UAE issues decree to regulate private sector jobs, salaries

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Private sector establishments affected by the Covid-19 coronavirus can implement a remote working system, reduce the salaries of employees permanently or for a temporary period, or send them on paid or unpaid leave, according to a new resolution passed by the Ministry of Human Resources and Emiratisation (MoHRE).

The ministerial resolution No (279) of 2020 on employment stability in the private sector signed by Nasser Thani Al Hamli states that companies affected by the Covid-19 precautionary measures in the country can gradually adopt the steps in agreement with their employees.

The decision is to help business restructure and reevaluate their contractual obligations to the employees.

The resolution comes into effect from March 26.

Article 6 of the resolution states that establishments wishing to permanently reduce the salaries of non-national workers shall apply for 'employment contract details amendment' service to obtain the ministry's approval. And to temporarily reduce the salaries of staff, companies should make a 'temporary supplement' to the existing employment contract.

Business affected by Covid-19 can reduce their staff strength but the surplus staff must be registered in the ministry's virtual job market so that they can be hired by other companies. The decision makes it mandatory for companies to provide the employees with accommodation and other dues, but not salaries, while they are made redundant.

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