‘Not for us, but for them’: hospitality industry stakeholder views on design and implementation challenges of Maldivian employment law

Abstract

Using in-depth interviews and documentary sources, this paper examines the design, content and implementation challenges of the Maldivian employment legislation (Law No.2/2008) from the perspective of hospitality industry stakeholders. The findings reveal that the complex Maldivian context presents unique challenges to employment legislation. Current employment legislation has not served the industry well, providing leeway for employers to avoid it. The paper highlights that the current one-size-fits-all approach to employment relations in the Maldives does not suit the hospitality industry. It also points to the critical role of labour inspection in implementing employment law and the difficulties associated with this in the Maldives. The paper highlights the importance of adopting a combination of rational-materialist and normative-cultural approaches to employment law reforms.

Keywords:

• employment law
• Maldives
• industrial relations (IR)
• tourism industry
• resorts

Acknowledgements

Many thanks to Professor Mary Barrett and Dr Peter McLean, writing circle members of THEORI research group at the Faculty of Business, University of Wollongong, the editor and the two anonymous reviewers for their advice and comments in the review process of this paper.

Legislation

Association Act 2003.

Employment Act 2008.

Employment Dispute Resolution Regulation 2011.

Foreign Employment Regulation 2011.

Maldives Tourism Act 1999.

Notes

1. Personal communication with Hussain Siraj, former director of LRA, on 17 July 2012.

2. Chapter 4 of the legislation consists of clauses regarding employment agreement, working hours, work ethics, dismissal, leave entitlement and remuneration, as well as provision on seeking legal redress for employment matters.

3. Relevant provisions with regard to working on a public holiday are Articles 38, 37 (b) and 41 (3).

4. Giving employees a Ramadan bonus has been customary in resorts, consistent with public-sector employment practices. Whereas before the employment law government employees were paid one-third of their basic salary, the amount paid as Ramadan bonus in resorts and other private-sector employers depended on employer generosity. When the employment law was enacted in 2008, there was a clause (Article 51 (a)) regulating the Ramadan bonus. However, stakeholders were not happy with the provision for two reasons. First, the bonus was based on basic salary. The general consensus was that all employees should receive an equal amount as Ramadan bonus. Second, the provision did not exclude employees who were non-Muslims. The Ramadan bonus had previously been paid only to Muslim employees. Due to these concerns, the provision was amended in August 2010.

Additional information

Notes on contributors

Ali Najeeb

Ali Najeeb is a final year PhD candidate in the School of Management and Marketing at the University of Wollongong, Wollongong, Australia.