(ii) extend the “temporary supplement” in agreement between you and your employer; and in the CFD, if there is a reduction in an employee`s salary, each GSS (as it was known prior to the implementation of the DIFC Employee Workplace Savings Plan) accumulated in the DEWS system and transferred to the DEWS system will be based on the employee`s salary by March 1. As a result, workers are protected by the fact that a wage reduction does not affect accumulated GSSs and that this amount can be transferred to the DEWS system, or that the worker is entitled to the termination of his or her employment relationship. The same principle applies to deWS contributions during the emergency period – payment is based on basic salary by March 1, 2020. Fixed-term contracts are very different from fixed-term contracts. The termination of a fixed-term contract should take place only for the reasons covered by Article 120 of the UNITED Arab Emirates Labour Act or after the expiry of the contract term. The termination of the employment contract for other reasons is entitled to the worker a maximum of three months` compensation. Question: I am employed by a company on the mainland in Dubai Media City, Dubai. On April 15, I received an email from my employer informing me of the 35% reduction in my base salary until the current Covid 19 pandemic prevails. The reduction will take effect on April 1. Can companies reduce their wages from a retroactive date? Does the employer have the right to reduce my salary by saying it is “temporary” but for an indeterminate period? My job refers to the sale; and the commission is one of the components of my salary.

My employer reduces my salary and explains that market conditions are not good. However, my revenue goals are not reduced by my employer. Severance pay applies when an employment contract is terminated as a result of a restructuring and/or business closure. All severance pay would include ESG and accrued and unused annual leave and salary instead of termination. In the United Arab Emirates, there is also a general precedent that the worker can claim compensation for arbitrary dismissals, since the dismissal is not due to the employee`s benefit or misbehaviour. The employee may be entitled to a maximum salary of three months` salary. It is therefore important that an employer conducts a thorough procedure, while retaining clear and concrete documents, in order to support the reasons for the dismissal. As a temporary alternative, Mohre and DIFC introduced the concept of a “virtual labour market”.

The objective is to allow employers to record data on workers who are under employment/sponsorship but who are at risk of losing their jobs. These workers may work for other employers, provided that their housing allowance and other benefits (excluding wages) continue to be paid by the original employer, despite the introduction into a third party. Almost a kind of secondment where an employee can provide services to a third party without terminating his or her employment with his sponsor. The resolution allows the “gradual” application of the following steps, with the worker`s agreement: 2.