UAE - Ministerial Resolution No. 279 of 2020 relating to employment and COVID-19
To address the uncertainty surrounding the effects of COVID-19 on the domestic employment market, the Ministry of Human Resources and Emiratisation (MOHRE) (the “Ministry”) has issued Ministerial Resolution No. 279 of 2020 on Employment Stability in the Private Sector containing guidance for onshore based employers as to employment related measures they can take in response to the global Covid-19 (the “Resolution”).
The Resolution is effective 26 March 2020 and the measures introduced will remain in place while other precautionary measures in relation to Covid-19 remain active.
The Resolution aims to provide clarity on the various issues arising out of the impact of COVID-19 on businesses and their employees.
Key Points:
- The Resolution has a broad spectrum – it applies to all establishments registered with MOHRE
- It applies to all non-national workers
- Steps that businesses/employers can take in terms of reorganizing their work in agreement with the employees are defined and itemized:
- Working from home : The Resolution states that all onshore companies affected by current measures to reduce the spread of Covid-19 may implement a remote working system.
- Paid leave : employers may specify the dates on which employees are to utilise their annual leave, without the need for employee consent. This measure may be adopted by employers but the Resolution calls for “agreement”.
- Unpaid leave : The Resolution allows onshore employers to mutually agree a period of unpaid leave with employees. which introduces flexibility for employers as unpaid leave is not expressly recognized under the Labour Law and so implementing it previously carried a degree of uncertainty.
- Employers are able to register surplus labor to the Virtual Labour Market
- The process needed to temporarily or permanently reduce salaries for employees is defined
- Temporary reduction of salary : Pursuant to the Resolution employers may reduce salary temporarily, with employee consent. The Resollution further determines a process to be followed by employers in order to lawfully implement such change.
- Permanent reduction of salary : In the event employers wish to permanently reduce salary, the Resolution states that such a reduction must be agreed to by the relevant employee(s) and can only be implemented by the employer applying to MOHRE to have the MOHRE employment contract officially amended.