Your UAE firm can’t slash your salary without your consent

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Your UAE firm can’t slash your salary without your consent

An employer cannot reduce the employee's salary or change their designation without their written consent

By Ashish Mehta

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Published: Sun 22 Oct 2017, 4:00 PM

Last updated: Mon 23 Oct 2017, 3:11 PM

I am writing on behalf of a friend who is working as a sales executive in a Dubai-based company. Ever since she got pregnant, she has been mentally pressured and harassed by her boss.
Despite achieving sales targets before deadlines, her company says they are not doing well because of her poor performance. Further, they have sent an email demoting her position. It is evident that she is being targeted and she has not received incentives for the last two months. The company wants her to sign the demotion documents for approval. They also want to reduce her basic salary and housing. Also, to clarify, her basic was less than her housing transportation - it was not a 60-40 ratio. She cannot survive if her salary is reduced from Dh9,000 to Dh4,000. When she consulted the labour call centre, they said the company can do this or even have right to terminate her. Is this true?
Pursuant to your queries, your friend's employer cannot reduce her salary and change her designation without her written consent. If the employer wants to reduce the salary and change the designation, they should enter into a fresh employment contract signed by both parties and it needs to be submitted to the Ministry of Human Resources and Emiratisation (the 'Ministry') for approval.
Article 60 of the 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: (a) 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;
(b) Contributions which the law requires the employee to pay from his remuneration, e.g. towards social security, insurance schemes;
(c) The employee's contributions to a savings fund or repayment of advances repayable;
(d) Contributions towards any welfare scheme or in respect of any other privileges or services provided by the employer and approved by the Ministry;
(e) Fines imposed upon the employee for any offence made;
(f) Any debt payable in execution of the judgement of a court;
Provided 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 prorata among the beneficiaries, after payment of any legal alimony at the rate of one-quarter of the worker's remuneration." It is recommended that your friend approach any Tasheel Centre to file a complaint against her employer with the ministry. She can also approach the Child and Women Protection Department and file a complaint as she has been harassed by the employer during her pregnancy.  
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 questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.


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