UAE: After Reducing Salaries, What Will Happen to Private Sector Employees' Gratuity?

Published April 2nd, 2020 - 02:00 GMT
UAE: After Reducing Salaries, What Will Happen to Private Sector Employees' Gratuity?
Everything depends on the agreement between the employer and the employee. (Shutterstock)
Highlights
Some common questions about private sector jobs and salaries answered.

What should I do if my employer reduces my salary during the coronavirus pandemic? What if my company forces me to go to work even when my agreement says I can work from home?

Lawyer Hani Hammouda of Kefah Al Zaabi Firm for Advocacy and Legal Consultancy answers some readers' questions related to the ministerial decree No (279) of 2020 on regulation of private sector jobs and salaries.

Q. If my employer reduces my salary during the Covid-19 precautionary measures, can he keep it reduced once the precautions are lifted?
It depends on the agreement between the employer and the employee.

Q. How is gratuity calculated if the salary is reduced permanently?
Gratuity is calculated in full for all the years preceding the new decree. That is one month for every year in addition to all dues, including the cumulated leaves and overtime.

Q. I am an accountant in a retail business in the private sector. Should we pay salaries to our sales staff who are now on leave because of the precautionary measures?
The staff should get their full salaries unless the employer says otherwise.

Q. If an employee has completed seven years and is currently in the 8th year of the job, will the amendment of employment contract affect the payment of gratuity for his completed years of service?
He is entitled to his full gratuity based on the salary he collected in the years prior to the new decree. After the decree, his revised salary can be decided by an agreement between the two parties.

Q. My passport is locked in the HR department of my company that is closed until further notice. I requested it from a PRO in vain. What should I do?
By law, the employer should not withhold the employee's passport. You can file a request online at the Dubai Courts portal.

Q. My company is making it mandatory to go to office even though according to the original agreement I can work from home. I am forced to take public transportation. What should I do?
You can reach out to the Ministry of Human Resources and Emiratisation (MoHRE) and file a complaint. They will sort it out for you.

Q. How to register in the virtual job market system?
You can check MoHRE's electronic and smart systems.


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