Paid and unpaid leave

In line with article 76 of the UAE Labour Law (Federal Law No. 8 of 1980), an employer may impose a period of paid leave and deduct this from the employee’s annual leave entitlement. However, this would not apply to unpaid leave. For unpaid leave, employee consent would be required.

Temporary salary reduction

Employers may impose a temporary salary reduction with the employee’s written consent. Under article 5 of Resolution 279, companies wishing to temporally reduce employees’ salaries must sign an annex to the employment agreement, a sample agreement has been provided by the Ministry. The temporary arrangement will remain in effect for either the agreed upon term or until Resolution 279 is rescinded, whichever is earlier. The annex may also be renewed by mutual agreement. The addendum must be issued in two copies, one for each party, and available for submission to the Ministry whenever requested.

Permanent salary reduction

The final action available to employers is a permanent salary reduction. Where the salary is to be permanently reduced, the employer will need to go one step further and obtain the Ministry’s approval by submitting an application for the employment contract to be amended.

Excess employees

Under article 3 of the Resolution, where an employer has identified a ‘surplus’ of non-UAE national employees, the employer is required to register the employees’ details on the Ministry’s portal for job seekers, the Virtual Labour Market System.

These employees can then be taken on by other employers within the UAE, who may be looking to recruit given the current suspension of foreign recruitment. The new employer may then hire the employee under a work transfer permit, temporary work permit, or part-time work permit.

The original employer will be obliged to continue to provide the employee with accommodation and benefits other than basic salary until the employee secures employment with another establishment or leaves the UAE.

When is the resolution effective?

Resolution 279 came into effect on 26 March 2020 and is expected to remain in effect until the precautionary COVID-19 measures are lifted in the UAE.

Resolution 281

Who does the resolution apply to and who is exempt?

All private sector companies with the exception of those in the following sectors and industries:

• Health care sector, including hospitals, clinics, pharmacies, pharmaceutical companies, and all other medical services
• Financial services sector, including banks, exchange outlets, and money transfer companies
• Food industry, including food manufacturers and distributors
• Hospitality sector, including hotels, restaurants, and catering companies
• Manufacturers of sterilisation and cleaning products and medical equipment
• Infrastructure projects, including water services, sanitation services, electricity and communication networks, building and construction sites, catering companies, and energy companies

What does Resolution 281 state?

Resolution 281 requires all private sector companies (other than those in the exempt sectors) to reduce workers’ attendance to the minimum necessary to continue business, which the Resolution deems should not exceed 30 per cent of the total number of workers.

Companies are also required to reduce the number of customers visiting their premises to a maximum of 30 per cent of capacity, and implement procedures to ensure safe distancing among customers and continuous disinfection of devices and facilities.

The ability to work remotely applies to all employees whose jobs do not require their presence in the workplace, with priority given to the following categories of employees:

• Pregnant women
• Workers aged 55 and above
• People with disabilities
• Workers suffering from respiratory or chronic diseases
• Female workers who are mothers of children in the ninth grade or below

What are employers’ obligations under Resolution 281?

Additionally, there are specific requirements for employers across all sectors (many of which relate to employers with employees who live in labour accommodation). These requirements include:

• applying the procedures mentioned in the temporary guidelines attached to the Resolution (see below);
• ensuring workers whose jobs require their presence in the workplace or labour accommodation comply with the necessary preventive and precautionary measures;
• providing screening points at entrances to labour accommodation and offices, so that workers can be checked for virus symptoms (including checking their temperature) twice a day. Workers who have (or are suspected of having) symptoms are prohibited from going to work or entering the labour accommodation, and must be referred to health care facilities, which will take the necessary measures;
• providing a method for transporting workers to and from their accommodation to their workplace, while ensuring that the vehicle’s seating capacity does not exceed 25 per cent and that safe distancing measures are maintained;
• banning gatherings and suspending all cultural, sporting, and social activities at labour accommodation;
• reducing the number of workers in the dining halls at labour accommodation during meal times, and ensuring a safe distance of two metres between each worker is maintained;
• reporting cases of workers showing (or suspected of showing) virus symptoms; and
• implementing the health and safety controls issued by the competent authority if goods and services are delivered to customers.

Has the Ministry issued guidance on regulating remote working?

Yes. In order to ensure the continuity of business during the application of the precautionary measures to limit the spread of COVID-19, the Ministry has attached to Resolution 281 the Temporary Guide Regulating Remote Work (the Guide). The Guide includes measures to be taken by both employers and workers during the current emergency.

What are employers’ obligations under the guide?

Employers are required to:

• provide the technical equipment necessary for employees to be able to work remotely using smart and electronic systems;
• determine mechanisms, standards of efficiency and productivity, and timeframes for all tasks assigned to workers;
• determine mechanisms for the management of remote working, such as working hours, whether fixed or flexible according to the day, week, or month;
• ensure the availability of a secure technological framework for carrying out remote working, taking into account measures relating to maintaining the privacy and confidentiality of data and granting the appropriate access permissions for the IT systems;
• follow up with remote workers electronically in order to ensure that they work their scheduled hours and complete the tasks assigned to them; and
• facilitate remote workers’ communication with colleagues and line managers, as required to perform tasks and access the necessary information and systems to perform their work, including providing video conference applications.

What are employees’ obligations under the guide?

Employees are required to:

• report to the workplace when required;
• perform tasks according to the specified timeframes;
• be available to answer all calls and emails, and respond to communications by any other means, to ensure continuous communication according to the requirements of work;
• maintain the confidentiality of all business information and documentation, and utilise the remote working hours to complete the required tasks;
• provide any supporting evidence required by the employer to demonstrate task completion and productivity;
• look after any devices provided by the employer for the purposes of remote working and return them whenever required; and
• read and comply with the privacy policy for remote workers.

Conclusion

We note that while these resolutions provide some guidance, they are untested in the courts and do not provide answers to all the challenges that employers are facing at this time. We therefore advise companies to obtain legal advice when considering restructuring their businesses, reducing costs in the current business climate, and managing employee relations.

As the situation is rapidly evolving, the UAE is likely to continue to introduce new measures and clarifications. We will continue to monitor developments closely and provide updates accordingly.

Our Reed Smith Coronavirus team includes multidisciplinary lawyers from Asia, EME and the United States who stand ready to advise you on the issues above or others you may face related to COVID-19.

For more information on the legal and business implications of COVID-19, visit the Reed Smith Coronavirus (COVID-19) Resource Center or contact us at COVID-19@reedsmith.com.