Salary Agreement Uae

April 12, 2021 12:50 am Published by Leave your thoughts

“Given the unusual circumstances, it is essential for employers and workers to join forces to overcome this difficult time,” says Michael Kortbawi, partner at BSA Ahmad Bin Hezeem Associates. “MOHRE defined the framework for mutual efforts by adopting a resolution that focused on mutual agreement between the two parties. 4. Temporary reduction in wages during this period is permitted for employers to make deductions on a worker`s wage under the terms of Section 60 and 61; However, the amount an employer can deduct from a single salary is limited. No more than 10% of the worker`s periodic salary cannot be deducted in case of repayment of advances or sums of money that go beyond his rights. In addition, not all debts payable in the execution of a court order may exceed a single wage of the worker; The debts of workers in many debts or creditors cannot be deducted from more than half of their salary. If the employee has caused loss, damage or destruction to a company property by violating the employer`s instructions or at fault with the worker, it can be deducted up to five days` salary per month to correct the error. Your salary reduction is supposed to be in line with the 2020 Ministerial Resolution (279) on Employment Stability in Private Sector Institutions during the implementation of precautionary measures to combat the new coronavirus epidemic (the “ministerial resolution”) of the Ministry of Human Resources and Emiratiization (the “MoHRE”) under Covid-19. According to the update, these are the measures that an employer can take in agreement with its staff: in the United Arab Emirates, workers who work for an annual or monthly salary must collect their wages once a month at maturity and no later than 10 days after the end of each pay period. If these deadlines are not specified in the contract, the employer must pay the worker once every 14 days. Unless the worker wishes to terminate the fixed-term contract before the expiry of the term, the worker is held liable, in accordance with the UNITED Arab Emirates Labour Act, for an “early termination allowance” of the employer equal to half of the three-month salary, salary and allowances, or half of the remuneration for the residual term. , if the contract runs less than three months. For employers, MOHRE will soon present an update on the use of the Wage Protection Service (WPS) to outline the procedure for temporary wage reduction.

“In cases where there is no mutual agreement, the employer has the reasons to dismiss its employee,” Kortbawi said. “The employer in question is required to pay all taxes in accordance with the provisions of the Labour Act [such as dismissal, days off, etc.]. It is important to note that dismissals resulting from the failure of a mutual agreement are unlikely to be considered unfair dismissals by labour tribunals, as employers will be able to refer to the resolution to justify dismissal.¬†Employers are required to pay the rights of their workers, with the exception of basic salary, until the worker leaves the country if he is able or allowed to work for another company.


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