Fenaka launches voluntary resignation scheme with 4 months’ pay

Fenaka Corporation has introduced a voluntary resignation scheme offering employees compensation equivalent to four months’ salary as part of efforts to reduce and reorganise its workforce.

Details of the programme were outlined in an internal memorandum issued to employees and subsequently circulated publicly.

The memo, signed by Fenaka Chief Corporate Officer Hussain Usaid, states that employees who choose to resign under the scheme will receive a payment equal to four months of their salary.

According to the memorandum:

The company said the programme forms part of ongoing efforts to adjust staffing levels and improve workforce management.

The memorandum also referred to provisions contained in Fenaka’s Employee Regulations 2022 and instructed employees interested in retiring through the company’s Early Retirement Programme to submit applications to the Human Resources Department.

Fenaka has previously faced scrutiny over staffing and employment practices.

Past audit reports have highlighted concerns regarding recruitment levels, stating that employee numbers had increased beyond levels supported by the company’s revenue base. Audits also raised concerns about promotions granted outside established procedures.

The corporation has faced financial pressures in recent years, with salary-related expenditure cited as a factor affecting its ability to procure equipment and maintain utility services.

Fenaka operates electricity, water and sewerage services across islands throughout the Maldives and is one of the country's largest state-owned enterprises.