Employer of Record in Maldives
Skuad’s Employer of Record Maldives (EOR) solutions make business expansion to the Maldives easy and hassle-free. Our unique HR platform allows companies to hire exceptionally talented employees in Maldives, without having to set up a separate legal entity. It streamlines the process of hiring and onboarding a remote team by handling payroll management, taxation, and other legal compliances.
The Maldives at a Glance
The Maldives is a group of islands situated in the Indian Ocean. One of the lesser-known facts about this island country is that it's formed upon ancient dead volcano ranges. Islam is the official religion practiced by the majority. It generally features a tropical climate and has windy beaches.
Population: 5.31 Lakhs
Currency: Rufiyaa (RF)
Capital city: Male
Languages Spoken: Dhivehi (Maldivian)
GDP: 7% at 564.22 crores USD (2019)
What You Must Know Before Employing in the Maldives
To successfully carry out business operations in the Maldives, you must have a complete understanding of the Employment laws and it's multi-faceted regulations. You'll also need to pierce through the Maldivian traditions and culture. This usually takes a lot of research work, which can be expensive and time-consuming, as it's a difficult task.
It can be a challenge to find the best employees for your business organization. Skuad's Employer of Record services in the Maldives can help you by simplifying your employment needs. Below are some details about laws and regulations revolving around employment in the country of the Maldives.
Skuad provides an EOR solution in The Maldives and will handle your organization’s employment needs while ensuring that everything is 100% compliant with the Maldivian law, giving you some valuable free space and time to engross in.
Learn more about local employment laws and how you can outsource a payroll provider to manage your HR responsibilities.
Contractors vs. Full-Time Employees
In the country of the Maldives, Employment contracts are generally of two types:
- Indefinite terms
- Definite terms
Definite contracts last up to two years. The contract can either be extended, making the contract indefinite, or terminated.
Employees who work on definite contracts on their own are known as contractors. They're generally highly skilled in their field of work, and they pay their own taxes and are fully responsible for their time frame. On the other hand, full-time employees get several benefits and other perks, and they receive direct orders and instructions from their bosses. They also go through training, and they require regular surveillance, especially if they are from the accounting and promoting background, as they're a quintessential part of any company. On the other hand, contractors are more flexible, and they're much more economical compared to full-time employees. The nature and the purpose of the work must be dictated in the contract.
Advantages of Hiring Contractors:
- Cost: Hiring contractors may be cheaper in the long run, although their individual rates are higher than those of full-time employees. This is because such employees are not entitled to employment benefits such as bonuses and tax compensations.
- Flexibility: Since contractors are hired on a short-term basis, you are free to determine their work scope temporarily. If new needs arise, new contracts can be drafted in the short term.
- Independence: Short-term contractors usually work independently and on their own timeline. They do not require close supervision, and your resources can be transferred elsewhere as needed.
Advantages of Hiring Full-Time Employees:
- Legal freedom: Since full-time employees are defined as such in their contracts from the outset, misclassifications and the repercussions thereof can be avoided completely. When hiring full-time employees, you determine the terms of the contract and entitlements, and these are not liable to change unless mutually decided by both parties.
- Loyalty and organizational commitment: Full-time employees are likely to be more loyal as they exclusively work for your company. As their individual success depends on your firm's performance, they are likely to invest more effort into their work.
- Knowledge: All employees undergo training when they join a firm. The skills and knowledge gained by a full-time employee, however, stay within the organization.
Book a demo with us to make the best decisions on whether to hire contractors or full-time employees in the Maldives
Hiring in the Maldives
You will have to issue an employment contract to the employee to hire them successfully. The country of the Maldives imposes certain rules and regulations upon employment. It needs the contract to be written in the local language, Dhivehi, all the necessary details such as starting date, termination details, and reimbursements. A copy must be provided to the employee, and all the additional welfare details and timing details, etc., and all the money-related details must be filled in the national currency, Rufiyaa. Skuad's team of experts can assist you in this process of finding the best-suited candidates and recruiting them to your company.
The Employment Act in the Maldives is one of the essential considerations revolving around recruitment. It provides all the structure for a business organization to run properly. It also restricts minors from employment and prohibits discrimination based on sex, age, or class. The Maldives Employment laws also differ depending on the background industry; for example, the law has made it mandatory to recruit at least 50% Maldivians in the hotel industry. There are many well-recognized job-seeking platforms in the Maldives, such as -
- Job The Maldives — Find Jobs in the Maldives | Job Search | Job Vacancies (Job The Maldives)
- Jobsicle - Latest Jobs in the Maldives (Jobsicle)
- Career The Maldives - Fresh Jobs in the Maldives (career-The Maldives.com) (Career The Maldives)
To know more about the hiring procedure in the Maldives, Get in touch with Skuad.
