My salary is reduced

First of all, the Ministry of Human Resources and Emiratisation (the Mohre) has issued recently a Ministerial Resolution No. 279 of 2020 concerning the employment stability in establishments of the private sector during the application of precautionary measures to control novel coronavirus outbreak.

It may be noted that an employer affected by the precautionary measures being taken to contain Covid-19 may choose to temporarily or permanently reduce the salary of its employee.

This is in accordance with Article 2, 5 and 6 of the Ministerial Resolution, which states:

Article 2:

Establishments affected by the precautionary measures referred to above, who wish to reorganise its employment relations, shall take the following measures gradually, and in agreement with the non-national employee, as per the following:

1. Apply a remote working system.
2. Granting a paid leave.
3. Granting an unpaid leave.
4. Temporarily reduction of salary during the mentioned period.
5. Permanent reduction of salary.

Article 5:

Establishments that wish to temporarily reduce the salary of a non-national employee during the mentioned period shall take the following actions:

1. Conclude a 'Temporary Additional Addendum' to the employment contract between both parties, in accordance to the template attached to this Resolution, provided that it shall expire at the end of its term or enforceability of this Resolution, whichever comes first.
2. Renewing the addendum referred to in Clause 1 of this Article shall in agreement between both parties.
3. The addendum referred to in Clause 1 of this Article shall be executed in two copies, each party holding a copy, and the employer shall commit to present it to the Ministry whenever asked."

Article 6:

Establishments that wish to permanently reduce the salary of a non-national employee shall commit to apply to the service of 'Amend Contract' to obtain the ministry's approval as per the applicable procedures.

Article 5 of the above-mentioned Resolution states that all businesses seeking to temporarily reduce their employees salary must sign an annex to the employment contract prio to execute the deduction or the reduction, in the form provided by MoHRE.
The validity or period of the temporary arrangement will be as mutually agreed by both the employer and the employee in the terms or for as long as the Resolution remains valid, whichever is sooner.
The contract-annex recording the salary reduction can be renewed by mutual agreement of both parties.