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Covid-19: UAE ministry issues to regulate private sector jobs, salaries

The Ministry of Human Resources and Emiratisation (MoHRE) in UAE has passed a new resolution to regulate the jobs in the private sector in the country. The ministerial resolution No (279) of 2020 was signed by Nasser Thani Al Hamli. The resolution is passed to help the private companies affected by Covid-19 pandemic.

As per the new resolution private sector establishments 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.

The resolution is passed to help business restructure and reevaluate their contractual obligations to the employees. The resolution comes into effect from March 26.

According to the Article 6 of the resolution, private firms wishing to permanently reduce the salaries of non-UAE workers shall apply for ’employment contract details amendment’ service to obtain the ministry’s approval. To temporarily reduce the salaries of staff, companies should make a ‘temporary supplement’ to the existing employment contract.

Private firms 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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