COVID-19: Job loss after salary cut: What is my gratuity?

UAE Labour Law: How does final payout get affected by temporary salary cut?

Published: June 25, 2020 15:47 Huda Tabrez, Senior News Editor

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If you have just faced a temporary salary cut, what happens if you go on to lose your job? Image Credit: Gulf News

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This was the question raised by a Gulf News reader. Image Credit: Gulf News

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Gulf News spoke with Dr Hassan Elhais, who is a legal consultant based in Dubai. Image Credit: Gulf News

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The ministerial decree no. 279 of 2020 lays down the process companies can follow if they have been negatively affected by COVID-19. Read more here: https://gulfnews.com/1.1585578422824 Image Credit: Gulf News

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Article 3 of the decree provides details on the steps an employer can take if the company has been negatively affected by COVID-19. Image Credit: Gulf News

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It allows the employer to negotiate a temporary or permanent salary deduction. Image Credit: Gulf News

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For temporary reduction of salary, it needs to be implemented through an appendix in the employee's labour contract. Image Credit: Gulf News

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If the salary cut is extended, the appendix, too, should be renewed. Image Credit: Gulf News

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This appendix would state whether the salary cut would affect the employee's end of service benefits. Image Credit: Gulf News

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Picture used for illustrative purposes only. Image Credit: Gulf News

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Picture used for illustrative purposes only. Image Credit: Gulf News

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Dr Elhais had observed that the appendix to the labour contract for temporary reduction in salary includes the provision that such reduction in salary shall not affect the end of services benefits. Image Credit:

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With temporary salary cuts, as the appendices are prepared by the Ministry, it should not affect your end-of-service benefits. Image Credit:

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