If a company wishes to reduce a staff members salary, reduce hours (temporarily or permanently) or put the staff member on temporary unpaid leave, then this must be mutually agreed in writing by the staff member and the company. The letter agreement must be made voluntarily by the staff member.
Initially there was no mechanism to register these changes officially with Ministry of Human Resources and Emiratisation (MOHRE) – The UAE Ministry of Labour - previously this could only be done by submitting the signed letter from the employee. However following the release of the Ministerial Resolution No. 279 of 2020 to assist companies during the COVID Pandemic Click here for Resolution PDF from Thursday 30th April MOHRE are now accepting the registration of these changes to employment terms through the MOHRE system using a Temporary Supplementary Annex – Click here for ANNEX PDF.
Therefore all mainland companies should submit the Temporary Supplementary Annex to MOHRE for each staff member that has agreed to modified employment arrangements, so as to prevent any blocks or fine from MOHRE that may be levied in the future - for example if WPS payments are below the required monthly threshold.
PRO Partner Group can provide support and guidance on this process to assist in obtaining the completed Annex and uploading and registering this with MORHE to ensure compliance.
Book a call with one of our company formation specialists.