Ministry of Finance has amended the eligibility criteria for COVID-19 relief loans to allow businesses with Employment Act violations to seek relief loans under certain conditions.
The finance ministry said businesses which had applied for COVID-19 relief loans include businesses which dismissed local employees or sent employees on no-pay leaves due to the COVID-19 crisis. While such businesses are not eligible for relief loans under the original policy, the ministry has amended the eligibility criteria to allow such businesses to seek loans under certain conditions.
As such, businesses which have their loan applications rejected due to Employment Act violations must fulfill two conditions before submitting a request to review the decision on their application. The first condition is restoring the jobs of individuals who were dismissed or restoring the monthly pay of employees sent on no-pay leaves to at least USD 323. The company must also request employees who have registered at the Job Centre portal due to effects on employment to withdraw their case from the Job Centre within 3 days.
The second condition is to submit an undertaking document which includes details of the employees dismissed or sent on no-pay leaves due to the COVID-19 crisis, along with the details of the dismissal or no-pay leave. The document must also include a written agreement of the company to restore the jobs of dismissed employees and restore the wages of employees sent on no-pay leaves to at least USD 323. The list of employees who accepted or rejected the proposal must also be included in the undertaking document.
The government is providing relief loans for small and medium enterprises (SMEs) to prevent bankruptcy amid the COVID-19 pandemic. The loans are provided through Bank of Maldives (BML) and SME Development Finance Corporation (SDFC).