Government to Provide Unemployment Allowance

Thursday 2nd of April 2020

Government to Provide Unemployment Allowance

On 1st April, Minister of Finance Ibrahim Ameer announced that the state was in discussions to provide a special allowance for individuals that are losing jobs due to the economic regression caused by the global COVID-19 pandemic.

So far 292 individuals have reported their terminations to the job centre established by the government and according to Tourism Employees Association of Maldives (TEAM), over 11,000 employees are being forced to go on no-pay leaves by their managements. During such a situation, the government is offering unemployment allowances so that those who were terminated have a way to earn an income.

Further, Labour Authority released a statement declaring that some resorts were firing employees in violation of the Employment Act. The authority requested all companies to follow the legal procedures in terminating employee contracts even in these trying times. Moreover, employees could not be forced to take unpaid leaves without their consent. Both parties must be in mutual agreement before an action undetermined by the law, such as unpaid leave, is enforced with binding effect.