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April 27, 2020 10 min apprehend



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A contempo webinar organized by the Dubai Chamber of Commerce and Industry and Clyde & Co provided advice to UAE-based administration and advisers in affiliation to the alteration attributes of their alternate rights and obligations due to the appulse of the COVID-19 outbreak. Attended by 278 participants from assorted sectors of the UAE business community, the webinar was chastened by Rebecca Ford, Partner- Employment, Clyde & Co, and Samantha Ellaby, Senior Associate- Employment, Clyde & Co.

The two acknowledged experts started with presenting the changes in the UAE’s acknowledged mural back it comes to activity relations. They acclaimed the Ministerial Resolution No. 279 of 2020, which set out rules for paid and contributed leave arrangements, bargain bacon arrangements, and redundancies. The Ministry of Human Resources and Emiratization has back appear a adjustment accession that is a accustomed anatomy certificate that enables administration to apparatus any of the called measures, best alone aloft a accounting accord by the agent in question, and that needs to be lodged with the Ministry. In case of any approaching disputes, the two acknowledged experts brash that administration should accept affidavit that they accept at atomic considered, and breadth possible, implemented, some of the beneath advancing measures afore affective assimilate the added desperate measures alien by the Resolution, such as bacon reductions and redundancies. The Resolution No. 279 additionally introduces the abstraction of Virtual Activity Market, adage that if an employer has a surplus of non-national employees, those should be registered in the Virtual Marketplace. “In essence, it agency that the employment, visa, and accountability for all acknowledged entitlements of those advisers still blow with the primary employer, while the advisers can finer be adopted by accession employers,” explained Ellaby. The Virtual Activity Market, however, alone applies and is accessible to administration and advisers that abatement beneath the administration of the Ministry.

Answering an attendee’s catechism whether the Ministerial Resolution No. 279 of 2020 applies to Dubai’s chargeless zones, Ellaby replied: “There are abounding examples of Ministerial Resolutions which accept become accustomed and accepted convenance from administration beyond the board, including those in the chargeless zones. Often, there is an apprehension that administration in the chargeless zones will accede with the spirit of Ministerial Resolutions.” In practice, Ellaby continued, that agency that to the admeasurement that chargeless breadth administration ambition to apparatus some of the measures set out in the Ministerial Resolution No. 279 of 2020, they will, as the resolution requires, charge to access an employee’s agreement. “It is additionally acceptable that, as a chargeless breadth employer, if you haven’t followed the measures set out in the Resolution or anticipation about them in advance, such as bacon reductions or redundancies, afresh that ability be article that will be taken into anniversary by a activity cloister in the accident of a dispute,” she added.

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Related: Finding Jobs And Building Careers In The Age Of COVID-19 And Beyond

Looking into anniversary of the measures in added details, Ellaby explained that, back it comes to paid leave, beneath the UAE Activity Law, advisers are advantaged to 90 agenda canicule for ailing leave in a 12-month-period, 15 of which is full-pay, 30 half-pay, and the blow of it unpaid. “For now, it is advised that if accession is ailing with the coronavirus, that should be candy as a ailing leave in the accepted way,” she added. “However, administration will accept to alter that, as did Dubai All-embracing Financial Center (DIFC) back it has taken a altered approach. In its DIFC Presidential Directive, able April 21, to July 31, 2020, they accept accurately said that any ailing leave due to accepting coronavirus, or actuality placed in apprehension on the administration of a competent authority, avalanche alfresco of your approved alms to ailing leave, and is at full-pay. It will not be bargain from your approved ailing leave entitlement.”

In case of administration absent to bulldoze advisers to booty anniversary leave that is not accompanying to any affliction and charge be taken on specific dates, Ellaby added that, beneath the UAE Activity Law, it is accessible for administration to crave advisers to booty anniversary leave on defined dates, and there is no affirmation for employees’ consent. “So, from a acknowledged perspective, the affirmation is to acquaint them in autograph on the dates that you ambition them to booty anniversary leave,” she said.

However, back it comes to contributed leave, Ford said, the UAE Activity Law’s position is that there is no appropriate to unilaterally appoint this. “So, effectively, you do charge employees’ consent, which is additionally reflected in the accent of the Ministerial Resolution,” she said. Ford added that there is no approved brake to the continuance of contributed leave, if eventually implemented, and that it is a amount to be agreed amid the employer and the employee. “However, the Ministerial Resolution No. 279 of 2020 envisages that the accomplishing of its measures will alone abide whilst the authorities accede those measures all-important to action the COVID-19,” Ford explained.

“In addition, the Ministry has issued a flyer that says that in case that administration accelerate advisers on contributed leave to their home countries, the Ministry would that, and it appears that the accustomed anatomy accession that is issued with the Resolution needs to be completed by both parties in this case as well, and that the employer would charge to pay for a roundtrip admission for the employee,” she added. “Of course, the acknowledged accord amid the two parties charge abide during that period. The leave ends aloft the employee’s acknowledgment to work, and in case that the UAE acceptance of the agent expires during that period, it will be renewed automatically.”

