Your training costs cannot be deducted from salary

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Your training costs cannot be deducted from salary

Dubai - It is the responsibility of the employer to provide sufficient training to the employees.

By Ashish Mehta

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Published: Mon 15 May 2017, 6:59 PM

Last updated: Tue 16 May 2017, 8:55 AM

I work on a limited period contract at an LLC company in Abu Dhabi. My contract is due to end in September. I am currently going through a training period, which costs the company about Dh7,000.
As per the company's policy, if I resign within two years from the date of training, I am obligated to compensate the employer for the training. I am very likely to resign a few months after I renew my contract.
Is such a policy legal? Does it depend on the new contract, whether it is limited or unlimited?
Pursuant to your questions it is the responsibility of the employer to provide sufficient training to the employees, and the employer may not deduct the training costs from the salary of the employee or demand the same from the employee at the time of termination of the employment contract.
With effect from January 1, 2016 a 'Ministerial Order Decree No. 765 of 2015 issued by the Ministry of Human Resources and Emiratisation (the 'Ministry') on Rules and Conditions for Termination of Employment Relations' has come into force.
Article 1 (1) of the aforementioned Ministerial Order states: "An employment relation between employer and worker may be terminated as follows:
In the case of fixed-term contracts (approved by the ministry for a term of no more than two years), an employment relation is terminated if any of the following instances occurs:
1 The term of the contract expires and the contract is not renewed.
2 Employer and worker mutually consent to terminate the contract during the course of its term.
3 Either party (employer or worker) acts unilaterally to terminate the contract and complies with the legal steps described in clause (4) of this article. The terminating party bears any legal consequences of early termination.
4 Either party (employer or worker) acts unilaterally to terminate a renewed term contract, whether renewal has occurred before or after this decree enters into effect, provided the terminating party complies with the following legal steps:
In accordance with the aforesaid regulation, you and your employer may mutually consent to terminate the contract before the expiry of the term of the current employment contract. In case you intend to terminate your employment contract after its renewal then the terms of renewed employment contract will apply and the contract period may be changed to unlimited period contract if it is mutually agreed by you and your employer.
The renewed employment contract may be altered provided it is advantageous to the employee subject to the approval of the Ministry of Human Resources and Emirtisation (the "ministry") in accordance with Article 4 of Ministry Ministerial Decree No. 764 of 2015 issued by the ministry states: "The employer must retrieve from the ministry system a standard contract that captures exactly the terms of the employment offer and obtain the worker's signature on the contract prior to presenting the contract for registration with the ministry. No alteration or substitution of terms may be entered unless such alteration or substitution benefits the worker and after the alteration or substitution is approved by both the worker and the ministry.
Employing without valid contract is criminal offence
I joined a company (not in a free zone) in January 2016 on a visit visa with the promise that my company will change my visa into a residence visa. But it took two more months for them to stamp my residence visa because the company's visa approval was blocked by the ministry. Since then, I have received salary only for the month of January, and am still waiting for the last four months' pay.
Pursuant to your questions, it is illegal for an individual to work without a valid employment contract/visa approved by the Ministry of Human Resources & Emiratization. Employing or getting employed in the UAE without valid employment contract/visa is a criminal offence in accordance with Article 11 of the Federal Law No. 6 of 1973 Concerning Immigration and Residence, states,: "The alien who obtains a visit visa may not work anywhere in the country with or without pay or for his own.
Any company employing a person who is in the UAE on a visit visa is equally guilty. Since you worked with your employer while on visit, you may not be eligible for any pay for the term you were on visit visa. Your employment contract commences from the day your visa status changed from visit visa to employment visa and you are eligible for salaries from the said date.
Since you are working for a non-free zone company in UAE your employment is subject to provisions of Federal Law No. 8 of 1980 on Labour Relations (the "Labour Law"). It may be noted that non-payment of salary by an employer is a violation of the Labour law in the UAE. As such an employee is allowed to leave his place of work without notice, if the employer does not fulfill his obligations towards the employee. This is in accordance with Article 121 of the Federal Law No. 8 of 1980 which states: "A worker may leave his work without notice in either of the following cases:
a) If the employer fails to comply with his obligations towards him, as provided for in the contract or in this Law;
b) If he is assaulted by the employer or the employer's legal representative."
Pursuant to the above mentioned provision of law, you may leave your place of work forthwith, without providing a notice to your employer, provided you file a complaint against your employer at the Ministry of Human Resources & Emiratisation stating non-payment of salary for last few months.
 


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