Are you finding it challenging keeping up to date with the flurry of requirements and legislation being issued by the authorities of late? You would be forgiven if you are given the rapid pace in which changes are being implemented in response to the novel coronavirus (COVID-19) outbreak. To ease the burden, we set out below a summary of the recent legislative and general changes requiring employers' attention across the GCC. Clyde & Co will regularly update this publication as matters progress.
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SUMMARY / ACTION |
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UAE | ||
Ministry of Human Resources and Emiratisation Resolution No. 281 of 2020 on remote working in the private sector during the application of precautionary measures to limit the spread of COVID-19 |
This resolution limits the percentage of an employer's workforce that can physically continue to work from the employer's premises to 30% (companies performing certain activities are exempt from this requirement, such as, food and health). Companies are also required to limit the number of customers visiting their premises to 30% of their seating capacity and to strictly observe health and safety precautions. For those employees working on the premises, employers are required to implement protective measures, including providing screening devices on the premises to take employee temperature and check symptoms of the virus twice a day, and refer suspected cases to the health authorities. For those employees working remotely, employers priority should be given to pregnant women, those aged 55 and above, those with disabilities, respiratory or chronic diseases and female workers who are mothers of children in grade 9 and below. Employers are also required to comply with the temporary guide for remote working in private sectors which requires, for example, that the employer provides the relevant technical equipment to facilitate home working and determining mechanisms for the management of remote working. |
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Ministry of Human Resources and Emiratisation Resolution No. 280 of 2020 establishing a committee to monitor the stability of the conditions of locals working in the private sector |
This resolution is tasked with reviewing measures for promoting employment of nationals in the private sector which includes:
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Ministry of Human Resources and Emiratisation Circular No. 4 of 2020 concerning the stability of the national workforce conditions in the private sector during the period implementation of precautionary measures to limit the spread of the Novel Coronavirus |
The circular restricts the ability to restructure UAE national workforce by requiring certain steps to be followed, including: (i) notifying MHRE through "Tatween" of its desire to reorganise; (ii) refering the matter to the committee established pursuant to Resolution No. 280 of 2020 (see above); (iii) adopting alternative measures as discussed and proposed by the committee; and (iv) not proceeding with a restructure until alternative measures by the committee have been implemented, as agreed with the employee. | |
Ministry of Human Resources and Emiratisation Resolution No. 279 of 2020 concerning the employment stability in private sector establishments |
The resolution encourages employers to consider alternative means of reducing staffing costs rather than terminations and makes clear that certain measures should be with an employee's express written agreement. Pursuant to the resolution, employers may mutually agree any of the following options with their non-national employees:
The resolution envisages that the measures will be implemented gradually in turn, starting with remote working and ending with permanent reduction in salary. The resolution also introduces a concept of 'sharing employees' whereby employers with a "surplus" of non-national employees may register them on the ministry's newly established 'Virtual Labour Market System' to enable such employees to work for other employers. The current employer will remain the primary employer and be liable for the employee's minimum entitlements (save for salary) under the law (i.e. leave, allowances, medical insurance etc.). |
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Pension | The General Pension & Social Security Authority (GPSSA) stated that it would allow subscriber private sector companies to defer the payment of subscriptions to the GPSSA for their staff for three months starting as of March and ending in May 2020 (subject to possible extension). | |
Daily curfew |
Dubai has relaxed it's 24 hour curfew. The entire UAE is now imposing a daily curfew from 10pm-6am. Individuals are required to stay at home during such time unless they work within vital sectors. |
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Restriction of movement |
Abu Dhabi has issued a notification prohibiting the transfer outside the Emirate of Abu Dhabi and likewise prohibiting the transfer of workers from other emirates into Abu Dhabi. The notification has been in effect from 11 April 2020. Dubai Municipality has issued a statement on 15 April 2020 prohibiting the transport of labour workers to areas outside of Dubai and from another emirate into Dubai. |
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Cabinet Resolution No.
17 of 2020 Concerning the Issuance of the List of Violations of
Precautionary Measures, Instructions and Duties Imposed to Reduce
the Spread of COVID-19 |
The resolution prohibits violation of any precautionary and preventative measures, instructions and duties issued by the Ministry of Health and Prevention, the Ministry of Interior and the National Emergencies, Crisis and Disaster Management Authority in relation to maintaining health and safety to prevent the risk of spreading COVID-19 and grants such authorities the power to impose administrative penalties of between AED 500 and AED 50,000 which may be doubled in the case of reoccurrence, and permits further sanctions in the event of a third breach. | |
Attorney General Resolution No. 38 of 2020 on the list of violations and administrative sanctions in violation of precautionary measures, instructions and duties applied to limit COVID-19 |
This resolution sets out specific penalties for breaching the above resolution (17 of 2020), including a fine of AED 50,000 for failing to adhere to home quarantine instructions. Other penalties include a fine of AED 2000 for those "leaving home for unnecessary reasons, or for any purpose other than work or purchase of basic needs" and a fine of AED 1000 for "failing to wear medical facemasks in closed places or failing to observe the safe distance between individuals". |
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Dubai Department of Economic Development (DED) announcement on remote working |
The DED has mandated private sector companies to implement working from home for 80% of its workforce. |
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Free Zones |
The DIFC Authority, The Dubai Development Authority and Jebel Ali Free Zone Authority have all mandated remote working systems in line with DED announcements. ADGM has advised employers to ensure that no more than 30% of the workforce work from the employer's registered office (save for, supermarkets, grocery stores, pharmacies, hospitality, food establishments (delivery), security, maintenance, cleaning, infrastructure management and constriction). |
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Communicable Diseases Law |
