Maldivian employers, especially in the resort and hospitality sectors, are preparing for a key deadline as new workforce localisation rules come into full effect. The transition period under the Sixth Amendment to the Employment Act (Law No. 22/2020) will end on 22 September 2025. After that date, several major provisions will be fully enforceable.
Key Requirements for Employers
Under the law, any organisation with more than 50 employees must meet specific localisation standards. These include appointing a Maldivian national as head of human resources and ensuring that at least 60 percent of senior management positions are held by Maldivians.
Companies are also required to submit annual workforce composition reports to the Labour Relations Authority. The reports will be made public, increasing transparency in how organisations meet localisation requirements. Additionally, the law protects employment opportunities for qualified individuals aged 55 to 65. Non-compliance can result in fines of up to MVR 100,000.
Benefits of Localisation
Supporters say these measures open up leadership opportunities for Maldivians and strengthen succession planning in businesses. They point out that some international hospitality brands in the Maldives have already met the standards by appointing local HR heads and increasing Maldivian representation at senior levels.
Despite progress, concerns remain. Some resorts continue to have expatriates in top HR positions and have not reached the required 60 percent Maldivian representation in senior management. With the September deadline approaching quickly, authorities and industry stakeholders are calling for close monitoring and strict enforcement to ensure compliance.
The enforcement of these localisation provisions is expected to shift the landscape of the Maldives’ hospitality workforce. Employers who meet the requirements may gain a stronger local presence and more sustainable leadership structures. At the same time, organisations that fail to comply risk penalties and reputational challenges.
Maldivian workers and industry observers are watching closely as September approaches, as the changes could reshape employment practices in the country’s largest economic sector.
