‘My employer cut my salary because of Covid-19 without telling me’

QSince October 2018, I have been paid Dh3,000 each month – Dh1,500 being my basic salary and Dh1,500 being allowances. In May, the company’s management decided to reduce my total salary to Dh2,000 without giving me notice. When I called the accounts department, I was told it was a directive from management due to Covid-19. I then called a director at my company and said I did not see why I should have my salary cut as I am still working eight hours each day, sometimes more, but he said that I had to understand the present situation. I cannot live on this amount of money and it is not fair. What can I do? SA, Dubai

A No employer is permitted to reduce a salary in this way. To help private companies deal with the effects of the coronavirus on their businesses, the Ministry of Human Resources and Emiratisation published Ministerial Resolution No.279 of 2020 in March. The resolution states that if an employer is adversely affected by Covid-19, they can take certain steps to reduce their costs. However, the employer must discuss the decision with the employee, who must also agree to the salary reduction.

Under the resolution, there is a process that employers should observe and it is in the following order: introduce remote working, grant paid leave, grant unpaid leave, reduce wages on a temporary basis during the said period and, finally, reduce wages permanently. Assuming the first three are not viable, a salary reduction can be brought into effect, but it cannot be done without mutual agreement and the employee must also sign paperwork attesting to this.

Article 6 of the resolution goes on to say: “If the establishment wishes to reduce the wage of the non-national worker permanently, it shall apply for a ‘work contract details amendment’ service to obtain the ministry’s approval, according to applicable procedures.”

This is in reference to a permanent salary reduction. There is not a lot of detail here but “applicable procedures” refer to a new contract that must be lodged with the ministry and approval must be obtained before that can happen.

The expectation is that the employee has agreed to the salary reduction before it is brought into effect.

The guidance is clear that this must be conditional on the agreement of the employer and employee.

I suggest that SA contacts the ministry as it appears the employer has acted illegally in reducing his salary without his agreement.

The contact number for the ministry is 800 60 and there is also an online chat function on its website at mohre.gov.ae.

I was terminated from my job but my boss wants to use my ignorance of the law not to pay me. I did not receive any holiday pay or gratuity and they did not give me notice. What am I entitled to? I worked for the company for six weeks. DH, Ras al Khaimah

DH was on probation and no notice of termination was required as set out in Article 37 of UAE Labour Law, which states: “The worker may be employed for a probation period not exceeding six months, where the employer may terminate the services of the worker without notification or end of service gratuity.” No gratuity was due as employees must work a minimum of 12 months to be eligible.

In this situation, DH must be paid for the number of days he worked and also for annual leave days that were accrued. This will probably be two days and the amount due should be added to the salary as part of the final settlement.

Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with more than 25 years’ experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE. The advice provided in our columns does not constitute legal advice and is provided for information only