Effective March 26, a new decree will allow private companies to implement a number of measures related to jobs and salaries to ensure financial stability amidst the effects of coronavirus disease (COVID-19) in global economy.
As per the Ministerial Resolution No (279) of 2020, which was signed by His Excellency Nasser bin Thani Juma Al Hamli, Minister of Human Resources and Emiratisation (MOHRE), the following measures may be taken by private firms in gradual stages in agreement with their employees:
• Implement a remote working system
• Reduce the salaries of employees permanently or for a temporary period
• Send employees on paid or unpaid leave
Companies may decide to reduce employees’ salary temporarily. This means that it will only be valid until agreed duration or until the new resolution remains valid. They can do so by filing an annex or amendment to the existing employment contract.
Meanwhile, under Article 6 of the Resolution, establishments seeking to permanently reduce the salaries of foreign employees must first obtain MOHRE’s approval by applying for Employment Contract Details Amendment Service.
This in particular aims to aid companies to restructure or reevaluate salaries of their employees.
During this time, foreign jobseekers must register to an online job portal where they can also apply jobs in registered organization, as mentioned in Article 7 of the Resolution. This will only run while the UAE implements precautionary measures to temper COVID-19.
