Sharjah's public sector will adopt a four-day working week and a three-day weekend - giving employees an extra half day off than the rest of the country.
Sharjah's Executive Council announced the decision on Thursday. It will come into effect on January 1, 2022.
Employees will work from 7.30am to 3.30pm, which is 60 to 90 minutes longer than they do at present.
The decision follows the federal government's landmark shift to a Saturday-Sunday weekend, with a half day of work on Friday. The UAE's labour minister said the private sector will receive no official instruction to make the change, and can do so at their own discretion.
It makes Sharjah's government sector the first in the Gulf and Middle East to fully adopt a four-day working week. Dubai, Abu Dhabi, Ras Al Khaimah and Fujairah's local governments have all committed to a 4.5 day working week.
Sheikh Sultan bin Ahmed Al Qasimi, Deputy Ruler of Sharjah, announced the move after instructions from the Ruler of Sharjah.
Schools throughout the country are already braced for the new Monday to Friday working week, with schools expected to open with a new timetable on Monday, January 3. There is an extra national holiday on Sunday, January 2, 2022.
'More quality family time'
Sheikha Tariq, an Emirati public sector employee, told The National she and her colleagues were elated by the news.
She said it was clear that more work will have to be got through during the working week in return for the extra time off.
“This will not only give us more time to spend with our families in a way that will boost the emirate’s efforts of preserving the family unit, but will also encourage employees to perform better at work,” she said.
“It's a great decision in terms of more family bonding, religious commitment and increased productivity."
Abdul Jaleel Al Bloushi, who works for a government HR department in the town of Kalba, said employees would need to show they could make a four-day week work.
"You see by the working hours, you will notice they have been extended. And now employees including myself have an incentive to do better performance," he said.
He said many will appreciate the chance to be "more present in the lives of our children and families".
School situation not yet clear
Although it would appear likely that schools could fall in line with government work hours, headteachers said it was too soon to say whether pupils would attend classes on Fridays or not.
The country's public schools, largely attended by Emiratis, are overseen by a federal authority, while Sharjah's private schools are regulated by a local education authority.
Ibraheem Barakeh, director of the Al Shola group of private schools, said there were many factors to consider.
"We haven’t received anything official related to this decision, in terms of the shape of the school week," he said.
"We are eagerly waiting for details in order to be able to coordinate not only the new school week but also what’s connected to it, such as school holidays, final exams in each of the terms.
"We expect all of these factors were taken into consideration before the decision was taken."
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If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
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Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
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Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer