State-owned company, Road Development Corporation (RDC) has decided to layoff some staff.

RDC’s Spokesperson told Sun that the company has decided to lay off Hulhumale’ Facility’s employees that are not crucial to the operations at present.

The Spokesperson also said the company has decided to halt management works at the accommodation facility operated at Hulhumale’ Facility as the land plot is set to be utilized for the government project.

It was also noted by the Spokesperson that the business conducted at the facility had been run at a loss.

The memo sent out to the employees by RDC refers to Article 21 of the Employees Act establishes the poor financial state of the company as a reasonable cause to layoff employees from a company.

However, employees being laid off in this regard, if they have not served the company for one year, will need to be given one month’s notice to be paid severance for the period of one month.

RDC, since its inception, has been operating at a loss.