Fenaka Rolls Out Voluntary Exit Scheme With Four-Month Payout

Fenaka Corporation has introduced a redundancy policy aimed at reducing staff costs, with employees opting for voluntary resignation eligible for a lump-sum payment equivalent to four months’ salary.

Speaking on the Public Service Media’s Raajje Miadhu program on Wednesday, Managing Director Mohamed Afeef Hussain said the decision follows mounting cost pressures that have affected service delivery across the country. He noted that the company has been required to restructure its operations to improve efficiency and ensure long-term sustainability.

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The policy, approved by Fenaka’s board, forms part of a wider workforce restructuring process intended to “right-size” the utility provider. Under the new framework, employees who choose to leave voluntarily will receive severance based on a four-month salary package, while remaining staff will be selected according to approved organisational slots.

Afeef said the company has assessed staffing needs across departments, divisions and atoll branches as part of the restructuring. He added that branch operations have been categorised into four tiers based on customer numbers, ranging from larger urban centres to smaller island units serving fewer than 300 customers.

He also stated that Fenaka currently employs around 8,000 staff and spends approximately MVR 90 million on salaries, describing the figure as disproportionate to the company’s revenue and overall operating capacity.

According to the management, some employees recruited for earlier projects remain on payroll despite project delays or suspension, adding to financial strain.

Afeef said recruitment into the new structure will prioritise experienced and long-serving employees, with redundancies to follow once staffing slots are filled. The company added that severance packages will vary according to length of service and that the restructuring is being carried out to strengthen operational sustainability.