Atlas Insights September: Cryptocurrency in UAE Salaries, Ireland’s Extended Parental Leave, and More Global Updates
United Arab Emirates – Cryptocurrency as Partial Employee Salary
As of August 2024, due to the settling of an employment dispute in the United Arab Emirates (UAE), the Dubai Court of First Instance ruled that part of an employee's salary can now legally be paid in cryptocurrency.
The case involved an employee whose contract specified their monthly salary is to be paid partly in fiat currency and partly in 5,250 EcoWatt tokens, a form of cryptocurrency.
Over six months, the employer failed to pay the cryptocurrency portion of the salary, prompting the employee to file a lawsuit. In its 2024 ruling, the Dubai Court of First Instance sided with the employee, recognizing the validity of the cryptocurrency payment as outlined in the employment contract.
The court ordered the employer to fulfill the contractual obligation to pay the salary in EcoWatt tokens without requiring the conversion of the payment into fiat currency.
In 2023, the Dubai Court addressed a similar case involving EcoWatt tokens in an employment contract, where the claim for cryptocurrency wages was denied, due to the lack of a straightforward method for valuing the tokens.
The August 2024 decision is notable because it recognizes the payment of a portion of an employee's salary in cryptocurrency as a valid form of remuneration, provided it is clearly stipulated in the employment contract.
Ireland – Government Extends Parent’s Leave by Two Weeks
Effective 1st August 2024, parents in Ireland are now entitled to nine weeks of parent’s leave in respect of children born or adopted on or after 1st August 2024. Previously, the parent’s leave benefit allowance was seven weeks.
Parent’s Leave was initially introduced in Ireland by the Parent’s Leave and Benefit Act 2019. This legislation initially provided for only two weeks of parent’s leave, but this has steadily increased over the past few years.
The nine weeks may be taken in a single nine-week period or in separate weekly increments. It is not transferable between parents. It is paid by the Department of Social Protection at a rate of EUR 274 per week for employees who made sufficient prior social contributions into the national Social Insurance Fund. This is equivalent to GBP 230.76/ USD 304.55.
To be eligible, the employee must have paid at least 39 weeks of Pay Related Social Insurance (PRSI) since the employee first started working.
Qatar - New Nationalization Policy for Private Sector
Qatar has introduced a draft law aimed at increasing the employment of Qatari nationals in the private sector. The law requires employers to prioritize Qatari nationals, or children of Qatari women married to foreigners, over foreign applicants.
Employers must post job vacancies on the 'Ouqoul' platform within one month of the job opening and notify the Ministry of Labor about new hires within 60 days. Employers are also required to report employee headcount every six months.
These new requirements will apply to private business owners, commercial companies (including state-owned and private firms), as well as private non-profit organizations, to name a few. Companies involved in petroleum exploration, production, and petrochemicals are expected to be exempt from these provisions.
Furthermore, financial support will be offered to both Qatari employees and their employers to encourage the hiring of Qataris in the private sector. Governmental regulations detailing the nationalization plan are expected to emerge soon.