UAE Stop Salary for these Employees

In our previous guide we talk about how an employee can lose his gratuity, today we came with an idea to save low salary workers from an unexpected incident which can hit them very bad especially during the disaster of coronavirus outbreak.

Our loyal readers know that we always write for them, in current crisis companies are taking benefit from MOHRE recently approved annex (new contract) after which an employer can cut salary from employee by taking sign from him/her on this new agreement. so once you signed you will not be paid. Let's discuss it more.

We are not against the employers, we want to you to be sure before you sign it, read what is written in newly approved ministerial resolution no 279 for the year of 2020 and not only we the Ministry of Human Resources and Emiritization also said in a statement that the new contract can only be valid if both parties (employee and employer) mutually agree on it. So sign if you understand, if not discuss it with company HR or call MOHRE Toll Free for assistance.

Under what conditions can employers reduce salary of an employee in UAE?

In view of the ongoing Covid-19 pandemic and the preventive measures being taken to contain its spread, the MOHRE has issued Ministerial Resolution No (279) of 2020 concerning the employment stability in establishments of the private sector during the application of precautionary measures to control covid-19 outbreak.

It may be noted that an employer affected by the precautionary measures being taken to contain Covid-19, he may choose to temporarily or permanently reduce the salary of its employee.

This is in accordance with Article 2 (4) and (5) of the Ministerial Resolution, which states:

Establishments affected by the precautionary measures referred to above, who wish to reorganize its employment relations, shall take the following measures gradually, and in agreement with the non-national employee, as per the following:

1. Apply a remote working system.

2.Granting a paid leave.

3.Granting an unpaid leave.

4.Temporarily reduction of salary during the mentioned period.

5.Permanent reduction of salary.

Temporary Salary Reduction:

However, it may be pertinent to note that for your employer to temporarily reduce your salary during the application of precautionary measures, you and your employer shall have to agree to a 'Temporary Additional Addendum' to the original MOHRE employment contract.

Mutually Signed Agreement:

This mutual signed agreement between you and your employer will have 2 copies. One copy being in your possession and the other for your employer and your employer shall be obliged to present the Temporary Additional Addendum to ministry of labour when required.

This is in accordance with Article 5 of Ministerial Resolution, which states:

Establishments that wish to temporarily reduce the salary of a non-national employee during the mentioned period shall take the following actions:

1. "Conclude a 'Temporary Additional Addendum' to the employment contract between both parties, in accordance to the template attached to this Resolution, provided that it shall expire at the end of its term or enforceable of this Resolution, whichever comes first.

2. Renewing the addendum referred to in Clause 1 of this Article shall in agreement between both parties.

3. The addendum referred to in Clause 1 of this Article shall be executed in two copies, each party holding a copy, and the employer shall commit to present it to the Ministry whenever asked."

Permanent Salary Reduction:

Further, if an employer chooses to permanently reduce the salary of its non-national employee, the employer shall first have to apply for the 'Amend Contract'service to obtain the approval from MOHRE. This is in accordance with Article 6 of the Ministerial Resolution, which states:

“Establishments that wish to permanently reduce the salary of a non-national employee shall commit to apply to the service of 'Amend Contract' to obtain the ministry's approval as per the applicable procedures."

Based on the aforesaid provisions, your employer is permitted to reduce your salary temporarily or permanently provided you and your employer mutually agreed to do so.

Lay off Extra Staff:

Please note that in same ministerial resolution the companies are allowed to lay off additional staff during coronavirus crisis period. The decision, which will be effective from the date of issuance - March 26, states that affected companies having more employees than they need must register the additional staff on the virtual job market, so that they can be recruited by other businesses.

Link: Check Your Visa Validity Online

But businesses who wish to lay off additional staff will remain obliged to provide these employees with accommodation and other dues, except for salary, as long as they are in the country or until they are hired by other businesses.

Link: Early Leave for Employees

Copy of Ministerial Resolution No. 279 of 2020:

Below is the copy of Ministerial resolution No (279) of 2020 (English + Arabic) on employment stability in Private sector during the period of Application of Precautionary measures to curb the spread of coronavirus.

Sample of Additional Temporary Annex:

Below is the copy of 'Temporary Additional Addendum' which will be given to employees to sign.

Option for Affected Job Seekers in UAE:

In case your company asked you to look for another job and we cannot pay you and you already have signed the new contract, we suggest you to register with MOHRE Virtual Labour Market so you can get hired by registered companies in UAE without facing fake jobs scam.