This law has been amended to include COVID-19 meaning that individuals are under a personal duty not to transmit the disease (even if they are asymptomatic), not to travel if they suspect they have it, to seek medical treatment, and not to deliberately transmit the disease, which could mean going out of their home unnecessarily. Penalties vary but can go up to 5 years imprisonment and AED 50,000 to 100,000 fine. Individuals are also subject to penalty if they break quarantine. Direct supervisors at work are under a duty to order employees displaying COVID-19 symptoms to seek medical assistance and if they do not to report their condition to the authorities. |
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KSA | ||
Ministry of Human Resources and Social Development (MHRSD) mandates: |
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Additional leave |
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Work from home |
MHRSD instructed private sector establishments on 18 March 2020 to suspend work at their main office / headquarter and instead activate work from home (WFH) procedure. Companies are also required to reduce the number of employees working in their branches, offices and other facilities to a maximum of 40% of the headquarter (HQ) workforce. The WFH initiative was initially for 15 days but is now understood to be until Ministry of Interior and MHRSD advise otherwise. Certain sectors are exempt from the above requirements, including vital infrastructure sectors such as water, electricity and communications, and companies involved in food, medicine, and their supply chains as well as logistics, including provision of such services to consumers. MHRSD will issue the exemption on application. Sectors still operating work places are required to adhere to the following:
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Curfew |
A 24 hour curfew remains in place in Mecca city, and a few other isolated districts, but has been partially lifted elsewhere in KSA, with a curfew now in place from 5pm to 9am daily. Some sectors, such as food, healthcare, transportation, ecommerce, accommodation services, energy, financial, telecom and water are exempt. |
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Furlough programme for KSA nationals |
On 3rd April KSA announced a furlough programme for the private sector, current details of which are:
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HRDF programme to supplement salaries | Whilst not strictly a furlough programme this programme was announced on 2nd April 2020 and permits private sector employers to apply to the HRDF for support to pay up to 50% of their KSA nationals salaries subject to lower and upper limits on salary and with conditions applying. | |
6 April 2020 – Amendment of the KSA Implementing Regulations to the Labour Law |
Ministerial Resolution equivalent to 6 April 2020 amends the implementing resolution to the Labour Law (issued in January 2019) by adding a new clause 41 providing:
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Other initiatives announced |
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KUWAIT | ||
Curfew |
Kuwait is currently enforcing a daily curfew prohibiting individuals from leaving their homes between the hours of 4 pm and 8 am. The deputy Prime Minister and Interior Minister and Minister of State for Cabinet have been stated that anyone caught breaking the coronavirus curfew will potentially face a prison sentence of up to three years and a fined of 10,000 Kuwaiti dinars ($32,000). |
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Closure of public places |
All schools, cinemas, exhibitions, stores, shopping malls, gyms, sports complex, salons, barbershops and all outlets deemed to be high risk for COVID-19 exposure have been closed. Certain establishments have been excluded from closure, including restaurants, food and beverage shops (although they are only permitted to sell food and drinks for take away or delivery), laundries, repair shops, currency exchanges, pharmacies, gas stations; hardware, cattle feed shops, and administrative offices. |
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Other |
No other special measures have been introduced for the private sector but the Kuwaiti labour law permits an employer to put an employee on paid leave in accordance with its provisions. The Government has also stated that it is reviewing potential actions with regard to wages during this period. The Minister of Social Affairs & Labor (MOSAL) has the option to compel employers to pay wages and MOSAL can use the guarantee money deposited by employers with the MOSAL for such payment. We understand that government sector employees have been paid their salary ahead of time and Kuwaiti citizens have been informed that they can postpone their loans without interest and their personal credit card for 6 months. Company loans have also been deferred for 6 months without payment of interest for the delay. The government is currently considering an economic stimulus package that will help people overcome the harsh impact on the economy by the COVID-19 shutdown. |
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BAHRAIN | ||
Work from home encouraged |
The government has recommended, but not mandated, that companies implement work from home initiatives. Whilst there have been no private sector workplace suspension, consultancy offices are prohibited from having clients attend their offices. |
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Potential curfew |
A curfew proposal has been put forward but has not yet been implemented. |
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QATAR | ||
Work from home |
The government has mandated that companies implement working from home for 80% of its workforce and the remaining 20% of the workforce is only permitted to work between the hours of 7am-1pm for the next two weeks. | |
Financial
Assistance |
The Qatar Government has announced that it has set up a guarantee scheme for private sector employers affected by the COVID-19 impact. Through the scheme, employers who qualify are able to apply for finance to cover up to three months' employee payroll obligations and up to three months of real estate rental fees. Conditions apply, including the requirement to be incorporated under the Ministry of Commerce and Industry and not operate within the real estate, construction and contracting sectors. | |
Ministry of
Administrative Development, Labor and Social Affairs (MADLSA)
statement |
The MADLSA has published a note (Guidance Note) on their website which provides that employers and employees are required to adhere to various conditions. We set out the key requirements:
The Guidance Note has been issued to assist workers, and whilst it does not formally amend the Qatar Labour Law, in the event of a complaint, it is likely that the MADLSA will apply the position set out in the Guidance Note. |
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Other initiatives |
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Economic stimulus package |
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Corporate, immigration and social support |
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OMAN | ||
Working from home initiatives |
Government employees are currently working 30%. The Ministry of Manpower has issued notifications to the private sector requesting the following:
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Reducing staffing costs |
The following applies with respect to Omani national employees:
The following applies with respect to foreign national employees:
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Ministry of Manpower (MOMP) initiatives |
The MOMP has recently announced the following:
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Financial aid for Omani
nationals |
Omani nationals suffering from reduced wages may apply for the following support:
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Social insurance |
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Economic stimulus |
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Originally published 13 May, 2020
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.