Questions & Answers
Salary deduction during COVID-19 pandemic while the company is not affected
Good day,
Our company plans to deduct 20% of our salaries since COVID-19 affected the market. We are in the shipping industry. We are still performing very well and the revenue is not affected.
The company insists to deduct our salaries because its international entity is not working very well in other regions. Is this supported by the labor law of the UAE?
Please advise!
Dear questioner,
If the branch in the UAE is not affected and the company here is doing well, then the company has no legal ground to reduce or deduct the salary.
Dear questioner,
This is a very large subject, often raised by employees.
In order to know your rights, I suggest checking this article. There, you will find all the necessary information you need to know about the current situation.
In case you have any questions, please feel free to approach me via email.
Best Regards,
Raluca Gatina.
Hi,
It was illegal to reduce or deduct the salary of employees under the UAE law without a change in the labor contract.
However, MOHRE passed a resolution today regarding COVID-19 problem that they permit the companies to make a contract between the employee and the employer regarding the reduction of salary and that should be registered with MOHRE.
Therefore, if you both agreed for deduction or reduction, it can be possible, otherwise, it is against the law.
For further consultation please call or WhatsApp me.
