RDC has sent a memo to their employees last night, informing them that the company has decided to dismiss employees who are not essential to the current work at hand in compliance with the laws and regulation following discontinuation of a company facility.
Road Development Corporation (RDC) has decided to dismiss some of the company's employees.
An internal memo sent to company workers last night stated that a decision has been reached to cease management work at the accommodation facility run by company at their Hulhumale' branch as the land plot is allocated for the use of government's development project.
The company also reasoned that the business run on the facility was operated under loss.
The memo stated that a decision has therefore been reached to dismiss employees besides those crucial to the work at present.
The memo explains that the termination is in compliance with Article 21 (c) of the Employment Act which stipulates that a job position being made redundant within policies, discontinuation of a business or service of the employer, an operational change of the employer or decline of an employer's financial status shall serve as adequate cause for dismissal of an employee.
The law further stipulates that an employee who has served a company less than a year being terminated under these circumstances must be provided with a one month advanced notice or severance pay to the duration of the notice. Moreover, if the employee served an employer for 1-4 years, they must be issued a two month notice or severance pay for the duration of the notice.
Employees who have served over four years at a company are entitled to a three month advanced notice or payments for the duration of the notice.
The memo issued by RDC also assures that the company will proceed in compliance of these mandated guidelines.
RDC is a state-owned entity under heavy distress, as confirmed by Managing Director of the company, Ali Zuhair. He revealed that in addition to generating insufficient income, the company is also operated with more numbers of employees than deemed necessary.
Speaking during an interview with local media, Mihaaru News, Zuhair stated that despite being overstaffed, the company has no intention to advance any dismissals. He said at the time that they plan to create additional areas of work and transfer employees to these areas.
"The company is overstaffed. That's why [we] have to carry such a huge burden. But in review of the government's projects, [we are] hoping that it wont be overstaffed any longer," said the MD.
Zuhair said that while there are currently 18,000 staff employed at the company, 1,200 of them are under temporary contracts. He had affirmed that the company's operations will proceed without a hitch with far less numbers.
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