Employ Candidates Compliantly in Maldives

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  1. Overview: Maldives
  2. Global HR Compliance
  3. Global PEO and payroll
  4. Contractor vs. employee: which is better?
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Global HR Compliance in Maldives

Acumen International is defined the process when a company in Maldives to take care of the human resource department of the organisation as such jobs might be tedious and complex to normal employees. When the taking such decisions try to keep in mind the financial capability and size of the business.

Team of specialists of Acumen International has become increasingly important as HR professionals seek ways to reduce time and resources spent on transactions and administration, so the managers can concentrate on more strategic activities. This reduction in time and resources also translates to savings for the business.

The war for global talent has never been tougher. Attracting and keeping sought-after international employees requires knowledge. Whether your company is already engaging or planning to engage global workforce in Maldives, you need to trust that your operations are executed without flaw and without any unnecessary risks.

Businesses of all sizes face a devastating lack of information and support on global employment, taxation, and immigration in Maldives. There’s a common and significant gap between what’s required to be 100% compliant and what most organizations actually have at their disposal.

Acumen International can fill the gap in fragmented Global HR Compliance knowledge

We are experts in global workforce employment in Maldives, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.

We act as an information service for corporate clients, agencies, and independent contractors and freelancers. Our Global HR Compliance service in Maldives will help you:

  1. Navigate legislation and local nuances of Maldives. You need to know what is acceptable and what can expose you to employment litigation as well as employee / independent contractor misclassification risk in Maldives.
  2. Avoid areas of possible risk. Certain areas and activities can create unnecessary risk, such as employer-employee relations. We can help you with worker classification, payroll and tax calculations, and social cost contributions.
  3. Handle currency exchanges and local invoicing in Maldives. We save you time and effort, freeing you from having to understand complicated regulations and tax calculations written in the local language and subject to frequent changes.
  4. Create employment contracts and handle compliant engagements. Our objective is to assist you with international HR compliance issues and offer you the best payment and taxation options in Maldives.
  5. Manage expatriate immigration and visa support nuances in Maldives. Acumen International provides information about the best scenarios of expat immigration and employment.
  6. Handle global recruitment issues. We can help you select the person and then employ him with our help. We advise you on local employment laws and implied compliance risks to determine the most cost-effective, compliant, and risk-free solution for you.
  7. Withdraw from the region in the least risky and most cost-effective way. If you choose to do so, we can help you withdraw from the region as simply as possible.

Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.

With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Maldives.

Hiring and Firing Workforce in Maldives Guide

# Employment contracts

There shall be a written employment agreement (consisting of one or several documents) between the employer and the employee.

The following types of agreements are permitted:

  • Employment agreements of a definite term;
  • Employment agreements of an indefinite term;
  • Employment agreements specific to certain types of work.

# Minimum (Statutory) Employment Rules and Regulations in Maldives

# Hours of work:
No employee shall be required to work more than forty‐eight hours a week. This principle does not include overtime carried out in accordance with the Labour Act.

No employee shall be required to work more than six consecutive days a week (on a day that is normally a day off or has been agreed as a day off), without being provided with twenty‐four consecutive hours of leave.

# Probation period:
The Employment Act provides for probation period. The maximum duration of probation period is three (3) months. Probation period may not be extended or renewed.

A significant aspect of probation period is that either party has the right to terminate the contract during the probation period without cause or reason, and without following any due process.

# Annual leave:
Unless otherwise provided herein, upon completion of one year of employment, an employee is entitled to thirty days of paid annual leave.

Any unused annual leave entitlement for which the employee has not been paid by the employer shall be paid to the employee prior to dismissal from employment.

# Parental leave:
Female employees shall be granted sixty days maternity leave based on a medical certificate specifying the estimated date of giving birth issued by a licensed medical practitioner. Such leave shall not commence thirty days prior to the estimated date of giving birth. This section does not prevent the employee from returning to work prior to expiry of the duration of her maternity leave.

Female employees on maternity leave are also entitled to all the rights and benefits granted under the employment agreement such as the right to a promotion.

No employee on maternity leave shall be subject to any lessening of rights conferred by the employment agreement or in calculating the duration of employment for due promotion. Nor shall the period of maternity leave be deemed a stoppage, suspension or shortening of duration of work.

A female employee shall be duly paid her wages on the same day salary payments are made in the normal course of business even while the employee is on maternity leave.

A further leave of twentyeight days (in addition to the maternity leave) shall be granted to an employee where a licensed medical practitioner certifies of the employee’s inability to return to work either due to the ill‐health of the mother or the baby.

Such leave can be granted prior to the estimated date of delivery or after delivery. The employer has the discretion not to pay the employee for the duration of any such leave.

# Sick leave:
The employer is required to grant thirty days of paid sick leave to the employee during every year of employment.
The employer is not required to grant sick leave for two consecutive days unless a medical certificate specifying the nature of the employee’s illness and recommended duration of sick leave issued by a licensed medical practitioner is submitted on the first day back at work.

# Overtime:
Employees shall not be required to work overtime except unless this has been agreed in the employment agreement. An employee working overtime shall be paid 1 ¼ times his hourly working wage as over time, and if working overtime on a Friday or a public holiday shall be paid 1 ½ times his hourly working wage as over time.

# State minimum salary:
The Maldives’ minimum wage is 3,100 Maldivian rufiyaa per month in the government sector. There no minimum in the private sector. Maldives’ minimum wage was last changed in January 2014.

# Employee dismissal:
As a general rule, an employee may be terminated where further continuation of employment is unworkable or detrimental to the employer.

The courts has established that in termination of employment the employer must establish procedural fairness and substantial fairness.

Procedural fairness means the case must be fully investigated as per the written policies of the company and among other things, the concerned employee must be given the opportunity to respond to the allegations of misconduct. Substantial fairness means the actual reason(s) for termination must be reasonable and fair, taking into account all the circumstances of the case, previous record of the concerned employee and previous decisions of the company in similar cases.

In order to terminate the employee without notice, the employer must establish, on balance, that any other reasonable employer would have treated the particular misconduct in hand to be so serious that no other reasonable employer would have tolerated.

The Employer may terminate the service of an employee or call upon the employee to resign from the service of the Employer. In this case the employee would be entitled to a notice period as specified below:

  • Two week’s notice for any person in employment for more than six months but less than one year;
  • Once month notice for any person in employment for more than one year but less than five years; and
  • Two months notice for any person in employment for more than five years.

The notice period is not applicable where the termination is due to gross misconduct. Even in instances where the employee is terminated under notice, due procedures and substantial fairness must be established.

Acumen International can help you fast-track your possibilities of entering and expanding your business in Maldives by providing you with our Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any need to set up a legal entity first or afterwards.

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