President has ratified the long-awaited Industrial Relations Act, a landmark piece of legislation that formalises trade union rights and structures collective labour relations in the Maldives for the first time. The bill was passed during the 37th sitting of Parliament’s third session on December 18, 2023, and has now been published in the Government Gazette. The law will come into effect three months from the date of ratification.
Filling a Major Legislative Gap
While the Maldivian Constitution (Article 31) guarantees workers the fundamental right to strike and participate in trade union activities, the absence of a dedicated law on industrial relations has historically left these rights unregulated and difficult to exercise. In its place, workers in various industries have formed informal associations or registered NGOs — a workaround that offered limited legal protection and recognition.
The Industrial Relations Act addresses this gap, establishing a formal and comprehensive legal framework for the creation, registration, operation, and governance of trade unions for both workers and employers. The law introduces mechanisms for resolving labour disputes, facilitates collective bargaining, and outlines clear boundaries for lawful industrial actions.
Key Features of the Industrial Relations Act
1. Formation and Registration of Unions
- Workers’ trade unions can be registered with just seven members, while employer unions require at least three.
- No prior approval is needed to form a union, and any individual has the right to join or lead a union.
- Unions are protected from civil lawsuits when acting lawfully to defend their members’ rights.
2. Oversight and Regulation
- A Registrar of Unions must be appointed within 30 days of ratification to oversee union registration and compliance.
- The Labour Relations Authority is designated as the regulatory body for trade unions.
- Existing unions registered under other laws must re-register within three months.
- A Tripartite Advisory Board of eight members must be established within this timeframe.
3. Dispute Resolution Mechanisms
- An Industrial Dispute Resolution Division will be created within the Employment Tribunal.
- A newly appointed Director General of Industrial Relations will handle dispute processes, mediation, and enforcement.
- The law provides a structured, escalating approach to collective bargaining and resolution.
4. Industrial Action and Strikes
- Strikes must be approved by two-thirds of union members via secret ballot.
- A 48-hour notice is required before industrial action.
- Peaceful industrial actions are permitted but cannot cause harm, damage, or intimidation.
- Industrial actions are prohibited during emergency states, ongoing negotiations, or when involving essential services.
5. Employer Restrictions
- Employers are prohibited from interfering in union membership or discriminating based on union affiliation.
- Coercion, threats, or dismissals linked to union activities are banned under the law.
6. Collective Bargaining
- Unions can initiate collective bargaining by inviting employers with proposals.
- If no progress is made within 30 days, the matter may be escalated to the Director General of Industrial Relations for mediation.
- Collective agreements must be registered within 21 days of being reached.
7. National Labour Centers
- The Act allows for the creation of National Trade Centers and National Employment Centers formed by federations of unions.
A Turning Point for Labour Rights in the Maldives
The Industrial Relations Act is a pivotal moment for Maldivian labour law and industrial democracy. It not only affirms workers’ rights to organise and advocate for better working conditions but also strengthens the legal framework for peaceful negotiations, dispute resolution, and industrial harmony.
By introducing a fair and transparent structure for both employees and employers, the law is expected to enhance workplace relations, promote productivity, and uphold the rule of law in employment practices across sectors — particularly in key industries such as tourism, construction, and transport.
As the Maldives continues to evolve as a modern economy, the enactment of this legislation marks a critical step in aligning the nation’s labour laws with international standards and ensuring that economic progress goes hand-in-hand with social justice.