Questions & Answers
Questions & Answers
9 available 9 • View allEmployer's right to deduct debts of employees from their end of service gratuity
3
Q: I was working in a company in the UAE for five years. In the UAE they do not have a retirement plan for expats, only End of Service Allowance (EOSA). My employment contract is an open contract. No contract duration.
I had taken a loan from the company. I borrowed the funds to support my children education. I had been approved for the loan given I have a salary.
The company decided to terminate the employment of about 400 employees. I did not request to be terminated. No package was given at all for compensation except EOSA plus ticket and freight cost.
I recently received the company Draft Final Settlement document whereas the EOSA amount that I was hoping to use to survive and provide food and shelter for my family was taken away completely and applied towards paying the loan.
They fired me, I did not ask to be fired. They have broken their side of the contract.
What legal recourse do I have for not accepting the company literally taking away my EOSA and leaving me bone dry?

Sep 22, 2017
5951
Labour complaint against an employee for settlement of dues upon resignation
13
Q: Hi,
We have an employee who has resigned and completed the notice period. We want to settle his dues however he disagrees on certain deductibles such as excess Etisalat bills made due to personal calls (international hometown), damages undergone to the vehicle and petty cash collection without authorized approvals.
We have approached him and asked for clarification but he disagrees on any deductibles. Despite having evidence on clear information and asset tracking he denies on all deductibles. He has raised a labour complaint on us for settlement of dues.
Need advice. He hasn’t now approached Labour Department and despite that we have discussed but he doesn’t seem to mutually settle. Since there isn’t anything in writing with Labour we have approached ministry to complain against him also. This is advice given by Labour Department.

Nov 7, 2017
8344
Unfair deduction from the gratuity upon resignation
5
Q: 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?

Feb 22, 2016
3016
Asking an employee to pay all allowances back in case of resignation
1
Q: Hi all,
I Have a problem. I talked with HR today as I want to resign. He told me that I need to pay all allowances back to the company (home allowance etc.)!
When I checked my contract, I saw that it is mentioned that I should pay if I leave the company, but this is just the contract I signed online from a website.
I've also signed another contract with my wet sign (which is Arabic written also and sent to the government, I think) before signing another one, In that contract, nothing is mentioned like that. So is this legal?
Can they take allowances back?
Doesn't the official labor contract prevails over anything else I signed?

Nov 7, 2019
564
What is the basis for calculating annual leave salary upon resignation?
2
Q: Hi,
Please help me by clarifying the leave encashment claims during my resignation.
I have worked in a firm for 3 years and I have 25 days of annual leave pending. Is that on the basis of gross salary or basic + HRA?
Kindly advise

May 20, 2021
862
Reducing the gratuity of an employee upon resignation due to late attendance
2
Q: Greetings,
We hope you are well!
As we are processing the end of service gratuity for an employee (who resigned earlier), the daily attendance report during his employment (which all is available in official records) is showing that despite continuous official written notices (which are signed by him), he failed to follow the morning official starting working hours with continuous late attendance causing financial damage as work was delayed due to that.
We would like to know the rule which should be applied in order to deduct the late attendance hours during his employment out of his end of service gratuity (as per the biometric attendance report) due to the financial damage caused to the company.
Below are his employment details:
- Contract type: unlimited
- Start date: 13 July 2014
- Last day of service: 10 May 2021
- Notice period completed: 60 days approximately
- Reason for leaving the job: resignation from his position
- Basic salary: 4000 AED

May 25, 2021
428
Can the company take back the bonus that they confirmed?
1
Q: Can the company take back the bonus that they confirmed after 45 days and deduct it from your salary?

Jun 12, 2023
175
What are my labor dues after resignation if I worked for a company for over 7 years?




2
Q: I have worked for a free zone company for over 7 years. The company provided me with a share and changed my visa from a Fujairah free zone to a Dubai free zone during the 7-year duration.
My salary has changed from 6.5k to 25k in these 7 years. If I resign, I am aware I'm entitled to some benefits.
Can I have any guidance on this?





+3
Jun 4, 2024
157
I was terminated on garden leave. Can the employer deduct my transportation allowance from the notice period?



0
Q: I am seeking clarification regarding the notice period and allowance deductions in my final settlement.
My work email was disabled immediately upon termination, and I was informed that I do not need to serve the notice period.
However, I have been informed that the transportation allowance will be deducted from the notice period in the final settlement.
Could you kindly confirm if it is a standard practice or aligned with company policy to deduct the transportation allowance from the notice period, especially given that I am not actively serving it?




