Transferred within the same UAE group. What happens to my benefits and allowances?

Dear Inquirer,

When an employee is transferred from one entity to another within the same group in the UAE, the following legal considerations apply:

1. Employee Benefits & Allowances:

The benefits and allowances agreed upon with the original employer should, in principle, remain applicable if the transfer involves continuity of employment.

However, if a new contract is signed with the new entity, the terms of employment may be subject to changes.

It is essential to review the terms of the transfer and the new employment contract carefully to determine the continuity of benefits.

2. Statutory Provisions:

Under the UAE Labour Law, a transfer within the same group of companies does not automatically terminate the previous contract, unless the new contract explicitly overrides or replaces the old one.

The UAE Labour Law governs contract amendments and transfers, and employees should ensure they are not disadvantaged by the transfer.

3. Legal Rights Protection:

If there are concerns regarding the continuation of benefits, you may want to seek legal advice to ensure that your rights are protected.

To discuss this matter in more detail and understand your options, book a consultation with us today or authorize us to assist you further.

Best regards,

Greetings!

In the UAE, when you are transferred to another entity within the same group, the treatment of your benefits and allowances depends on your original employment contract and any new contract provided by the new entity.

1. Key Points:

- Employment Contract: Your original contract governs your benefits unless a new contract changes them.

- Continuity of Benefits: Generally, benefits should remain unchanged unless the new entity explicitly states otherwise.

- Legal Framework: Refer to the Federal Decree-Law No. (33) of 2021 On the Regulation of Labor Relations (Labor Law), regarding obligations and end-of-service benefits.

2. Recommendation:

Review both contracts and clarify any changes. Consulting a legal professional may also be beneficial for any discrepancies.

Hello,

The employment contract you signed with the first entity is a crucial document. It outlines your benefits and allowances.

When transferring to another entity, a new employment contract may be required. The terms of this new contract will determine your future entitlements.

In principle, your accrued benefits, such as end-of-service gratuity and accumulated leave, should be preserved and your period of service should be considered continuous, even though you're moving to a different entity.

The rest of the benefits will depend on the company's policies and the terms of the new employment contract. If you need further clarification, we will discuss it more.

Kindly share your WhatsApp number to proceed.

Dear Questioner,

If your transfer is considered a continuation of employment within the same group, your accumulated benefits, gratuity, and allowances should remain unchanged unless agreed otherwise in writing.

However, if the transfer involves a new contract with the second entity, the terms may be subject to renegotiation.

Under UAE Labour Law, an employee cannot be transferred without written consent.

It ensures that the previous service is counted toward end-of-service benefits if employment is uninterrupted.

Article 51 confirms that gratuity is based on the entire period of service.

It is advisable to review your new contract to ensure all entitlements are honored. If you face any issues, we are ready to assist in protecting your rights, leveraging our 16+ years of legal expertise in UAE labor law.

If you are transferred within the same group, your benefits and gratuity should remain intact.

Any changes require your consent. If unfair terms are imposed, you have the legal right to challenge them.

For assistance, contact us.

Hello,

If your employment contract specifies that you are employed by the parent company or a group, and there is a clause allowing transfers between group companies, this transfer is generally legal.

However, if there is no such clause, your employer must adhere to specific guidelines under UAE Labor Law.

According to UAE Labor Law, a transfer of employment from one entity to another within the same group is typically treated as a continuity of employment.

This means that your length of service and seniority should remain intact. If the new entity intends to maintain the same structure of benefits (for example, housing allowance, transportation allowance, etc.), then your benefits and allowances should remain the same unless stated otherwise in the transfer agreement.