Coronavirus: UAE allows employers to lower salaries if employees agree

Cars pass by the Business Bay Towers, in Dubai, United Arab Emirates. (File photo: AP)

The United Arab Emirates is allowing private companies to change contracts with employees, as the coronavirus pandemic hits business.

The alterations can only happen if both parties are in agreement, according to a statement by the nation’s Ministry of Human Resources and Emiratisation. Private companies can now permanently or temporarily lower their employees’ salaries and extend paid or unpaid leave.

Employers will still have to provide accommodation and other dues for workers as long as they remain in the country.

The Gulf nation has reported 611 virus cases, including five fatalities. It has already halted flights, shut malls and rolled out a $34 billion stimulus package in an effort to counter the effects.

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Last Update: 15:25 KSA 18:25 - GMT 15:25
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