

Effective Date: 2 April 2024
Subordinate Regulations Due: Before 2 October 2024
Full Compliance Deadline: 2 January 2025

Overview of the Framework

Scope: Who is this Act for?

  • Employer: Any person or entity who engages an individual to work under an employment contract. This explicitly includes entities utilizing the services of non-independent contractors.
  • Persons at Work: Individuals who have entered into an employment agreement providing services, or who are actively performing services.
  • Work Site Manager: A person (regardless of whether they own the site) who controls a work site directly or under instructions from a third party.

Rights of Persons at Work

Employees are granted statutory protections under the Act, confirming that they:

  • Must not be forced to undertake work that poses an immediate risk to their health and safety.
  • Have a right to proper machinery, safety equipment, and appropriate protective attire required to perform work safely.
  • Are entitled to targeted training and education regarding workplace safety measures.
  • Are entitled to medical treatment at no personal cost for workplace-incurred injuries.
  • Or their lawful heirs, may claim structural compensation for temporary/permanent disability or loss of life.

Employer’s General Duties

Employers hold a primary duty of care to ensure, so far as is reasonably practicable, the health, safety, and welfare of all employees as well as third parties affected by the business operations. This must be structurally discharged through:

  • The provisioning and upkeep of formal health and safety management systems in the workplace.
  • Maintaining plant machinery and workflows in a safe condition.
  • Providing clear information, training, instructions, and supervision to staff.
  • Enacting, executing, and regularly reviewing a dedicated Workplace Health and Safety Policy.
  • Ensuring proper procedures for the safe use, handling, storage, and transport of physical articles and hazardous substances.
  • Implementing an Emergency Response Policy mapped out alongside guidelines specified under the Act.

Key Operational Mandates

Health & Safety Policy Mandatory TriggerIt is legally mandatory to enact and maintain a workplace health and safety policy for operations exceeding a specified threshold of employees Criteria Pending Regulations.

Health & Safety Officer RequirementIt is legally mandatory to formally appoint a dedicated Health and Safety Officer for any workplace exceeding 75 (seventy-five) employees.

Workplace Manager’s Specific Duties

  • Ensure the surrounding environment, machinery, equipment, or plant plants do not present a threat of harm or damage to persons at work.
  • Mandatory Reporting: In the event of a workplace accident, managers hold an explicit obligation to report the incident directly to authorities. Failure to meet these duties carries an administrative penalty of MVR 5,000.
  • Supply Chain Duty: Suppliers providing machinery or hazardous chemicals must adhere to rules ensuring safety safeguards accompany products. Assembly, modifications, and testing of specialized equipment must be handled exclusively by authorized, certified professionals.

Accident Reporting & Investigations

Employers and workplace managers are legally responsible for reporting any accident, occupational disease, or physical harm occurring on-site to the Director General of the Workplace Safety and Health Advisory Council. The Director General holds full statutory rights to carry out formal field investigations depending on the nature of the reported risk.

Compensation Framework

A worker may claim structural compensation for injuries, disability, or death occurring on a domestic site or while traveling abroad on a corporate business trip. Covered liabilities include medical billing, work absence due to injuries, permanent/temporary disability, and loss of life.

Statutory Exemptions to Employer Liability

Employers are strictly exempted from paying out compensation if an accident or injury arises from:

  1. Self-inflicted harm or intentional injuries.
  2. Incidents occurring while under the influence of alcohol or narcotics/drugs taken without a valid physician’s prescription.
  3. Accidents occurring during a commute to or from work when utilizing the person’s own personal vehicle.
  4. Any personal/leisure excursions taken independently during an official work trip.

Note: The Act stipulates that if an employee has been fairly compensated under this framework, they are restricted from filing separate lawsuits against the employer or pursuing further alternative legal remedies.

© 2024 SHC Law & Tax LLP. All rights reserved. The contents of this document are intended as a general framework guide on the subject matter and should not serve as a substitute for obtaining explicit, specific legal counsel. While every care has been taken with the compilation of this document, neither SHC Law & Tax LLP nor the authors accept responsibilities for losses occasioned by reliance on these contents.

 

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