Parliament passes amendment to exempt MSMEs from paying quota fee

The Parliament on Sunday passed an amendment submitted by the government to the Employment Act, designed to create a policy that allows Micro, Small and Medium Enterprises (MSMEs) exemption from paying quota fees for recruiting expatriate workers.

The bill, sponsored by Madaveli MP Mohamed Shameez, was passed as is by the Parliament with a unanimous vote of 62 on Sunday.

It adds a provision that empowers the cabinet to exempt employers engaged in certain fields of trade from paying quota fees. It stipulates that the cabinet must consider certain factors when granting exemptions. They are:

• Creating opportunities for MSMEs
• Expanding the role of such businesses in the economy
• Boosting employment opportunities in such businesses
• Eliminate differences between MSMEs and larger businesses
• Encouraging innovation, productivity and new products through competitiveness
• Improving the quality of businesses

Other key amendments proposed by the government to the Employment Act includes changes to the notice period for termination of employment, and two half-hour daily breaks for government employees with children under the age of two, without any pay cuts.

These amendments were also passed by the Parliament on Sunday.