Employment provisions relating to the COVID-19 outbreak

At the outset, it is important to note that, to date, no special provisions/exceptions have been implemented to govern the relations between (1) the establishments that have been affected by the mandatory closures relating to the COVID-19 outbreak (or any establishment facing the direct/indirect repercussions of the pandemic); and (2) their employees.

MOHRE has confirmed that their stance thus far is that the COVID-19 outbreak has not been declared a force majeure event and in the absence of special provisions relating to the exceptional measures taken as a result of the COVID-19 outbreak, the status quo remains and both employers and employees will be bound by their rights and obligations as outlined in Federal Law no. 8 of 1980 (as amended) (the ‘Labour Law’) and their relevant employment agreements.

In light of this unprecedented global pandemic, it is preferable for employers and employees to enter into discussions, negotiate and agree upon terms that are acceptable to all parties involved.

 

Can an employer terminate an employee under the current  circumstances resulting from the COVID-19 pandemic?

Yes, however, such employer will be at risk of facing arbitrary dismissal claims.

In the absence of specific provisions adopted as a result of the COVID-19 outbreak, employers can terminate their employees, however, such terminations will be governed by the provisions of the Labour Law and the relevant employment contract(s). Any such employers will likely be required to settle the employees’ dues and will be at risk of facing arbitrary dismissal claims. In circumstances where the COVID-19 has not been declared a force majeure event, employers will need to assess this risk in light of the Labour Law.

The same rules will apply as regards limited term employment contracts given that the Covid-19 outbreak has not yet been deemed a legitimate justification for termination. As such, if an employer terminates an employee as a result of the Covid-19 pandemic, the termination will be considered to be without cause and the employer may be held liable for compensating the employee.

Can an employer impose a salary reduction?

No.

Should an employer perform any deduction of salaries outside the scope of Article 60 and the employment contract, an employee can seek the recovery of any deducted amount(s) before the competent labour courts.

In a context of cooperation during these unparalleled circumstances, parties may wish to agree upon a structure suitable for both the business, which is likely to be facing financial difficulties arising out of the COVID-19 outbreak, and its employees, who need to be paid their salaries, in an effort to avoid mass terminations as a result of the pandemic.

In light of this unprecedented global pandemic, it is preferable for employers and employees to enter into discussions, negotiate and agree upon terms that are acceptable to all parties involved.

Is there a moratorium on salary payments?

 

The MOHRE has confirmed that at this point, the status quo remains, notwithstanding the COVID-19 outbreak. As such, there is no moratorium on the payment of salaries and employers must continue with making salary payments unless the employment contract provides otherwise.

The peculiarity of the situation will undeniably need to be considered by labour courts when hearing employment cases arising out of the COVID-19 outbreak.

Taking affirmative steps now is especially important as companies currently can foresee and attempt to mitigate any potential operational impacts in advance of the outbreak spreading to any new locality. Ideally, businesses will be able to plan accordingly to avoid any disruptions in their operations if the virus continues to spread.

We do represent Employees (not Employers) across all emirates in the United Arab Emirates for all kinds of cases with respect to employment issues and disputes. We can guarantee you to get your claim in your hands within a short span including the deserved compensation, if you are arbitrarily dismissed or terminated on the grounds of redundancy whether your contract is limited or unlimited, whether the company is in main land or free zone, whether the company is semi government or governmental organization. Our experts in human resources and lawyers are well versed in UAE’s relevant laws hence we give appropriate advice to our clients and represent in relevant tribunals and courts. We work on the concept of “No win, No fees”. We charge you a small advance upfront and the balance will be charged only when the claim is awarded. We can get the employee his/her all End of Benefits (Gratuity, Leave salary, Repatriation charges, any other dues like Unpaid salaries, Overtime, etc.), Notice period pay (mentioned on the labour contract) without working and 3 months Gross Salary as compensation regardless of the nature of the contract (Limited or Unlimited) and regardless of the structure of the organization (Main land companies, Free zone companies, Semi-Government organizations or Government organizations)