Fenaka MD: Voluntary redundancy program attracting high participation

Fenaka Corporation’s Managing Director Mohamed Afeef, on Tuesday, stated that the company’s voluntary redundancy program, which offers employees a severance package equivalent to four months’ salary upon resignation, has attracted a significantly higher level of interest than anticipated.

Fenaka, which currently employs around 8,000 people, began accepting applications for voluntary redundancy on June 2. According to a memo signed by Chief Corporate Officer Usaid Hassan, which was circulated across all departments, interested employees have until 15:00pm on June 14^th to submit their applications.

Fenaka said the initiative forms part of a broader strategy aimed at streamlining operations, improving organizational efficiency, and enhancing the services delivered to the public. It stressed workforce restructuring is a necessary measure to strengthen its long-term financial sustainability.

The corporation noted that a considerable number of employees stationed across various islands currently have limited productive work due to shortages of materials and other resources required to advance ongoing projects. Fenaka expressed confidence that the proposed structural reforms would improve productivity and contribute to higher service standards.

Under the program, employees who opt for voluntary resignation will receive a compensation package equal to four months’ salary. The initiative represents the first phase of the company’s wider organizational restructuring efforts.

Although a substantial number of employees have reportedly already tendered their resignations, Fenaka has not disclosed the exact figures. Speaking with Sun, Managing Director Afeef confirmed there has been strong response to the program since applications opened on June 2 but declined to provide specific numbers. He added that the total number of resignations would be announced after the application deadline has passed.

The program has faced criticism from opposition figures, who argue that it effectively targets lower-level employees for dismissal. Prominent lawyer Ali Hussain was among those who publicly criticized the policy on social media.

In a post on X, Ali Hussain argued that before making ordinary employees redundant and depriving them of their livelihoods, the government should first reduce excessive state expenditure and halt the creation of unnecessary, highly paid political appointments.