New notifications of Ministry of Labour UAE

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Highlights of the resolution

The resolution grants companies that are affected by COVID-19, the right to restructure their contractual relationship mutually with employees according to the following gradual five procedures:

  • implementing a remote work system
  • granting employees a paid leave
  • granting employees unpaid leave
  • reducing salaries temporarily during the aforementioned period – in such a case, the company must sign an additional annexure that is limited to the agreed-upon term, or as long as the ministry’s resolution remains valid, whichever is earlier.
  • reducing salaries permanently – in such a case, the company should first obtain the ministry’s approval by applying for a modification of an employment contract’s data. 
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