Labor Relations: No-pay, pay cuts in response to COVID-19 pandemic is a violation of law

Labor Relations Authority, on Sunday, issued a statement confirming it has received multiple complaints over dismissals, pay alterations and no-pay leaves imposed in response to the economic impact of the coronavirus pandemic.

A number of the aforementioned actions taken by employers have been carried out against the Employment Act, it warned.

It has instructed employers to communicate with the authority before making decisions related to the employment status of employees, and not to take any action which violate the Employment Act.

Employers who have taken any such action since March 1 have been instructed to fill the form available on the authority’s website, or email the authority at [email protected] before 12:00 hours on April 15.

The Maldivian government has announced an economic stimulus package of MVR 2.5 billion to assist businesses recover from the economic downfall of the pandemic.

LRA has warned that priority in granting the aid will be given to employers who refrain from dismissing employees during the current crisis, and abide by the rights granted to employees under the Employment Act.

Tourism Employees Association of Maldives (TEAM), a non-profit which advocates for the rights of resort workers recently announced that some 11,000 resort workers have been forced to accept no-pay leave by their employers amid the economic impact of the COVID-19 pandemic.