Is it legal to reduce the salary after signing an employment contract?

It is generally not legal for an employer to reduce an employee’s salary after signing an employment contract without mutual agreement or a valid legal justification.

Dear Questioner,

Thank you for your inquiry!

According to UAE labor law, it is not legal to reduce an employee's salary upon signing an employment contract.

The salary stated in the contract is considered the agreed-upon amount and any changes to it must be made with the mutual consent of both the employer and employee.

Any changes to the salary must also be documented in writing and signed by both parties. If an employer reduces an employee's salary without their consent, it can be considered a breach of contract and the employee may have the right to file a complaint with the Ministry of Human Resources and Emiratization.

Please feel free to reach out for further assistance.

Greetings,

What do you mean by a salary reduction when signing an employment contract? Do you mean a salary reduction below what was agreed upon in the job offer?

If you sign the contract agreeing to the reduction, the contract is the basis for determining the salary in the event of a dispute between the two parties.

However, we would like to point out in this regard that determining the actual salary can be proven using various legally prescribed methods of proof.

Dear Sir/Madam,

Thank you for your inquiry regarding the legality of salary reduction upon signing an employment contract in the UAE. I am pleased to provide you with the following information:

Under UAE Labour Law, it is not permissible for an employer to unilaterally reduce an employee's salary upon signing a new employment contract. The law stipulates that:

1. Any changes to employment terms, including salary modifications, require the written consent of the employee.

2. Alterations to employment contracts must be formally submitted to and approved by the Ministry of Human Resources and Emiratisation.

3. Employers are prohibited from arbitrarily reducing salaries or altering agreed contract conditions.

Should you encounter a situation where your employer proposes a salary reduction:

a. Carefully review the proposed changes.

b. Engage in a dialogue with your employer to understand their rationale and express your concerns.

c. Consider seeking legal counsel if necessary.

d. Be aware that you have the right to decline changes that are not in your best interest.

If you require further clarification or assistance, I recommend contacting the Ministry of Human Resources and Emiratisation or consulting with a qualified labor law attorney.

Please do not hesitate to reach out if you have any additional questions.

Yours sincerely,

Hello,

Thank you for reaching out!

Based on legal guidelines and our research, reducing an employee’s salary upon signing an employment contract - without the employee’s clear and prior agreement - is generally not permitted.

Any such change must be mutually agreed upon and clearly outlined in the contract to comply with labor laws.

I recommend booking a consultation with us so we can review your employment contract and advise you on your rights and options.

Please visit our website to schedule an appointment or to engage our services.

Best regards,

Hello,

The salary stated in the employment contract is the agreed amount between the employer and the employee.

If a salary reduction is to occur, it must be done with the consent of both parties. If an employer tries to reduce your salary without your agreement, this can be considered a violation of the employment contract.

You can file a complaint with the UAE Ministry of Human Resources and Emiratisation (MOHRE) for resolution.

Thank you for your inquiry regarding salary reductions upon signing an employment contract.

In the UAE, an employer may reduce an employee's salary, but it must be done in compliance with the UAE Labor Law.

Any change to the terms of employment, including a reduction in salary, should be agreed upon by both the employer and the employee.

The employer must ensure that the new salary still complies with the minimum wage laws, if applicable, and does not violate any other contractual or legal obligations.

If you are facing a situation where your salary has been reduced and you are unsure about the legality of it, I would be happy to review your case and provide legal guidance.

Feel free to reach out to me via WhatsApp or phone to discuss your situation further.

Best regards,

Suhail Rana

Greetings,

If the salary reduction occurs, it must have been approved by both sides.

Best Regards,

Hello!

Once an employment contract is signed, the salary cannot be reduced unilaterally by the employer without the employee's consent.

There are certain protections available to employees under the labor law for unjustified changes.