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Unfair deduction from the gratuity upon resignation

Three years ago, my employer provided me with a laptop to use for the work purpose. Some time ago, the company laptop broke down and I used at work my own laptop.

Now, I am resigning from the company and my manager deducted the cost of the company laptop (the price they paid 3 years ago) in full from my end of service gratuity.

He explained to me, that because the laptop is not repairable, I have to refund to the company its full price.

I believe that it is not fair, as there is wear and tear of the device and its price after for years of use should be considerably lower.

Am I right? And what can I do in this situation?

Hadef & Partners LLC
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22 Feb 2016, 08:11

I am going to be honest with you, the employer always has the upper hand and he is the stronger party in these cases and scenarios.

Definitely, he does not have the right to deduct the price from your end of service gratuity, and even if he did, he should not calculate the full value of the laptop.

He should consider the depreciation value of each year from the date of purchase until now.

However, in these cases (depending on how much the deducted amount is) I usually advise my client to accept the situation as it is a hassle for you to reject it and go to The Ministry of Labour to file a complaint and go to court for a small amount.

You do not have the time or the money to do so, but the employer does have the time and the money to do this.

Advice: If the deducted amount is high or in case you want to pursue this, then the best way is to do the following:

1- Accept the end of service gratuity and receive it.

2- Make him cancel your visa first so you can work somewhere else and not be stuck with him for as long as the case goes.

3- File a complaint before any branch of Tasheel (you will need a copy of your labour contract, Emirates ID, residency).

4- Tasheel will refer the case to the Ministry of Labour and they will schedule a meeting for the employee and the employer to try and solve the dispute amicably.

5- If there's no settlement, the MOL will transfer the case to court and you claim the amount of the end of service gratuity which was illegally deducted.

6- Get a judgment and file an execution case to collect the money.

Note: you do not have to pay court fees.

Finally, as you can see it's a long procedure to take a small amount, put in mind the time and the effort and the money.

I am not trying to tell you not to do it, I am telling you what you will be facing should you choose to go through with it.

Hope the above is helpful.

Alaa Momtaz

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