Due to regulations requiring resorts to convert dollars received into Maldivian banks, claiming it makes resort operations difficult, some major resorts in the Maldives deciding to pay service charge to employees in Maldivian currency is not a rightful decision, says Villa Resorts owner Gassim Ibrahim in a heated response tonight. Under the Foreign Currency Act, from January, “Category A” resorts have the option to convert $500 per tourist or 20% of total monthly revenue in dollars. “Category B” guesthouses must convert $25 per tourist or 20% of monthly revenue in dollars, as stipulated by law.
Citing difficulties due to this decision, Universal Resorts, which operates many resorts in the Maldives, has announced that it will pay service charge to its resort employees in rufiyaa. Additionally, Trans Maldivian Airways (TMA), the world’s largest seaplane operator, has also decided to pay its employees’ salaries in rufiyaa. However, Gassim, the chairman of Villa, one of the most prominent companies in the tourism sector, strongly disagrees with these approaches. As such, he has expressed great concern in a lengthy post on “X” tonight.
Gassim stated that service charge is collected from tourists in dollars, and therefore, that right should be given to the employee in dollars. “If an employee refuses to accept service charge in any currency other than dollars, it could potentially be considered as fraudulently or deceptively taking another person’s property, as described in Article 212 of the Maldivian Penal Code. Returning an entrusted item to a person in its original form is also a great religious and legal obligation upon the person entrusted with it,” said Gassim, who is also a member of parliament for the Maamiligi constituency.
He said that given the legal issue, if an employee objects to receiving service charge in rufiyaa against their will after receiving it in dollars, and the matter is taken to court as per the law, the outcome will be clear. “I too run Category A resorts employing thousands of employees. We also face this difficulty. However, as this is a very significant right of the employees, and since the law provides resorts with leniency in converting dollars, claiming operational difficulties and giving service charge in Maldivian rufiyaa causes a great loss to employees, which is why I shared my view on this matter,” Gassim’s post stated.
“Returning an entrusted item to a person in its original form is also a great religious and legal obligation upon the person entrusted with it,” — Gassim
According to Gassim, some companies attempting to pay salaries in rufiyaa due to financial difficulties is a cause for concern. He said that if an agreement has been made with employees to pay salaries in dollars for a specific period, salaries must be paid in dollars during that period. “The currency can only be changed and paid in another currency if the employee has no objection to it,” he said.”
