Coronavirus: UAE residents try to plan for future as Covid-19 takes financial toll

Employees and employers have been hit hard as virus slows business

A fruit vendor with his watermelons at the Abu Dhabi Fruits and Vegetables Market during the Coronavirus epidemic. Victor Besa / The National

Abu Dhabi Civil Defence and Police sterilisation drive in Mussafah. Victor Besa / The National

A vegetable vendor fixes his gloves at the Abu Dhabi Fruits and Vegetables Market during the Coronavirus epidemic. Victor Besa / The National

A key worker wears a facemask as he walks passed a brightly coloured mural in Media City, Dubai. Chris Whiteoak / The National

A deserted part of JBR, Dubai. Chris Whiteoak / The National

A digger does some work on an empty Jumeirah beach, this is normally a very popular spot for beach goers, Dubai. Chris Whiteoak / The National

Abu Dhabi Civil Defence and Police sterilisation drive in Mussafah. Victor Besa / The National

A poster on Sheikh Zayed Road shows a family wearing facemasks tell people to Stay at home, Dubai. Chris Whiteoak / The National

A man walks past fishing boats in Ajman wearing a mask amid the coronavirus crisis. Chris Whiteoak / The National

A market worker boxes up fish at Ras Al Khaimah's dock. Antonie Robertson / The National

Empty streets in RAK as residents stay home for a third week. Antonie Robertson / The National

Residents of the Northern Emirates must stay home from 8pm to 6am, but can leave home to shop for essentials outside of those times. Antonie Robertson / The National

A sign outside Dubai Parks and Resorts offers support to frontline workers. Chris Whiteoak / The National

No entry signs at the closed Corniche in Abu Dhabi. Victor Besa / The National

A street cleaner sanitises gutters at Marina Mall car park in Abu Dhabi. Victor Besa / The National

The normally busy beaches of Abu Dhabi have been deserted in recent weeks. Victor Besa / The National

A shopper picks up essentials at Carrefour in Dubai's Ibn Battuta Mall. Dubai residents must apply for a permit to leave home. Chris Whiteoak / The National

The only vehicles on Dubai's roads are delivery trucks, bike couriers and minibuses taking essential personnel to and from work. Victor Besa / The National

The empty Al Maktoum Road near Deira Clock Tower in Dubai. It would normally be one of the city's busiest streets. Pawan Singh / The National

A 24-hour stay-home order and the disinfecting of streets has left Dubai streets mostly deserted. Pawan Singh / The National

The famous Deira Clock Tower at the heart of the city's old town. Pawan Singh / The National

The bridge to Meydan hotel and racecourse stands empty on Saturday evening. Reem Mohammed / The National

A shopkeeper waits outside his dress store in Al Ain. Chris Whiteoak / The National

An ambulance on a street in Al Ain. Chris Whiteoak / The National

A quiet street leads to Sheikh Khalifa bin Zayed Grand mosque in Al Ain. Chris Whiteoak / The National

The empty bridge to Meydan during daytime. Reem Mohammed / The National

Dubai residents must remain indoors at all times, unless they have a permit for essential shopping. Reem Mohammed / The National

Residents queue outside a supermarket in the Muraqqabat area of Deira in Dubai. Pawan Singh / The National

A customer enters a pharmacy in Dubai. Pharmacies and supermarkets are the only stores allowed to remain open to the public. Pawan Singh / The National

A man rides his bike across the street in Al Ain. Chris Whiteoak / The National

A medical worker in a booth prepares to swab residents at a drive-through test centre in the Dubai suburb of Khawaneej. AFP

Dubai skyline during lockdown. Antonie Robertson / The National

A man takes a taxi after leaving the Business Bay Metro station, Dubai. Antonie Robertson / The National

An awareness board on Meydan road, Dubai. Antonie Robertson / The National

The empty Kite Beach area of Dubai. Antonie Robertson / The National

A healthcare worker crosses an empty street in Bur Dubai while wearing a mask amid the coronavirus outbreak. Chris Whiteoak / The National

A gentleman crosses an empty street in Oud Metha in Dubai. Chris Whiteoak / The National

Men in face mask walking by nurseries in Warsan. Reem Mohammed / The National

UAE workers have been left reeling as companies slash costs to survive the damaging financial impact of the coronavirus pandemic.

