Coronavirus: UAE employers must pay housing allowance to laid off staff, judge warns

Abdulla Al Nuaimi, head of the Abu Dhabi Labour Court, said new legislation would help protect employees

Salary cuts during the Covid-19 outbreak will not affect the end of service gratuity according to the Ministry of Human Resources and ‎Emiratisation‎. Getty Images

A senior judge has warned UAE companies must continue to pay staff their housing allowance if they are made redundant.

Abdulla Al Nuaimi, head of the Abu Dhabi Labour Court, reiterated that federal legislation brought in late last month guaranteed workers their rent would be covered if they lost their jobs.

The ruling is designed to prevent tenants facing an uncertain financial future being evicted by their landlords.

He urged anyone who had been laid off and denied the allowance, or anyone who was forced out of housing provided by their employer, to contact their local court.

This is a material development and will act as a disincentive for employers when considering whether to reduce headcount

“Normally, all labour issues go through the Ministry of Human Resources and Emiritisation first before they reach us,” said Mr Al Nuaimi.

But he said the situation was now considered "an urgent matter and they can come to us directly.”

“A person can file his complaint and it gets registered immediately and referred to a judge,” he said.

“Since the beginning of the crisis we have received around 400 cases.”

The coronavirus pandemic continues to have a major impact on global markets, with clear repercussions for employment.

In the Emirates, the authorities have introduced a range of measures aimed at helping residents cope with the challenges that could lie ahead.

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

Mr Al Nuaimi said that since the country’s courts had begun operating remotely, cases were being submitted online and verdicts delivered by email, telephone or even WhatsApp.

Urgent submissions could be dealt with in just 24-hours, ensuring evicted tenants were returned to their homes promptly.

In a briefing note last month, Dubai law firm Al Tamimi & Co said the "significant" development had implications for any business considering laying off staff.

"The resolution provides that the employer must continue to provide the outgoing employees’ housing and all of their entitlements (save for their basic salary) until the earlier of the individual exiting the UAE or obtaining the necessary authorisation to work for another establishment," it read.

"This is a material development and will act as a disincentive for employers when considering whether to reduce headcount."

Lawyer Yousef Al Bahar, of Al Bahar and Associates, said the legal penalties of failing to pay laid off workers their housing allowance had yet to be determined.

But he said he expected further measures to protect the country’s workforce soon.

“The new resolution protects the rights of workers [given] the current situation,” he said.

“The government has also issued other procedures to ease the pressure on companies by lifting some fees and fines until the crisis is over.”