In the Maldives, a probation period is a legislatively recognised introductory period where the suitability of the employment relationship can be determined, before it is confirmed on a long‑term basis. In the Maldives Employment Act, a probation period of no more than three months in duration is permitted, and it is not renewable or extendable. 

During the probation period, either the employee or the employer may terminate the employment contract without any prior notice or reason, subject to statutory rights. This period is used to ensure that both parties have the opportunity to terminate the employment based on actual performance and organisational fit.

Definition of a Probation Period in the Maldives

In the Maldives, the probation period is defined by the Employment Act of 2008. Section 14 allows an employment agreement to specify a probation period of up to three months maximum from the contract beginning date.

During that period, either the employee or the employer may terminate the agreement without notice, provided the employee is still entitled to rights such as minimum wage, leave accruals, and social security benefits under the law.

Lengths of Probationary Periods in the Maldives

The probation period in the Maldives is legally determined not to exceed a certain amount of time. This is to ensure that an employee’s probationary status is not abused. It is also not negotiable with an employer as it is specific to the type of contract signed.

Permanent or Indefinite Contracts

Employees hired with a permanent contract can have a maximum probationary period of three months. This is a fixed legal maximum, and cannot be extended in any way.

The three months are seen as a reasonable period of time for the employer to be able to assess the employee’s performance fairly and comprehensively, and for the employee to be able to have a genuine experience of their new place of work. 

The fixed term also gives a clear point at which the relationship will either be ended, or will become confirmed, and the employee will then have all the rights and protections of a permanent member of staff.

Fixed-Term or Definite Contracts

If an employee is hired under a fixed-term contract, slightly different rules will apply. The probation period must not be more than three months, or one-quarter of the length of the job, whichever is shorter. So, if a worker is hired under a one-year (12-month) fixed-term contract, the probation period can be no more than three months.

On a six-month contract, the maximum probation period would be one and a half months. This is to prevent the trial period from being too long in relation to the length of the job. It is also useful for jobs that are by their nature temporary, such as project work and seasonal work, which is common in the Maldives’ tourism sector.

Legal Considerations for Probation Periods in the Maldives

The law ensures that a probationary period does not diminish an employee’s rights. Under the Maldivian Employment Act, every employee, including those on probation, is entitled to a fair and dignified working experience. Discrimination against probationary employees is prohibited by law. Any employer who violates an employee’s rights during probation can face legal issues.

Pay and Working Conditions

On probation, an employee is usually entitled to the same pay, hours of work, and benefits as a permanent employee. An employer cannot, by law, offer a lower rate of pay or a different set of benefits just because the employee is on probation.

The Maldives uses a tiered minimum wage system, where the minimum wage rate for a given employer depends on the size of the organization. Employers with up to 30 employees are required to pay at least MVR 4,500 per month to workers, and employers in the medium-sized and public categories have to pay MVR 7,000 monthly.

Finally, employers in the large-sized category have a minimum wage of MVR 8,000 per month and are required to have at least 31 employees. This minimum wage system only applies to Maldivian citizens. It does not include migrant workers.

The Maldives’ minimum wage system is reviewed once every two years to keep the system fair and up to date with the general conditions in the country.

Termination and Notice

One of the most important differences of a probationary period lies in the easy termination. The Maldivian Employment Act specifies that either the employer or the employee can terminate the employment contract during this period without providing a cause and without notice. However, this termination must not be discriminatory.

Otherwise, the employee can challenge the employer in court. Once the termination period is completed without termination, the employee is considered permanent, and the regular notice periods for permanent employees apply as follows:

Length of Service
Notice Period
Under 6 months
1 week
6 months to 1 year
2 weeks
Over 1 year
1 month (unless stated otherwise in contract)

Vacation / Holidays

Probationary employees are entitled to all public holidays. If any public holiday falls during their probation, they must be given the day off, like any other employee. They cannot be required to work on public holidays, and they will be paid as usual.

The law also says they have 30 days paid annual leave a year, calculated pro rata. During a probation period of less than three months, they may not be able to take all of that leave. But they are entitled to accrue it from day one.

If they are terminated during probation, their accrued, untaken annual leave must be paid out.

Benefits of Probation Periods in the Maldives

The probationary period is fair to both the employer and the employee when it’s used properly. It gives both of them enough time to make a final decision about the long-term employment relationship.

  • For Employees

Decide if the job is what they expected.

Determine if the work environment is suitable for them.

Prove their skills to the employer.

Leave without giving a cause if the job is not what they expected.

  • For Employers

Provides an opportunity to evaluate the job performance of a new employee in a real work environment.

Helps to see how well the employee fits with the company culture and processes.

Detects any behavioral or skill problems as soon as possible.

Facilitates fast and simple termination of employment if necessary.

Conclusion

Probation in the Maldives is fair to both employers and employees and gives a period to evaluate employees’ fit into the role. The probation period is a maximum of three months with limited rights, and the employment relationship is governed by a set of clear legal protections from day one.

Dealing with probation regulations in the Maldives may be difficult for foreign investors who are unfamiliar with the local laws. That’s why partnering with Remote People could be beneficial for your business.

We handle everything from compliance and contracts to payroll, so they can hire with confidence and focus on what they do best, instead of wasting effort on the paperwork.

Frequently Asked Questions

No, the Maldives Employment Act is clear. The probation period for permanent contracts cannot exceed three months. It is illegal to ask for more than three months or to extend it.

While an employer can dismiss a worker at any time during probation without cause, a termination cannot be discriminatory (based on race, religion, gender, or political affiliation). Otherwise, the employee can challenge the termination decision in court.

Yes, the employee is to be paid for all the days that they have worked, including any accrued but untaken annual leave. The employer is also required to pay any wages due for the notice period if it is specified in the contract.