Deducting housing allowance from end of service gratuity upon resignation

According to the Labor Law, the employer may deduct any debts owed to him in the service of the worker from the end of service gratuity, and since the employer paid you the rent without committing to the work contract, he may deduct the rest of the bonus and in relation to the annual leave allowance to obtain a leave allowance for a period of 30 Days calculated on your basic salary.

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Dear questioner,

It depends on the contract signed with the company and the internal regulations of the company.

If we are able to define it as an allowance or as a reward to employees, each will have a different response.

For the 30 days leave per year, it has to be pro-rated to the service period.

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Taken Care & Answered by,

Mohamed Noureldin

Legal Consultant (Licensed in Dubai)

Dear questioner,

This may depend on the employment contract you have with your employer. However, according to UAE Labour Law, the employer is entitled to deduct any debts owed to the company (i.e. your housing allowance from your last day of work until the end of the year), and your 30 days of annual leave will be pro-rata from 01 January until your last days of work.