As part of its efforts to contain the consequences of the coronavirus outbreak and limit its effects on the securities sector, the Securities and Commodities Authority (SCA) required the companies it licensed, in a circular issued yesterday, to comply with a number of controls and requirements concerning the UAE nationals working there.
This move comes to promote the package of initiatives that SCA introduced earlier in response to directives from the Cabinet to contain the impacts of COVID-19 on financial markets. It reiterates SCA’s belief in the importance of taking all actions necessary to ensure business continuity and manage institutional risks and reflects its commitment to its strategic and operational plan and its priorities in accordance with the National Agenda.
The circular required companies to notify SCA of any plans to modify the position or status of their UAE national employees. It also required them not to terminate their service, excluding cases of resignation or inability to meet job standards, which results in employee dismissal in line with the applicable rules and regulations.
The circular stressed that there should be no salary cuts for UAE nationals due to the consequences of the pandemic. It said that companies must comply with Ministerial Decision No. 212 of 2018 Regulating Employment of UAE Nationals in the Private Sector and must benefit from the support provided by the Ministry of Human Resources and Emiratization to the private sector to ensure the stability of the UAE nationals working there.
It is worth noting that, under the support of the wise government, SCA launched a series of initiatives earlier, including amending the limit down on share prices to 5% with no change to the limit up, developing a mechanism to facilitate share buybacks for listed companies and soften the conditions imposed, postposing the disclosure of the this year’s first-quarter financial statements until the scheduled disclosure of the second-quarter financial statements on June 30, and approving electronic voting on resolutions made at the general meetings of shareholders.