UAE Ministerial Resolution with guidance for employers about COVID-19
Ministerial Resolution (NO. 279 of 2020), regarding precautionary measures in relation to COVID-19. The Resolution contains guidance for onshore based employers in relation to employment related measures that can be taken responding to the outbreak of the coronavirus.
While the Resolution is applicable to all onshore employers regulated by the MOHRE, it is yet to be seen whether it – or similar guidance – will also be implemented across the various free zones in the UAE (United Arab Emirates). It is important to know that the provisions of the Resolution do only apply to non-national employees, who do not have the same protections as nationals of the UAE under the existing legislation.
The key points of the Resolution relate to business contingency plans that might be of interest for employers to consider. The main aspects of the Resolution are summarized below:
- Working from home: It is stated within the Resolution that all onshore companies that are affected by current measures to reduce the spread of COVID-19 are allowed to implement a remote working system. Ministerial Resolution No. 281 of 2020, which was published on the 29th of March, adds guidance for employers and employees alike on how to implement a remote working system in practice.
- Paid leave: Employers may specify the dates on which employees are to utilize their annual leave, without the need for consent by the employee (in accordance with Federal Law No. 8 of 1980). Nevertheless, although the Resolution expressly confirms that it is legitimate to adopt this measure, it calls for “agreement” between employers and employees on this matter, taking into account practical effects like for example family visits overseas once travel restrictions relating to COVID-19 are lifted.
- Unpaid leave: The Resolution allows onshore employers to mutually agree a period of unpaid leave with employees; as unpaid leave is not expressly recognized under the Labour Law, its implementation by the Resolution is welcomed by many employers, and may be used as an alternative to dismissals.
- Temporary reduction of salary: As stated by the Resolution, employers may reduce salary temporarily, with the consent of the employee. The process that must be followed by employers to lawfully implement such a change in salary is also defined, including that both parties enter into an official temporary addendum to the MOHRE employment contract.
- Permanent reduction of salary: When a permanent reduction in salary is intended by the employer, the employee must give their consent, and the employer must apply to MOHRE to have the MORE employment contract officially amended.
- Redundancies: The list of measures that are sanctioned by the Resolution does not include redundancies, but the Resolution does provide procedural guidance in case that an onshore employer has a surplus of non-national employees. Under these circumstances, such employees must be offered the option of registering their details on the MOHRE´s portal for jobseekers, in order to seek alternative employment. Employers are required to continue honouring existing obligations regarding entitlements like accommodation, until the employee obtains alternative employment, or leaves the UAE.
- Hiring: Onshore employers looking to hire might have faced difficulties in doing so due to the current ban on overseas recruitment and/or travel restrictions into the UAE. They are directed by the Resolution to list all available jobs on the Virtual Labour Market and search through registered jobseekers when looking to fill any open positions, and in case of identifying a suitable candidate, applying to MOHRE in order to electronically obtain work permissions.
