Nada goes to High Court to avoid compensation for employee fired during maternity leave

Aug 21, 2025, 9:35 AM
Fathimath Nada. -- Photo: Corporate Maldives

Fathimath Nada. -- Photo: Corporate Maldives

Owner of Nada Saloon and Nada Clinic has appealed a decision of the Employment Tribunal at the High Court to avoid paying compensation to an employee who was dismissed during maternity leave.

According to the High Court website, the tribunal's decision on May 29 was appealed in the High Court on June 29. The court has not yet decided whether to register the case.

The Employment Tribunal ruled against Nada Saloon in a case filed by an employee who was fired last year. The employee, began working at the saloon in 2018, went on maternity leave from August 2024 to October 2024.

She also took her annual leave from July 1 to July 31. The saloon only paid her during the annual leave and did not pay her salaries and allowances for the duration of the maternity leave.

Nada Saloon said employees on maternity leave get the salaries and allowance if they confirm their return to work. But the employment contract does not state this and the Employment Act requires employees to be paid during maternity leave.

The employee was not paid by October and she informed the saloon about her decision to quit if she was not paid. In response, the saloon fired her and insisted they were not obligated to pay her.

The Tribunal ruled:

  • Nada Saloon violated the Employment Act
  • Nada Saloon fired the employee without proper reason
  • Pay MVR 48,600 as salary and allowances for the period of maternity leave
  • Pay MVR 97,200 in six months' salary and allowances as compensation for the unjustified dismissal
  • Pay MVR 3,000 for the Ramadan allowance
  • Pay MVR 35,000 to the lawyer who represented the case

The saloon's owner Fathimath Nada did not attend the Employment Tribunal hearings. After giving various reasons, the saloon also did not provide details of who would attend the hearings on her behalf.

Nada Salaon and Nada Clinic, which have been running since 2017 under Saloon Maldives, are currently two popular brands in Maldives. Nada is also a well-known businesswoman in the country.

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