Many employers across the UAE are seeking to reduce employment costs. We have listed below, in no particular order, the most common options currently being considered and implemented by UAE companies.

1. Temporary or permanent reduction in working hours/pay with employees' consent
2. Temporary or permanent reduction or removal of other employment benefits with employees' consent
3. Placing employees on temporary unpaid leave with employees' consent
4. Deferall of salaries and bonuses with employees' consent
5. Requiring employees to take paid annual leave (whether or not under the "early leave" initiative implemented by the UAE Ministry of Human Resources & Emritisation)
6. Registering "redundant" employees with the Virtual Labour Market established by the UAE Ministry of Human Resources & Emritisation
7. Termination of employment by mutual agreement (often referred to as "voluntary redundancy")
8. Termination of employment (often referred to redundancy)
9. Utiliising the three month holiday for making statutory pension contributions (currently only available to Abu Dhabi companies)
10. A combination of one or more options (1) to (9) above

There are important legal and practical considerations which must be considered before implementing any of the options outlined above. For further details, please contact our employment team.