Q: Dear Madam, Our management has decided to change the salary structure where we used to pay 60% of Gross Salary as Basic Salary. Now the management wants to change the basic salary of employees to 40% and the remaining amount to be included as other allowance. There will not be any decrease in the salary but there will be a change in the basic salary percentage, is this allowed in the UAE (Our company is in Dubai, a mainland company, sole establishment)? Is it legal to take this step? If yes, then under which article can the change take place? Do we need to settle gratuity based on the current basic salary and revise the contract or we can just change the basic as we are not reducing the gross salary? Please advise.

Q: Dear Sir/Madam, I have worked continuously for a company for 10 years and am now being retired. My original contract was signed in 2013. However, in 2018, we were asked to sign a new contract and were given a gratuity payment. On 1 January 2023, we were given another new contract which further reduced the gratuity. Each new contract has reduced the gratuity from the original contract. I understand that contract amendments should not disadvantage employees. Therefore, should the gratuity be paid at the original, most beneficial rate for the employee?

Q: Dear Sir/Madam, If the company HR is now forcing me to sign an addendum to my contract to give up a benefit in my original contract, and is threatening to fire me if I do not sign, what is the best way to protect myself? The benefit they want to remove is that "upon completion of each year of service, staff will receive two additional full months' salary, according to their performance appraisal." My performance appraisal entitles me to the full two months' salary, but the new GM is asking HR to have all staff sign the addendum to give up this benefit, or they will be fired.

Q: Dear Sir/Madam, Can we reduce the basic salary of an employee (UAE - MOHRE)?

Q: Hi, I would like to inquire whether an employer has the right to revoke a benefit that was previously granted to an employee. For instance, if a company provided family status to some employees and gave family tickets in a given year, can they revoke it the following year?

An interview-format article covering the topic of employment termination without a valid reason in the UAE. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW. Ludmila discusses the aspects of termination, like notice periods, end of service benefits, arbitrary dismissal, unpaid salaries etc.

The UAE has adopted a major reform in its legislative system that brought about 40 new laws and amendments to the company law, criminal law, personal status, among others. The amendments aim to develop the legislative structure in various sectors, the labor law being one of these, was the most recent. We try in this article to shed light on the changes introduced with the new labor law and their significance on both, the employer and employee.

The provisions of this Law, known as "UAE Labour Law", govern the relationship between employers and employees and other labour matters in the United Arab Emirates. There are special labour related regulations applicable in some of the free zones in the UAE.

This Decree sets the rules and conditions for the termination of fixed-term (limited) or unlimited (not term-bound) employment contract between employer and worker in the United Arab Emirates.

The provisions of this Decree-Law, known as "New UAE Labor Law", govern labour relations in the private sector of the United Arab Emirates. The New Labor Law repeals the previous UAE Labor Law (Federal Law No. (8) of 1980).