What should I do if the company cuts my salary by 60% without my consent?

Dear Questioner,

Thank you for your message!

Since your contract is based on Malaysian law, and your employer is trying to reduce your salary by 60% without your consent, this could be a breach of contract.

If you haven’t agreed in writing, they cannot change your salary unilaterally.

You can formally inform the company that you do not accept this change and request either a fair temporary adjustment or proper compensation if they intend to end your employment.

If they still reduce your salary without your agreement, you can seek legal advice from a lawyer in Malaysia to explore your rights under employment law.

Let us know if you'd like help drafting a formal letter or connecting with a legal expert.

Best regards,

Mohammed Salah

Legal Consultant

Hello,

According to UAE law, an employer is not allowed to reduce an employee’s salary without their written consent.

If your salary has been reduced by 60% without your agreement, this is considered a breach of contract, and you have the right to take legal action to claim your rights.

Our legal center specializes in such disputes, and you can contact us via WhatsApp for further details and legal support.

Dear Inquirer,

Thank you for reaching out!

If your employment contract is governed by Malaysian law, the company cannot legally impose a 60% salary reduction without your consent.

Doing so may constitute a breach of contract or constructive dismissal, which could entitle you to compensation or legal remedies.

Given the cross-border nature of your employment (working remotely for a UAE-based company under Malaysian law), we strongly recommend a detailed legal review of your contract and options.

Book a consultation with us to receive tailored advice and take appropriate action to protect your rights. We can also represent you if legal steps are needed in the UAE.

Dear questioner,

As the company is registered in Dubai, the primary labour law governing your employment relationship is the UAE Labour Law.

Even though you are based in Malaysia, the company's registration in the UAE places you under its jurisdiction for employment matters.

However, if you have a separate agreement for choosing the law, then we can assist you in enforcing the contract in the UAE.

If you need our assistance, kindly share your WhatsApp number.

Dear Client,

Thank you for sharing the details of your employment situation!

Based on the information provided, please find below a summary of your rights and recommended next steps:

1. Unilateral Salary Reduction:

Under both Malaysian and UAE employment law, an employer is not permitted to unilaterally reduce an employee’s salary or alter the terms of employment without the employee’s explicit written consent.

A 60% salary reduction imposed without your agreement would generally be considered a breach of contract.

2. Jurisdiction and Applicable Law:

Since your contract is governed by Malaysian law, your rights and remedies will primarily be determined by Malaysian employment legislation.

However, as your employer is a Dubai-registered company, UAE law may also be relevant, particularly if any legal proceedings are initiated in the UAE.

3. Recommended Next Steps:

- Review Your Contract: Carefully examine your employment contract for clauses related to salary adjustments, retrenchment, and dispute resolution.

- Document Communications: Retain all correspondence with your employer regarding the proposed salary reduction and your responses.

- Formal Notification: Communicate in writing to your employer that you do not consent to a 60% salary reduction and reiterate your proposed alternatives.

- Legal Recourse: If the company proceeds with the salary cut without your consent, you may have grounds to claim constructive dismissal or breach of contract. This could entitle you to retrenchment compensation or other remedies as stipulated in your contract.

- Consult Legal Counsel: Engage a qualified employment lawyer to assess your situation, advise on the best jurisdiction for your claim, and assist with negotiations or legal proceedings.

4. How We Can Assist:

Our team specializes in international employment law and cross-border disputes. We can assist you with:

- Reviewing your employment contract and advising on your legal position,

- Drafting formal communications to your employer,

- Negotiating on your behalf for a fair resolution,

- Initiating legal proceedings in Malaysia or the UAE, if necessary, and

- Ensuring you receive all compensation and entitlements due under your contract.

If you would like to arrange a confidential consultation to discuss your case in detail, please let us know your preferred time and contact method. We are committed to protecting your rights and achieving the best possible outcome for you.

Please note: The above is general guidance and does not constitute legal advice. For advice tailored to your specific circumstances, we recommend scheduling a consultation with our legal team.

We look forward to assisting you.

Kind regards,

According to UAE law, a salary reduction must be agreed upon by both parties. If they reduced it without your approval, you can file a complaint against the company at the UAE Ministry of Labour.

If the company cuts your salary by 60% without your consent, you should first review your employment contract carefully, document all communications, communicate clearly with your employer about your position, seek legal advice from an expert in Malaysian labor law, consider filing a complaint if necessary, and prepare for various outcomes based on how events unfold.