DMCC Issues COVID-19 Employment Guidelines

The Dubai Multi Commodities Centre (DMCC) has issued COVID-19 Employment guidelines No. 1/2020.

During the period of the COVID-19 crisis employees will be allowed to work remotely except key employees working in vital industries; Employers can place employees on paid leave and employees’ consent is not required to do this. Parties can also mutually agree to reduce the employee’s Basic Salary for a defined period, and this period can be renewed by mutual consent. The reduction in Basic Salary should not affect the employee’s Allowances; and parties can mutually agree to a period of unpaid leave to be renewed by mutual consent.

The measures in these Guidelines do not affect the employee’s entitlement to medical insurance, the continuation of their residence visa and work permit, and the right to acompany provided accommodation and transportation.

Employers are discouraged from filing absconding reports against terminated employees because of any visa cancellation delays during the crisis. All agreements implementing the measures covered by these Guidelines should be made in writing.

In addition, an employee’s end of service gratuity under Article 132 of Federal Law No. 8/1980 should not be affected by any temporary reduction in their Basic Salary. The end of service gratuity should continue to accrue according to the employee’s Basic Salary prior to the temporary reduction and if an employee is terminated during the COVID-19 Period the end of service gratuity will be based on the last drawn Basic Salary prior to the temporary reduction. Any period of unpaid leave shall be deducted from the total period of service for the purposes of the End of Service gratuity calculation.

Employers can also implement measures to monitor employees during any period of remote working provided the measures do not infringe the employees’ right to privacy. Employers can also collect and share employees’ personal data in line with requests by the competent UAE authority for any reasonable purpose related to the health, safety and employee well-being. Full story

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