GCC CountriesUAE

Coronavirus: UAE Companies Allowed to Lay Off Staff, Cut Salary

The Ministry of Human Resources and Emiratisation has allowed private sector businesses affected by the COVID-19 measures to restructure the contractual relationship with employees. These contractual changes are to be made in mutual agreement through gradual procedures.

Under the decision approved by Nasser Thani Al Hamli, Minister of Human Resources and Emiratisation, businesses affected by precautionary measures taken to prevent the spread of coronavirus and seeking to reshuffle their business structure shall gradually adopt the following actions, in agreement with their employees:

– Implementing a remote work system
– Granting employees paid leave
– Granting employees unpaid leave
– Temporarily reducing salaries during the aforementioned period
– Permanently reducing salaries

New decree on private sector jobs will be with immediate effect.


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