Gasim warns against resort service charge in MVR without staff consent
He stated that it is both a legal and ethical responsibility to return entrusted funds in the form they were received, unless otherwise agreed.
Member of Parliament and resort owner Gasim Ibrahim has stated that paying resort employees their service charges in Maldivian Rufiyaa (MVR) without their consent may constitute fraud or misappropriation under the law.
His comments follow changes to foreign currency regulations that require resorts to exchange a portion of their US dollar earnings into local currency through banks. Under the revised rules, which took effect in January, Category A resorts are required to either exchange USD 500 per tourist or 20% of their monthly revenue into Rufiyaa.
Several resorts have expressed concern about the impact of these requirements on operational costs and have reportedly planned to pay service charges in MVR starting next month. Gasim, however, raised objections to this approach.
In a post on X Wednesday evening, Gasim stated that since service charges are collected in dollars from tourists, they should be paid in the same currency to employees. He argued that unilaterally converting the payment into local currency without employee agreement could amount to misappropriation or fraud under existing legal provisions.
Gasim said that if an employee objects to receiving service charges in Rufiyaa and the matter is brought before the court, the legal outcome would likely favour the employee.
He further stated that it is both a legal and ethical responsibility to return entrusted funds in the form they were received, unless otherwise agreed.
Gasim, who operates several resorts employing thousands of workers, acknowledged the operational difficulties caused by the government’s changes. However, he emphasised that service charge payments are a key entitlement for employees and converting them into local currency could significantly reduce their value.
He also criticised plans by some companies to make salary payments in cash and warned that doing so without prior agreement may breach contractual obligations, especially where salaries were previously agreed to be paid in dollars.
He concluded that payment in a currency other than that agreed upon should only proceed with the employee’s consent.
