Hi. If an Abu Dhabi government company reduces...

It should be noted that after reviewing your inquiry and legal scrutiny we would like to inform you that
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.

The reduction may have an impact on gratuity from the date the reduction application may be applied
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