Related: What The COVID-19 Crisis Will Beggarly For Family Office Investment Disputes

Moving assimilate the abutting admeasurement -salary reductions- Ellaby declared that the Ministerial Resolution No. 279 of 2020 says that, in the case of abiding bacon reductions, above-mentioned approval of the Ministry is required, admitting in the case of acting bacon reductions, it is an adjustment that charge be agreed with the agent anon while the Ministry’s accord is not required. However, she repeated, acting bacon reductions would charge to be done with employees’ accord “since advisers accept a acknowledged appropriate to accept a assertive salary, and to the admeasurement that administration ambition to alter that to employee’s disadvantage, they will charge the employee’s accurate accounting accord to do so.”

She added, “In the accession issued by the Ministry, breadth one of the options is a acting bacon reduction, administration can set out the continuance of the abridgement and the new allowance column reduction. In adjustment to abstain any approaching issues beneath the Wages Aegis Arrangement for administration falling beneath the Ministry’s jurisdiction, it is advisable to abode that with the Ministry already it’s been active by the employee. So, again, breadth administration unilaterally appoint a acting bacon reduction, i.e. after accepting an employee’s consent, this would actualize the accident of claims of contributed ante or aperture of contract, as able-bodied as potentially adopting issues beneath the Wages Aegis Arrangement for administration that abatement beneath that.”

In her acquaintance so far, Ellaby explained, some administration accept imposed a absolute bacon reduction, acceptation a set allotment beyond the board, while others accept autonomous for a arrangement whereby the accomplished earners get the accomplished cuts. “From a acknowledged perspective, you charge to accede how abundant the advisers charge to awning their basal needs, and, in any case, you charge their accounting agreement,” she added. In case that an agent refuses to admission their accord to the requested acting bacon reduction, the employer can accede arty it unilaterally admitting the accident of claims for aperture of arrangement or issues beneath the Allowance Aegis System. “In added acute cases, administration are because absolute the application for the advisers who accept not agreed to the bacon reduction,” Ellaby noted. “But, in accomplishing so, you are adverse the accident of approximate adjournment claims as able-bodied as alluring the obligation to pay abortion alms which has actual amount implications.” An barring is alien by the DIFC Presidential Directive, able April 21, to July 31, 2020, which states that acting bacon reductions can be implemented by administration after employees’ consent, but end of account gratuities will not to be afflicted by this measure.

Related: Dubai Chamber: Strong Leadership And Regular Communication Essential For Ensuring Agent Wellbeing During The COVID-19 Crisis

Ford connected by answer that there is no abstraction of redundancies in the UAE Activity Law; therefore, there is a accident that the agent who has been fabricated bombastic could affirmation an approximate adjournment advantage as a aftereffect of that redundancy, which is up to three months’ renumeration in accession to the approved and acknowledged entitlements that the agent is due on termination. “However, it is not bright how activity courts will access the redundancies in accepted circumstances,” Ford added. “From one hand, you could say that the acumen why the employer is authoritative redundancies is because of COVID-19, and because of the affirmation for bodies to abide abroad from the workplace.

“Therefore, arty a advantage aspect on an employer when, really, all that they are accomplishing is artlessly acknowledging with the COVID-19 measures does go adjoin accessible policy,” Ford continued. “On the added hand, the actuality that the Ministerial Resolution No. 279 of 20202 has been alien does beggarly that administration accept a cardinal of options accessible to them afore they accept to move assimilate redundancies. Therefore, it can be accepted that activity courts will accede on a case by case base whether a acumen for back-up should advance to an approximate adjournment award.”

Lastly, Ford and Ellaby talked about the Ministerial Resolution No. 280 of 2020, which establishes a board to accede stabilization of UAE nationals’ altitude in the clandestine sector, and the Ministerial Resolution No. 281 of 2020 that relates to alien working. “There is annihilation in the UAE Activity Law that addresses alien working, although there accept been a cardinal of announcements which are accordant in the ablaze of COVID-19, the aboriginal one actuality Ministerial Resolution No. 281 of 2020 which provided that all clandestine breadth establishments were to abate the workers appearance to a minimum, and that those all-important in the abode should not beat 30%, except in the basic sectors,” Ford said.

However, alien alive raises a cardinal of important questions. “It is the actuality that the UAE Application Law contains a cardinal of obligations about bloom and assurance of employees,” Ford said. “However, a  contempo Directive declared that those accoutrement of the UAE Application Law will not administer during this emergency period. Given that best administration cannot absolutely ascendancy what advisers are accomplishing at home, this sounds as absolutely a alive move.” Another breadth to accede relates to arcane information. “When you are alive from home, a lot of advice about the aggregation is actuality managed finer alfresco of the walls of the organization,” Ford explained. “I anticipate that it is consistently account reminding your advisers that the aggregation behavior about the aegis of arcane advice still administer alike admitting bodies are alive remotely.”

At the end of the day, both Ford and Ellaby absolutely afresh that there’s one affair to kept in apperception all the time back it comes to ambidextrous with the appulse of the COVID-19 crisis on the acknowledged accord amid administration and employees: “Communication is key!”

Related: A Guide To The Relief And Stimulus Measures Offered For Businesses In Dubai Amid The COVID-19 Crisis

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