أسئلة وأجوبة
Can my employer deduct money from my salary for an unintentional billing error?
Hello,
I am working at a medical clinic in Dubai as a medical receptionist. Recently, our medical clinic received a 15,000 AED fine due to a small billing error I made unintentionally.
Now, the clinic is telling me that they will deduct 700 AED per month from my salary, while my basic salary is only 1,500 AED.
Is that legal in the UAE?
Dear Sir/Madam,
Thank you for bringing this important matter to our attention!
Based on the information you've provided regarding the proposed salary deduction by your employer, I can offer the following professional advice:
1. Deduction Limits:
According to UAE Labor Law, the maximum deduction allowed for damages caused by an employee is limited to 5 days' wages per month, unless approved by a competent court.
Given your basic salary of 1500 AED, the maximum legal deduction should not exceed approximately 250 AED per month (assuming a 30-day work month).
2. Total Deduction Percentage:
UAE labor regulations stipulate that the combined total of all deductions cannot exceed 50% of an employee's monthly wage.
The proposed 700 AED deduction from your 1500 AED basic salary (46.7%) approaches this limit and may leave you with insufficient income.
3. Nature of Error:
Deductions for damages are typically permissible only for errors resulting from negligence or violation of employer instructions. An unintentional billing error may not meet this criterion.
4. Written Consent:
Many types of deductions require the employee's written consent, which does not appear to have been obtained in this case.
Given these considerations, the proposed deduction appears to contravene UAE labor laws. I would recommend the following course of action:
1. Engage in a dialogue with your employer, referencing the relevant UAE labor law provisions on salary deductions.
2. If the issue remains unresolved, consider filing a complaint with the Ministry of Human Resources and Emiratisation (MOHRE) for further guidance and intervention.
3. Keep detailed records of all communications and relevant documents pertaining to this matter.
If you require any further clarification or assistance, please don't hesitate to ask.
Yours sincerely,
Dear questioner,
An employer is not allowed to deduct any amounts from an employee’s salary except in specific cases, such as recovering a financial advance or compensation for damages caused by the employee due to gross negligence.
However, the deduction must not exceed 50% of the employee’s monthly salary. The employee should file a complaint with the Ministry of Human Resources and Emiratisation if the deduction is unlawful.
For further legal assistance, feel free to contact me.
Mohamed Salah Shoeib
Legal Consultant
Dear Inquirer,
Thank you for reaching out!
Under UAE labor law, employers generally cannot deduct fines or penalties from an employee’s salary without legal justification and due process.
Additionally, any deductions should not exceed the legally permitted limits. Given that your basic salary is 1,500 AED, deducting 700 AED per month could be considered excessive and may not be compliant with labor regulations.
We highly recommend consulting a legal expert to assess your specific situation and explore possible actions to protect your rights. You can book a consultation through our website or contact us directly for legal assistance.
Best regards,
I understand your concern regarding the salary deduction due to the billing error. Under UAE Labour Law, an employer cannot impose salary deductions arbitrarily.
There are strict regulations on salary deductions, and any penalties must follow legal procedures. Typically, deductions cannot exceed 5% of your monthly wage unless authorized by law or agreed upon in a contract.
In your case, deducting AED 700 per month from a basic salary of AED 1,500 seems excessive and may not be legally enforceable.
You have the right to challenge this and seek legal recourse. I can assist you in assessing the legality of this deduction and, if necessary, filing a complaint with the relevant authorities.
Please reach out to me via WhatsApp or phone to discuss your case further and explore your legal options.
Best regards,
Suhail Rana
The proposed deduction of 700 AED per month from your salary is likely illegal under UAE labor laws because it exceeds the maximum allowable percentage for deductions.
It would be advisable to discuss this matter with your employer and seek clarification on their policy regarding fines and deductions.
If necessary, you may consider consulting with a legal expert or reaching out to the Ministry of Human Resources and Emiratisation for further guidance.
The answer is that this practice appears illegal under UAE labor laws due to excessive deduction limits.
