Bill seeks cabinet authority to waive foreign worker quota fees

The government on Tuesday submitted a bill to Parliament proposing amendments to the Employment Act to allow the Cabinet to exempt certain employers from paying quota fees for expatriate workers in specific sectors.

The bill was introduced in the People’s Majlis by PNC MP Mohamed Shameez on behalf of the government.

One of the key provisions of the bill is to permit exemptions from the payment of quota fees required for the recruitment of foreign workers.

Under Section 4-65 of the Employment Act, employers are required to obtain a quota to recruit foreign nationals in line with regulations issued under the Act. When applying for a quota, employers must pay a minimum annual fee of MVR 2,000. The law provides for the quota fee to be reviewed every three years and adjusted through amendments to regulations.

The proposed amendment states that the Cabinet may decide to exempt employers operating within specific industries from paying the quota fee, based on defined circumstances.

The bill outlines four factors the Cabinet must consider when determining eligibility for exemptions. These include supporting small and medium enterprises in the Maldives, increasing long-term employment opportunities within these businesses, reducing disparities between small and large enterprises, and encouraging the introduction of new products, services and business practices through competition.

If approved, the amendment will take effect from the date the bill is passed and ratified.