Thank you for your reading and interest in the news Coronavirus: salary cuts imposed during outbreak will not affect end of service gratuity and now with details
Hind Al Soulia - Riyadh - 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.
Updated: June 2, 2020 12:37 PM
These were the details of the news Coronavirus: salary cuts imposed during outbreak will not affect end of service gratuity for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.
It is also worth noting that the original news has been published and is available at The National and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.