Khaleej Times

No salary cut without your written consent

- Ashish Mehta Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom, Singapore and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questi

I have been working for an LLC company since August 2015. I was informed recently by the CEO that salaries would be reduced and designatio­ns changed as the company is updating its grading system. Is it legal to reduce salaries across the board like this? Do I have any legal recourse? My contract noted a certain position with a certain salary. Pursuant to your queries, your employer cannot reduce your salary and your designatio­n without your written consent. In the event the employer wants to reduce the salary and change the designatio­n of an employee, they should enter into a fresh employment contract signed by both the parties and the same needs to be submitted to the Ministry of Human Resources and Emiritisat­ion (the ‘Ministry’) for their approval. Article 60 of federal law no. 8 of 1980 regulating employment relations in the UAE (the ‘Employment Law’) states: “No amount of money may be deducted from an employee’s remunerati­on in respect of private claims, except in the following cases: > The recovery of advances or amount of money paid to the employee in excess of his entitlemen­ts, on condition that the amount deducted in this case does not exceed 10 per cent of his periodic remunerati­on; > Contributi­ons which the employee is required by law to pay from his remunerati­on, for example towards social security and insurance schemes; > The employee’s contributi­ons to a savings fund or repayment of advances repayable thereto; > Contributi­ons towards any welfare scheme or in respect of any other privileges or services provided by the employer and approved by the Ministry; > Fines imposed upon the employee for any offence he has committed; > Any debt payable in execution of the judgement of a court of law provided that the deduction shall not exceed one-quarter of the employee’s remunerati­on. Where two or more debts are payable, the maximum shall be half the employee’s remunerati­on and the sums of money attached shall be divided pro rata among the beneficiar­ies, after payment of any legal alimony at the rate of one-quarter of the worker’s remunerati­on.”

Can I take paid leave during notice period?

I am planning to resign from my job on July 1. I did, however, have a week and a half worth of leave previously planned for that month. Now my employer is saying I cannot go and that I must serve each day of my onemonth notice period in office. Is this legal, or can I still go?

Pursuant to your queries, it is assumed that the leave approved by your employer is annual leave. However, the employer may cancel your annual leave or change the dates of your annual leave. You are required to serve your notice period if your employer so desires. This is in accordance with article 118 of the federal law no. 8 regulating employment relations in the UAE (the ‘Employment Law’) which states: “A contract shall continue to be valid throughout the period of notice referred to in the preceding article and shall terminate on the expiry of the notice period. The employee shall be entitled in respect of the period of notice to full pay calculated on the basis of his last remunerati­on and he shall be required to perform his work during that period if the employer so requests.

The parties may not agree to dispense with the requiremen­t as to notice or to reduce the period of notice, but may agree to increase it.”

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