Salary cuts during the Covid-19 outbreak will not affect the end of service gratuity according to the Ministry of Human Resources and ‎Emiratisation‎. Getty Images
Salary cuts during the Covid-19 outbreak will not affect the end of service gratuity according to the Ministry of Human Resources and ‎Emiratisation‎. Getty Images
Salary cuts during the Covid-19 outbreak will not affect the end of service gratuity according to the Ministry of Human Resources and ‎Emiratisation‎. Getty Images
Salary cuts during the Covid-19 outbreak will not affect the end of service gratuity according to the Ministry of Human Resources and ‎Emiratisation‎. Getty Images

Coronavirus: salary cuts imposed during outbreak will not affect end of service gratuity


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Salary cuts imposed due to the Covid-19 outbreak will not affect end of service gratuities for workers, officials confirmed.

The Ministry of Human Resources and Emiratisation said employees who lost pay and were subsequently dismissed during the pandemic would have financial settlements based on their contracts prior to any reduction.

Employees who have completed at least one year of service in an organisation are entitled to an end-of-service gratuity, according to UAE labour law.

The amount is calculated based on the number of days worked while the days of absence from work without pay will not be included.

Employees should be compensated with 21 days of pay for each of their first five years of service and 30 days for every additional year. The maximum gratuity should not exceed two full years' pay.

The ministry introduced new legislation in March setting out the rights of employers and employees during the pandemic.

The authority said the measures - including temporary and permanent reductions in salaries and issuing unpaid leave - must be agreed upon by employers and non-Emirati employees alike.

In the case of a permanent salary reduction, the employer must obtain the ministry's approval.

“If employers are facing difficult times, then it is important to consult with employees and ensure that they are on board and fully understand the rationale behind why they are looking to take such measures,” said Shiraz Sethi, regional managing partner and co-head of employment at law firm DWF Middle East, at the time.

The Ministry has said end of service gratuity will be calculated based on the employee’s last pay before the salary reduction.

The confirmation came after the authority responded to an inquiry sent by an employee who was laid off after one month after a 30 per cent pay cut was implemented.

In April, a senior judge said that UAE companies must continue to pay staff their housing allowance if they are made redundant.

Abdulla Al Nuaimi, head of the Abu Dhabi Labour Court, reiterated that federal legislation brought in late last month guaranteed workers their rent would be covered if they lost their jobs.

The ruling is designed to prevent tenants facing an uncertain financial future being evicted by their landlords.

RESULT

Shabab Al Ahli Dubai 0 Al Ain 6
Al Ain: Caio (5', 73'), El Shahat (10'), Berg (65'), Khalil (83'), Al Ahbabi (90' 2)

Brief scores:

Huesca 0

Real Madrid 1

Bale 8'

Tips for job-seekers
  • Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
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David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East

Anghami
Started: December 2011
Co-founders: Elie Habib, Eddy Maroun
Based: Beirut and Dubai
Sector: Entertainment
Size: 85 employees
Stage: Series C
Investors: MEVP, du, Mobily, MBC, Samena Capital

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Always use only regulated platforms

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Courtesy: Crystal Intelligence

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The specs
Engine: 2.5-litre, turbocharged 5-cylinder

Transmission: seven-speed auto

Power: 400hp

Torque: 500Nm

Price: Dh300,000 (estimate)

On sale: 2022 

What is the definition of an SME?

SMEs in the UAE are defined by the number of employees, annual turnover and sector. For example, a “small company” in the services industry has six to 50 employees with a turnover of more than Dh2 million up to Dh20m, while in the manufacturing industry the requirements are 10 to 100 employees with a turnover of more than Dh3m up to Dh50m, according to Dubai SME, an agency of the Department of Economic Development.

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ATP Dubai Championships on Monday (x indicates seed):

First round
Roger Federer (SUI x2) bt Philipp Kohlschreiber (GER) 6-4, 3-6, 6-1
Fernando Verdasco (ESP) bt Thomas Fabbiano (ITA) 3-6, 6-3, 6-2
Marton Fucsovics (HUN) bt Damir Dzumhur (BIH) 6-1, 7-6 (7/5)
Nikoloz Basilashvili (GEO) bt Karen Khachanov (RUS x4) 6-4, 6-1
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TOURNAMENT INFO

Women’s World Twenty20 Qualifier

Jul 3- 14, in the Netherlands
The top two teams will qualify to play at the World T20 in the West Indies in November

UAE squad
Humaira Tasneem (captain), Chamani Seneviratne, Subha Srinivasan, Neha Sharma, Kavisha Kumari, Judit Cleetus, Chaya Mughal, Roopa Nagraj, Heena Hotchandani, Namita D’Souza, Ishani Senevirathne, Esha Oza, Nisha Ali, Udeni Kuruppuarachchi

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Frankenstein in Baghdad
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