New Regulations for Overseas Employees Introduced

[this article touches on employment law –  overseas employees –  regulatory framework – new requirements – change in law]

The government has launched an entirely new set of regulations on the employment of overseas nationals in the Maldives.

The new regulations were published on 31 January 2021 by the name of Regulations on Employment of Foreigners in the Maldives. The citation is Regulations Number: 2021/R-16. They come into effect on 15 February 2021.

A policy decision of the government can have consequences for businesses – in the sense – it can either increase or decrease costs associated with the running of a business – either in the form of direct costs or indirect costs.

A direct cost would be additional taxes, fees and charges. An indirect cost would be the cost of compliance with enhanced obligations.

On 22 September 2020, the president signed into law the sixth amendment to the employment law of the country. The citation is Employment (Sixth Amendment) Act 2020 [Law Number: 22/2020].

These new regulations aimed at overseas employees in the Maldives are made under section 65 of the revised Employment Act.

Designed to provide a standalone regulatory framework for overseas employees, the regulations run into some 90 pages containing 27 pages of regulations proper and 10 separate schedules with more detailed guidance on selected matters.

Some key areas include guidance on registering with the online x-pat system, grant of quotas, collection of quota fees, grant of entry passes and work permits to enter and remain in the country for work, deposits and refunds, accommodation arrangements and standards, regularization and penalties for breaches.

Our Guide

We have prepared a Guide to unpack key elements of the Regulations and provide an overview of the regulatory framework envisaged by this new policy change. You may kindly view our guide here.

In case you have any specific requests, you may please contact us.



Photo: Courtesy Mihaaru