Scope of Ministerial Resolution No. 279 of 2020
Issued by the Ministry of Human Resources and Emiratisation (MOHRE), Ministerial Resolution No. 279 of 2020 was designed to mitigate the economic impact of the COVID-19 pandemic on the private sector. It provided a legal framework for employers to restructure employment contracts temporarily, ensuring business continuity while protecting employee rights under exceptional circumstances.
Permissible Measures for Employers
The resolution outlined five progressive measures employers could take: implementing remote work, granting paid leave, granting unpaid leave, temporary salary reductions, and permanent salary reductions. Crucially, any reduction in salary required the formal consent of the employee through a 'Supplemental Addendum' to the employment contract, which had to be registered with MOHRE.
Redundancy and the Virtual Labour Market
For businesses with a surplus of non-citizen employees, the resolution mandated the registration of such employees on the Virtual Labour Market system. This allowed other employers to recruit from the domestic talent pool, thereby maintaining the residency status of workers while reducing the financial burden on struggling firms. These measures remain a significant precedent for how the UAE legal system handles force majeure events in labor relations.