The ongoing geopolitical events in the Middle East are creating significant operational and workforce challenges for employers across the region. While the legal framework in jurisdictions such as the UAE, KSA, and other GCC countries has not fundamentally changed in response to the current crisis, the application of existing employment laws in a crisis context raises a number of important considerations. This update highlights the key legal and practical issues employers should be addressing when managing employees during this period.
Duty of Care and Workplace Safety
Employers remain subject to a fundamental duty to provide a safe working environment. While this duty does not impose additional obligations arising from the present conflict, nevertheless, employers may wish to consider conducting risk assessments in light of security or travel concerns; adjusting working arrangements (e.g. remote working, flexible hours); and implementing emergency response and communication protocols.
An additional factor which can be overlooked is an employee’s mental wellbeing during this period of heightened tension. Therefore additional steps may be
- offering access to, or reminding staff of access to, Employee Assistance Programmes;
- conducting regular check-ins with staff, including online check-ins where employees are working remotely; and
- keeping staff up to date on the steps already taken by the employer, or to be considered in the event the conflict escalates, to manage anxiety.
Remote Working and Cross-Border Issues
Many organizations are implementing remote working arrangements to ensure business continuity and employee safety. Where employers are allowing employees to work remotely from outside of the region, employers should consider the following:
- Immigration compliance: Employees working from another country may require local work authorization.
- Tax exposure: Cross-border working may create corporate or individual tax liabilities.
- Regulatory risks: Local labor law obligations in the host country may be triggered.
Employers should carefully assess these risks before permitting extended remote working from outside the employee’s normal place of employment.
Salary Protection and Payroll Obligations
A consistent theme across GCC employment regimes is that employers must continue to meet salary obligations, even during periods of instability.
Salaries must be paid in full and on time in accordance with employment contracts. In the UAE, for those falling under the Ministry of Human Resources & Emiratisation, or under the JAFZA or DMCC free zones, or in KSA, payments must be processed through the Wage Protection System (WPS). Delays or unilateral reductions may result in penalties or employee claims
Importantly, there is generally no automatic right to reduce or withhold salary due to external events. Any such measures require employee consent or must fall within narrow statutory exceptions.
Managing Absence, Attendance and Refusal to Work
The crisis may affect employees’ ability or willingness to attend the workplace. Employers should distinguish between employees unable to attend due to external factors (e.g. travel disruption), which may constitute justified absence and employees refusing to attend despite being able to work.
Where employees can perform their duties remotely (either at home or in an appropriate, pre-agreed foreign location), withholding salary may be difficult to justify and could be treated as an unlawful deduction or disciplinary penalty. Clear communication and a documented, reasonable approach to attendance expectations are essential.
Changes to Terms of Employment
Employers may consider temporary measures, such as reduced working hours, salary reductions, and an unpaid leave. However, consultation and documentation are critical when implementing any temporary changes. This is particularly true because under regional labour laws unilateral changes to fundamental terms are generally prohibited, employee consent is typically required, and failure to obtain consent may result in breach of contract claims.
Redundancy and Workforce Restructuring
Economic uncertainty may prompt employers to consider restructuring or redundancies; however, the legal framework in many GCC jurisdictions (such as in KSA and the UAE) restricts redundancy-based terminations.
Employers should note the following:
- Redundancy is only permitted in limited circumstances (e.g., business closure or exceptional economic reasons)
- Terminations must comply with contractual notice requirements (assuming this is possible; in Saudi Arabia, for example, all expatriate employees and some Saudi national employees will be on limited term contracts, where early termination will give rise to a compensation payment)
- Selection processes must not be discriminatory or arbitrary
Employers should proceed cautiously and seek legal advice before implementing workforce reductions.
Immigration and Mobility Considerations
Employee mobility remains a critical issue during the crisis.
Visa renewals should be initiated earlier than usual to avoid disruption. Visa cancellation typically requires both employer and employee consent. Employees relocating abroad may create additional compliance requirements.
Employers should closely monitor immigration processes and maintain proactive communication with employees.
Practical Steps for Employers
In light of the above, employers should consider the following:
- Implementing or updating crisis management and business continuity plans
- Reviewing employment contracts and policies for flexibility (e.g., remote work clauses)
- Ensuring payroll continuity and compliance with wage protection rules (where relevant)
- Engaging in transparent communication with employees
- Documenting all decisions and agreed changes
- Seeking legal advice before implementing significant workforce measures
Conclusion
While the current crisis presents unprecedented operational challenges, employers in the Middle East must continue to navigate within an increasingly robust and employee-protective legal framework. The key risk areas—employee safety, salary protection, contractual changes, and cross-border working—require careful management and proactive planning.
Employers who adopt a structured, compliant, and employee-focused approach will be best placed to manage both legal risk and workforce stability during this period.