Law no. 20/2020 (Public Health Emergency Act) (the “Act”) came into force on 22 September 2020. The Act addresses various issues which have arisen due to the global Covid-19 pandemic and the state of public health emergency announced in the Maldives in relation to the same.
The Act will remain in force for a period of 60 days, from the date on which a state of public health emergency announced relating to Covid-19 is lifted.
Matters Relating to Employment
(1) General
The following actions can only be taken by employers where the employer’s business
has been negatively impacted in relation to Covid-19, resulting in loss of income, to the
point where the employer is unable to pay the wages previously paid to employees:
• reducing the wages paid to employees;
• postponing the date on which wages must be paid to employees as per the
contract of employment;
• sending employees on unpaid leave; and
• dismissal of employees.
Employers must notify employees before taking any action specified above, as
provided for in the contract of employment. Payment in lieu of notice must be paid
where notice cannot be given.
The Act does not prohibit employers from taking action against employees in
accordance with Law No. 2/2008 (Employment Act).
The regulation on principles regarding assessing the negative impacts on businesses
shall be published in the Gazette within 14 days from the date on which this Act came
into force.
(2) Leaves
Employees in quarantine, isolation, being treated for Covid-19 or who, due to travel
restrictions, are unable to travel to the island where their place of work is, must be
granted special paid leave by the employer, where a document issued by the Director
General of Public Health or their delegate, affirms the status of the employee.
Employees who, due to travel restrictions are unable to travel to the island where their
place of work is, must inform their employers of their status.
For employees that have tested positive and have been treated for Covid-19, a
document issued by a health facility affirming their status will also suffice.
Employees who are directly responsible for a family member that needs to be treated for Covid-19 at home or who need to accompany such a family member at an isolation or health facility, shall be granted special paid family obligations leave with the requirement of submitting to the employer, a document issued by the Director General of Public Health, affirming the employee’s status.
(3) Wages
Any changes in wages and unpaid leave may only be allowed where the employer and
the employee are able to come to a mutual agreement.
(4) Dismissal
Employees may only be dismissed by way of redundancy and where both of the
following have occurred:
• the employer’s business has been impacted negatively due to Covid-19, resulting in
loss of income, to the point where the employer is unable to pay the wages
previously paid to employees; and
• the structure of employees needs to be revised.
In such instances, in addition to giving notice to employees, employers must inform
employees of the guidelines which will be followed in deciding which employees will
be made redundant.
Where an employee is made redundant and the employer hires a new employee to fill
the same position, grounds for redundancy will not be accepted as reasonable.
(5) Employment disputes
An employee has the right to file a claim at the Employment Tribunal where their m
employer has acted in contravention of this Act, in making changes to the wages,
sending the employee on unpaid leave or in dismissing the employee.
A claim can be filed before the 90th day from the day on which the action was taken or
before the 30th day from the day on which the state of public health emergency is
lifted, whichever occurs later.
Provision of Treatment & Health Insurance
(1) Maldivians
All treatments for Maldivian citizens who have tested positive for Covid-19 shall be
covered under the National Health Insurance Scheme or a special scheme or fund
allocated for Covid-19.
(2) Expatriates
All treatments for expatriates who have tested positive for Covid-19, must be covered
under a health insurance scheme which they have been enrolled in. Expenses incurred
in relation to treatment not covered under such insurance scheme shall be borne by the
employer.
Where expatriates have not been enrolled in a health insurance scheme, employers of
those expatriates shall be responsible for the cost of all treatments.
Where expatriates are under the custody of the Government due to expiry of the
approval granted to them, the Government shall facilitate all Covid-19 related
treatments for such expatriates.
Expatriates shall bear the costs of treatment for Covid-19 not covered under the
situations detailed above.
Housing & Protective Steps on Fundamental Services
Notice clauses in pre-existing residential tenancy agreements are to be overridden and
even if there is no such written agreement, landlords will be required to give a 60-day
written notice to evict any tenant and/or terminate such an agreement.