Having to absorb pay cuts, unpaid leave and, in some cases, job losses has become a stark reality as lockdowns continue to be imposed around the world.

The National spoke to employers and employees who have been directly affected by the downturn in the global economy.

While most said they were able to cope for now by living off their savings, they were fearful the long-term picture could be far bleaker if the virus was not brought under control soon.

I was able to pay my staff a full month's wage before we closed and in the short term we can make it work

“I’ve had to close my company and it’s still completely up in the air when we can reopen,” said South African Tamarin Mather, 39, who runs a company that offers swimming and scuba diving lessons.

“I was able to pay my staff a full month’s wage before we closed and in the short term we can make it work.

“If it goes on much longer I might have to close the company and leave the country as we won’t be able to afford school fees.”

The pandemic, which originated in the Wuhan region of China, has had a severe impact on the world’s economy with sectors like leisure and tourism especially feeling the brunt.

Ms Mather, who is currently expecting her third child, employs five people at the company she runs with her sister in Dubai.

“So far we’ve been taking it day to day but I don’t how much longer we can stay in Dubai if it continues,” she said.

Asking staff to take unpaid leave is another tactic companies have employed as they wait for business to pick up again.

One employee in the food and beverage sector told The National she faced a 45 per cent pay cut.

A number of her colleagues were also asked to take unpaid leave or accept a 20 per cent cut.

A 38-year-old British man, asking to remain anonymous, who works for a sports company said he received an email informing him that staff were going to be placed on unpaid leave, without being consulted.

“I was called into the office and given two options. Either to resign or sign a document saying I was taking unpaid leave without a housing allowance,” he said.

“I took the unpaid leave so I would still have a visa along with my son and nanny.”

He said his wife, who is 13 weeks pregnant with their second child, is still bringing in a salary as she works as a teacher.

“I don’t know how long we can keep it up for though,” he said.

Jobseeker Shanaz Miah has been told companies have put recruitment on hold. Courtesy: Shanaz Miah

The government recently announced measures that employers could take to help mitigate the loss of business.

Under the new rules, employers are allowed to ask staff to work from home or take paid leave.

However, they are not allowed to reduce salaries or force staff to take unpaid leave without employees’ agreement.

When the 38-year old British man informed his employer of the new procedures he was told “I am afraid it is time to lay staff off”.

Jobseekers have also been adversely impacted by the coronavirus lockdown, with firms deciding to put a freeze on hiring.

“It’s been challenging because most recruiters are telling me positions are now on hold,” said Dubai resident Shanaz Miah, from the UK, who is looking for work in the HR sector.

She has been keeping herself busy by taking online courses to improve her skillset in the meantime.

“I’ve tried to stay positive so it doesn’t impact on my mental health,” she said.

“Everytime you look at the news it just seems all so negative.

Keren Bobker, a columnist for The National and senior partner at global financial services company Holborn Assets, said temporary pay cuts, while not ideal, were much more preferable to the alternative.

“For many it will be a case of accepting a reduction or facing redundancy as companies cannot afford to keep them on at the full salary,” she said.

“Many people are going to face some real financial pressures, especially as they were living from pay cheque to pay cheque with nothing set aside for a rainy day.”

She said banks need to follow the instructions of the UAE Central Bank and be more amenable when considering deferments on loan repayments for those affected by coronavirus.

Barney Almazar, director at Gulf Law, advised against employees resigning if they cannot reach an agreement with employers over pay reductions.

“If the employee does not agree with the salary reduction, the company can terminate their employment,” he said.

“But they should not resign as they did not do anything wrong. Under the law, the company still has the obligation to pay gratuity.”