108 Fenaka Employees Seek Voluntary Resignation as Company Offers Business-Support Opportunities

Fenaka Corporation has received voluntary resignation requests from 108 employees under a workforce restructuring programme, with the company planning to facilitate opportunities for departing staff to establish their own private businesses, says the company’s MD Mohamed Afeef Hussain. 

Speaking on Voice of Maldives’ Ahaashay Bunaanan programme, Afeef said employees who opt to leave under the scheme will receive a severance package equivalent to four months’ salary in line with redundancy policies.

advertisement

He added that the government will work to create pathways for these individuals to access support and opportunities to start independent businesses following their departure from Fenaka.

The Fenaka board-approved voluntary separation policy forms part of a wider workforce restructuring initiative aimed at “right-sizing” the company. Under the framework, employees who remain with Fenaka will be selected based on approved organisational requirements and staffing needs.

Afeef said Fenaka has conducted assessments across departments, divisions and atoll branches to determine the required workforce structure. He added that branches have been categorised into four levels based on customer numbers, ranging from larger population centres to smaller island branches serving fewer than 300 customers.

The Managing Director said Fenaka currently employs around 8,000 staff, with the company spending between MVR 40 million and MVR 50 million monthly on salaries. He said the company’s current revenue is insufficient to sustain its existing wage bill.

Afeef previously stated that Fenaka’s salary expenditure stands at around MVR 90 million, describing the figure as disproportionate to the company’s revenue and operational capacity.

He said some employees recruited for previous projects remain on the payroll despite delays or suspension of those projects, contributing to financial pressure on the company.

Fenaka said recruitment under the new organisational structure will prioritise experienced and long-serving employees, while redundancies will follow after required positions have been filled. The company said severance benefits will vary depending on employees’ length of service and that the restructuring aims to improve long-term operational sustainability.