During the notice period, landlords are barred from taking any actions to obstruct
tenants from enjoying the full benefits of the premises or evicting tenants, which further
includes petitioning to any relevant court.
Even where a landlord has served an eviction notice to a tenant, both parties must
continue to fulfil their other obligations under the tenancy agreement.
A fine of MVR 5,000/- is to be imposed where it is found that a landlord or anyone
representing them has engaged in any activity detailed below, within the duration in
which this Act remains in force:
• discontinuation of water, electricity and telecommunications services;
• doing anything which obstructs the tenant from residing freely at the premises.
Where any party has acted in contravention of the above, the victim of such action may
file a complaint to the Ministry of National Planning, Housing and Infrastructure.
Mortgages
For the duration the Act remains in force:
• initiation of mortgage enforcement proceedings of any residential mortgages is to
be prohibited; and
• enforcement proceedings initiated before the Act came into force must be halted
temporarily.
Social Welfare
Government is to ensure that people who are facing financial difficulties due to Covid-
19, and either have or may become homeless at the time or after the Act came into
force, are provided temporary shelter for the duration in which this Act remains in force.
Government is also required to ensure that people faced with food insecurity are either
provided food directly, through a third party or provided with financial assistance to
achieve food security.
Tax Relief
The Government may temporarily extend deadlines for tax payments to be made to the
Maldives Inland Revenue Authority (“MIRA”), at its discretion. Following such extension,
MIRA must extend the deadline for submission of any related tax submissions or other
documents.
The period for which any such extension is granted and the new deadline shall be
published in the Gazette.
MIRA is required to publish the administrative arrangements relating to the extension of
such deadlines within 14 days of this Act coming into force.
Access to Justice
Where the state of public health emergency announced relating to Covid-19 subsists,
courts and tribunals are required to:
• make arrangements to conduct open hearings where required, with the
appropriate safety measures in place (any such principles decided by the courts
must be openly published);
• make arrangements to conduct remote hearings in order to facilitate access to
justice;
• make arrangements for submission of claims, exchange of statements or
documents related to the proceedings to be done electronically.
Where hearings are conducted via audio/video link, courts and tribunals must make
audio/visual arrangements to conduct these hearings openly. This does not apply to
situations where exclusion of the public from the trial is permitted under the
Constitution of the Republic of Maldives or any other law.
Where a deadline of less than 10 days has been given under the law to submit a claim, 1
10 extra days are to be granted, pursuant to changes brought to normal working hours
or instructions given to stay home, relating to measures taken during the state of public
health emergency. However, this extension of deadline is not applicable for remand
hearings.
Administrative Powers of the State
Documents to be issued by or submitted to ministries and other state institutions are to
be issued or submitted electronically.
Submission of annual reports and financial statements of State institutions, banks, any
other financial institution or legal entity which became due from 12 March 2020
onwards, shall be deemed suspended from thereon, until the date on which the state of
public health emergency is lifted.
If such suspension concerns a particular act, the new deadline to complete such action
shall be the 30th day from the date on which the state of public health emergency is
lifted.
If the deadline has been extended for an audit, the new deadline shall be the 90th day
from the date on which the state of public health emergency is lifted.
Special Powers to Enforce the Act
During the subsistence of a state of public health emergency announced related to
Covid-19, the Director General of Public Health may order the Police to enforce the
following penalties against those who violate orders from the Director General of Public
Health:
• a fine between MVR 1,000/- and MVR 10,000/- for individual citizens;
• a fine between MVR 5,000/- and MVR 100,000/- for a legal entity.
The Act also includes special provisions relating to health practitioners, details of which have not been included in this overview.
Disclaimer:
*This material has been prepared for informational purposes only. It is not intended to provide and should not be relied upon or construed as a legal opinion or legal advice regarding any specific issue, nor is this information intended to create, or receipt of it does not create, an attorney-client relationship between the reader and the firm.