Questions & Answers
Housing allowance obligation of a terminated employee during COVID-19
Under the Ministerial Resolution 279 of 2020, are the employers required to pay all allowances (housing, transportation, insurance) except for wages for employees that they terminate?
If so, for how long will they have to pay for this?
Until they cancel their visa, 30 days after cancellation of visa, as long as they are in the UAE or until the end of 2020?
What if the employee does not leave the UAE, but gets an investor visa within the 30 days of cancellation, will the Employer still be liable to pay allowances once the employee gets the investor visa since the employee has not left the UAE?
Hello.
The Resolution requires companies to keep their commitments to the employees in terms of "housing".
The term does not say housing allowance. But rather, the Resolution implies housing itself, and not housing allowance.
As such, the exact meaning of the Resolution is still being debated. One view is, given the language stated, that it is meant for employers who provide physical housing, and not an allowance.
Therefore, in your case, it would be reasonable to expect that the employer's obligations end when you transfer the visa to an investor visa.
For options moving forward, feel free to contact my firm on email.
