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UAE: Employment Update in the Private Sector in the Wake of Covid-19

08-04-2020

UAE MINISTERIAL RESOLUTION NO. 279 OF 2020

In light of the COVID-19 situation in the United Arab Emirates (UAE), on 26 March 2020, the Ministry of Human Resources and Emiratisation (the Ministry) issued Ministerial Resolution No. 279 of 2020 Regarding the Stability of Employment in Private Sector During the Period of Applying Precautionary Measures to Contain the Spread of the Novel Coronavirus (the Resolution), effective immediately.

APPLICATION

The Resolution, which was issued to assist private businesses in lieu of the financial and economic uncertainties during the UAE’s precautionary measures related to COVID-19, applies to all mainland and free-zone companies and non-UAE national employees, excluding UAE national employees and companies in the Dubai International Financial Center (DIFC) and Abu Dhabi Global Market (ADGM).

PERMITTED ACTIONS

The Resolution outlines guidelines to help private companies navigate during the UAE’s the period of applying precautionary measures, subject to any further announcements by the government.

Per Article 2, companies may gradually apply the following steps, subject to express consent and agreement with the employee:

  1. Implementation of a remote working system;
  2. Provision and granting of paid leave(s);
  3. Provision and granting of unpaid leave(s);
  4. Apply temporary salary reduction;
  5. Apply permanent salary reduction.

MINISTRY’S VIRTUAL LABOR MARKET

Further, companies retaining employees unable to work or have made employees redundant, are to register the respective employees on the Virtual Labor Market online system, a Ministerial portal which matches candidates with suitable vacancies in other UAE private companies. Employers are to continue to provide housing and other applicable obligations to the employees, excluding salaries, until the respective employee either transfer to another company or leaves the UAE.

HOW CAN TLG HELP?

Our Corporate & Commercial Team is pleased to provide with you further information, answer your questions and support with assessing applicability and implementation of the Resolution on your Company or assist with business restructuring.

Please feel free to contact our Corporate & Corporate Department at: corporate@tlg.ae.