The Government has submitted an amendment to the Employment Act to the People’s Majlis, proposing changes to the quota fee required when small and medium enterprises (SMEs) recruit foreign workers.

The bill was sponsored on behalf of the Government by Madaveli MP Mohamed Shameez, with its initial debate held during Tuesday’s sitting of the People’s Majlis.

Explaining the objective of the amendment, the member said the proposed changes seek to strengthen provisions governing the termination of employment agreements between employers and employees, while also reviewing the quota fee imposed under the law for hiring foreign workers.

The amendment further sets out principles for exempting certain businesses from paying the quota fee. Under the proposal, the authority to grant such exemptions to specific categories of enterprises would rest with the Cabinet.

The bill outlines several considerations in granting exemptions. These include fostering a supportive environment for micro, small and medium enterprises, expanding their contribution to the national economy, creating long-term employment opportunities within the sector, narrowing the gap between SMEs and large businesses, and encouraging greater competitiveness, innovation and the introduction of new products and services.

In addition to the quota-related provisions, the Government has proposed several amendments to the Employment Act. These include revisions to notice periods required for termination of employment and a new provision allowing Government employees with children up to two years of age to receive two designated breaks during the workday without any deduction from salary.