Probation & Termination
Probation in the Maldives
The Employment Act laid out all terms for probation and its duration while working for a company in the Maldives. The maximum duration of a probation period can be up to 3 months, and it cannot be extended. However, the Act has enabled both employer and employee to terminate the contract without notice or practical or rational factors. An employee who fails to be productive after moving up in positions can be terminated after probation or restored to their original position.
To ensure compliance with the Maldivian employment laws, contact Skuad.
Termination in the Maldives
Both the Employer and the Employee have the authority to terminate an Employment contract once the time period mentioned comes to an end. The employer can discharge an employee if they are found guilty of any wrongdoing such as thievery, harassment, etc. The employer is obligated to issue a notice of termination to the employee before two months of the termination. Employees are entitled to certain statutory benefits.
Take Skuad's help to explore the probation and termination laws in the Maldives.
EOR Solution in the Maldives
Skuad's Employer of Record in the Maldives simplifies and fastens the process of business expansion into the very heart of the Maldives. Working with an EOR such as Skuad helps you establish swift management of employee earnings, contracts of agreement, tax details, and work permits. Skuad can offer the perfect pool of suitable candidates for business owners and CEOs without them having to do the difficult work.
Outsourcing Employment Through an Employer of Record
It is important to choose what path you want to take when expanding your business in The Maldives. You can, of course, choose to grow a team from scratch, manage them, or leave them to an EOR partner such as Skuad to regulate the employees' salaries and growth.
Book a demo here to expand your knowledge of Skuad's EOR services
Types of Visas in the Maldives
Payroll in the Maldives
To regulate salary and oversee tax collection of your employees in the Maldives, you must clearly understand the Payroll rules and regulations. As an international organization, it is important to know and follow the country's laws like taxes on income, taxes on business, security taxes, and more. There are two ways of regulating this:
- You can establish and make your own team to manage salaries and taxes.
- You can take our help from Skuad in the Maldives, and we will make sure that everything is per the Bangladesh laws and make management of payroll and employment easier.
Taxes in the Maldives
Incorporation: How to Set Up a Subsidiary in the Maldives
Suppose you want to establish your business corporation without any parent organization in the Maldives. In that case, you'll need good knowledge about the subsidiary laws and regulations that will control your business factors. There are generally two types of company you can set up in the Maldives:
- Private limited companies (PLC)
- Limited liability companies(LLC); however, they require two directors and five sub-directors attached to the board of directors in this country. It also requires one director to stay in The Maldives and supervise.
The process of incorporation is quite simple:
- Complete the Application form with all the required documents and personal details.
- Contact the ministry once the application is processed.
- Make the payment for company registration and annual fee once the slip is obtained.
- The registration certificate, letter of instruction, articles, and Memorandum of Association will be delivered to you.
- The certificate will be further checked and verified by the administration in the Maldives.
If you're sure about taking the next step and opening a subsidiary in the Maldives, Skuad's EOR services can help you with the Extensive process providing you with valuable insights.
Learn more about Skuad's services for incorporating a company in The Maldives here.
Professional Employer Organization (PEO)
A Professional Employer Organization (PEO) service in the Maldives helps a company make the best possible pragmatic human resource decisions, making the company and the business stronger. They provide services ranging from payroll processing to managing reduction of liability and help with employee recruitment. What separates an EOR from a PEO is that the EOR is a legal employer, whereas PEO offers third-party service.
You must have an authorized presence in the Maldives, where your subsidiary is set up if you want a PEO's help. Although, you can still hire employees in those regions using EOR's help without establishing a presence. Skuad is always there for you to cut down your worries and to help you make the process of establishing a company in the Maldives easier!
Book a demo here to learn more about Skuad's EOR services
If your business is ready to benefit from profitable business opportunities in the Maldives' growing economy, collaborating with Skuad's EOR services in the Maldives can cater to all your expansion-related HR requirements.
Further, our tech-enriched, unified HR platform works with the help of our extensive network of experts from over 150 countries. We can ensure full compliance with the local laws in the country of your choice.
Want to know more about how Skuad can help your business? Get in touch with us today!