The 9th Amendment to the Employment Act (Law No. 2/2008), ratified on 14 March 2026, introduces several important updates affecting both employers and employees in the Maldives. The amendment clarifies certain provisions, extends employee entitlements, and introduces new compliance obligations relating to confidentiality and regulatory enforcement.

Below is an overview of the key changes introduced by this amendment.

Section 22 – Termination Notice Requirements

Section 22, previously titled “Giving Notice before Termination,” has been amended and renamed “Employment Contract Termination Notice.”

Section 22(a) now clarifies that notice requirements apply except in circumstances described in Sections 14 and 23. Previously, the section referred only to Section 23. With the amendment, Section 14 which relates to probationary and temporary employees is also referenced. This clarifies that termination notice requirements do not apply in situations covered under these provisions.

Section 22(a)(1) has been revised to state that employees who have worked for less than one year must be given two weeks’ notice prior to termination. Previously, the law specified that the two-week notice requirement applied to employees who had worked for more than six months but less than one year.

Section 22(c) now clarifies that employers and employees may mutually agree to longer notice periods than those specified in the Act, and such agreements are not restricted.

Section 25 – Payment in Lieu of Notice

Section 25 has been rephrased for greater clarity. The provision confirms that instead of requiring an employee to serve the notice period, an employer may terminate the employment contract immediately by paying the salary and other allowances that would have been due during the notice period. While this discretion existed previously, the amendment clarifies the wording of the provision.

Section 37 – Overtime Work

Minor wording changes have been introduced to Section 37(a) to provide clearer guidance regarding overtime work arrangements.

The provision now explicitly states that when an employee is required to work beyond their normal working hours, such overtime must be performed through an agreement between the employer and the employee. Overtime compensation must also be calculated in accordance with Section 37(b) and must comply with the provisions of Section 38.

Section 45 – Extension of Nursing Breaks

One of the most notable amendments relates to Section 45, which addresses breaks granted to employees who have recently given birth.

Under the previous law, employees returning to work after maternity leave were entitled to two daily breaks of 30 minutes each, without any deduction in salary, until the child reached one year of age.

The amendment now extends this entitlement until the child reaches two years of age, providing additional support for working mothers and childcare needs.

Section 64-4 – Exemptions from Foreign Employee Quota Fees

The amendment introduces Sections 64-4(h) and (i) relating to foreign employee quota fees.

Employers are generally required to pay an annual quota fee of MVR 2,000 for foreign employees. However, the new provisions authorize the Cabinet of Ministers to grant exemptions from this quota fee for certain business sectors.

When determining whether such exemptions should be granted, the following considerations will apply:

• Promoting a supportive ecosystem for Micro, Small, and Medium Enterprises (MSMEs) in the Maldives
• Supporting the creation of sustainable employment opportunities within the MSME sector
• Addressing disparities between small enterprises and large-scale businesses
• Encouraging innovation, modern business practices, and improved quality standards

These provisions aim to strengthen the role of MSMEs within the national economy.

Article 84 – Confidentiality Obligations of Labor Relations Authority Officers

Article 84, which governs confidentiality obligations of officers of the Labor Relations Authority, has been strengthened.

Article 84(a) now states that all information obtained by officers in the course of their duties must be kept confidential, both during their employment and after leaving office. Previously, the provision referred only to certain categories of information.

A new clause has been introduced confirming that employment officers who breach this confidentiality obligations will face action under the law.

Section 86 – Provisions on Disclosure of Confidential Information

Section 86 has been revised to strengthen enforcement relating to confidential information.

• Employment officers are prohibited from disclosing confidential information obtained under Article 84.
• Violations may result in fines ranging from MVR 5,000 to MVR 25,000, imposed by the Labor Relations Authority.

Section 86-1 – New Offences Introduced

The amendment also introduces several new offences and penalties.

It is now prohibited for any individual to falsely represent themselves as an employment officer. Violations may result in fines between MVR 25,000 and MVR 100,000.

Any person who submits false, misleading, or incorrect information to the authority in documentation, records, or submissions may face fines ranging from MVR 15,000 to MVR 100,000.

All fines imposed under the Act and its regulations must be paid to the Maldives Inland Revenue Authority.

Article 97 – Updated Definitions

The amendment updates the definition of “Official Public Holidays.” The following days are now specifically listed:

• Friday (Hukuru Day)
• National Day
• Prophet’s Birthday (Meelaadh)
• Day Maldives Embraced Islam
• Independence Day
• First Day of Ramadan
• Eid al-Fitr
• Victory Day
• Republic Day
• Hajj Day
• Eid al-Adha
• International Workers’ Day

The amendment also clarifies that “employment” refers to continuous employment without termination, excluding daily wage workers.

Conclusion

The 9th Amendment to the Employment Act introduces a combination of clarifications, expanded employee benefits, and stronger regulatory enforcement measures. Key changes include revised termination notice provisions, extended maternity-related benefits, potential exemptions for MSME employers from foreign worker quota fees, and stricter confidentiality and compliance obligations.

Employers should review their employment contracts, HR policies, and compliance procedures to ensure alignment with the amended provisions.