An amendment to the Employment Act concerning service charges has been accepted and forwarded to a parliament the Committee on Economic Affairs for further review.
The bill was submitted by Kendhoo constituency Parliamentarian Mauroof Zakir, a member of the Maldives Democratic Party (MDP). During the debate stage, many parliament members noted that the bill requires further study.
The proposed amendment highlights two key changes. Firstly, it seeks to ensure that service charge distributed to employees is directly derived from the amount collected from tourists. Secondly, it proposes that employees working under contract should also be entitled to receive service charge.
Member of Parliament, Mauroof stated that the amendment was introduced due to concerns that some resorts collect service charges in foreign currency from tourists but pay employees in Maldivian Rufiyaa instead. He noted that although the law clearly states that service charge should be distributed both directly and indirectly, recent changes; particularly government policies related to USD have led to a significant portion of service charge earnings being converted into local currency before being paid to employees. As a result, workers in the tourism sector are experiencing a notable decline in income.
Several Parliamentarians who participated in the debate questioned the intent behind the bill. They pointed out that similar amendments were not passed during the 19th Parliament but were reintroduced in the 20th Parliament, suggesting that the current majority may not be prioritising more pressing public concerns and could be wasting parliamentary time.
Speaking during the debate, Majority Leader and Inguraidhoo Member of Parliament Ibrahim Falah said the bill is directly related to employees and businesses in the tourism sector and would therefore proceed. He added that during the committee stage, consultations would be held with relevant stakeholders, including resort owners and employees, to incorporate necessary improvements before passing the bill.
“We are submitting this amendment today with the intention of sending it to committee. During this stage, we will consult broadly with resort owners, employees, and all relevant parties, and introduce any necessary changes to ensure the amendment benefits both employers and employees,” Falah said.
The bill was approved to be accepted by Parliament with unanimous support from all 67 Parliamentarians present at the sitting. It has now been referred to the committee on Economic Affairs for further examination.