Eleven employees at the Fenaka Corporation branch in Alif Dhaal Mahibadhoo have been dismissed following the handover of operations to STELCO.
The terminations occurred under Fenaka's redundancy policy after the complete transfer of the branch's functions. Of the branch's total workforce of 26, 15 employees were transferred to STELCO.
Employees said they had been assured throughout the transition that they would be integrated into the new structure and offered contracts. Some reported being asked to sign membership forms for the ruling People's National Congress shortly before the dismissals.
The dismissed group includes long-serving staff with more than 10 years of service. Local reports indicated that a majority of those let go were affiliated with the opposition Maldivian Democratic Party, while many of those retained supported the ruling party.
The Mahibadhoo Island Council expressed concern over the sudden terminations and called for the employees to be reinstated. The council said the dismissals placed immediate socio-economic strain on the workers and their families.
Former Vice President Faisal Naseem noted that the Employment Act provides clear protections for workers and that due process should be followed.
Fenaka had been responsible for sewerage services on the island, while STELCO manages water and electricity. The transfer of utility operations between the two state-owned companies has led to staffing changes at several branches.
No official statement from Fenaka detailing the specific criteria used for the dismissals has been widely reported. The case has drawn attention to employment practices during the restructuring of utility services.