Nov 22, 2024
123
Legal blog
2 available 2 • View allIs a Barter Gratuity Possible in the UAE? 8
Issue: An employee resigned from the job after working for 5 years, and signs a letter addressed to the employer that he wants his gratuity to be paid only after his customer pays the employer. Therefore, has the employer defaulted for End of Service (EOS) payment under the UAE Labour Law?
Oct 5, 2017
9101
An Overview of the New UAE Labor Law and Recent Amendments of 2024 233
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.
Sep 10, 2024
92211
Laws & Regulations
3 available 3 • View allFederal Law No. (8) of 1980 Concerning the Regulation of Labor Relations 53
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.
Apr 20, 1980
103737
Ministerial Decree No. (765) of 2015 On Rules and Conditions for the Termination of Employment Relations 8
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.
Sep 27, 2015
12454
Federal Decree-Law No. (33) of 2021 On the Regulation of Labor Relations 34
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).
Sep 20, 2021
26861

Other answers by
الضمانات التي تحصل عليها شركة التمويل مقابل إعطاء قرض 2
حصلت على قرض شخصي وكريدت كارد من مؤسسة للتمويل بإجمالي ٥٠ ألف وتعثرت لفترة والآن يطالبونني بدفع مبلغ ٢٠٠ ألف درهم بالفوائد وكنت أعطيتهم شيك بقيمة ٤٢ ألف وقتها.
سؤالي:
هل يوجد سند لأمر داخل عقد القرض (الأبليكيشن) الخاص بالشركة التي وقعت معها في البداية؟
أم لا يملكون ضمانًا آخر يُمكِّنهم من مقاضاتي به سوى الشيك الذي أعطيته لهم فقط؟
مع جزيل الشكر!
May 19, 2021
518
تقديم دعوى ضد مقاول استلم دفعتين من المال وأوقف العمل 2
هناك مشكلة مع مقاول إذ اتفقنا على بناء ملحق داخل منزل خاص ووقعنا العقد واستلم أول دفعة.
اشتغل حسب العقد واستلم الدفعة الثانية وأوقف العمل ويرفض المواصلة. تبين لي بعدما حاولت أن أقدم شكوى ضده أنه يستخدم ختم وعقد لشركة منتهية في سنة 2013 ولا يوجد لديه أي ترخيص.
كيف أستطيع أن أشكوه وبنفس الوقت أواصل البناء؟
May 20, 2021
993
Can the wife file for maintenance in the UAE after judgement in home country? 3
My wife and I are non-Muslims. Divorce was settled in our home country court which decided that I am the custodian of the children and no alimony has to be paid to her.
Children are living with me here in the UAE. However, she still resides here in the UAE using a tourist visa. She is planning to file a Maintenance Case against me in the UAE Family Court.
Can she do that?
Am I obliged to pay her alimony?
Dec 7, 2020
1425
ماذا بعد الحصول على حكم في قضية عمالية؟ 4
فصلتني الشركة فصلاً تعسفيًا وقمت بمقاضاة الشركة والحمد لله حصلت على حكم بمستحقاتي المالية من رواتب متأخرة ومكافأة نهاية الخدمة.
تقدمت بطلب تنفيذ ولم تدفع الشركة لي أي مبالغ حتى الآن!
ما الخطوة الواجب فعلها في هذه الحالة؟
Oct 8, 2020
580
Cancellation of an off-plan property and seeking refund 2
Hello
I bought an off-plan apartment with a developer, paid half and the other half was supposed to be paid on receiving the apartment which was supposed to be received end of 2019.
But they postponed it till March 2020, and now the project is way behind and no improvement at all as I'm in phase 2 and they are still building phase one.
What can I do to get my money back?
Sep 26, 2020
719

Other answers by
Cancellation of SPA for delay in delivery and defaulting on payments 2
Hi
I bought an off-plan property from a developer in downtown during the peak time. My payment plan was based on construction with completion being Dec 2019. I have paid more than 50%.
I requested the developer to readjust my payment plan as the project is delayed. They moved on payment forward and sneakingly changed completion date to Aug 2021 in the document. The SPA still says Dec 2019.
Now I'm struggling to pay the next payment due to COVID-19 and project is completed 56% as par Dubai land department and 60% as per the developer. The developer is asking for payment and calling me every day.
My question is can I still use the delay in the project as a clause to cancel my unit?
Can I cancel my apartment and how much can the developer deduct?
After selling me, the developer started offering customers post-handover payment plans for 4 years, which is very unfair as even if I complete my payment, no one will buy from me as the developer is selling something with 4 years post-handover.
Can legal help be provided in this regard?
Jun 7, 2020
920
Easy way to know whether a job offer is real or scam 100
I am a health professional in Canada.
Years back, I posted my CV to work in the middle east on a job site in the gulf. Last week, I got 3 emails claiming from a general hospital in Abu Dhabi, a hospital Dubai and another medicare hospital in Dubai for online recruitment.
they showed interest in my CV. All emails were from free accounts (gmail.com address). I chose then to forward an email to the concerned HR department of the concerned hospitals.
I forwarded one email to the official email of one of the hospitals (as given on the hospital site). They replied and said, yes, the email is legitimate and you can apply with confidence.
Now I got an offer letter from Dubai hospital with handsome salary offer but from a Gmail address. They're asking me to start position in one month only and asking to contact a travel agency based in Dubai.
Is it a scam or true? I have forwarded the email to the HR department of the hospital to determine authenticity.
Jun 7, 2020
14675
Employee rights in case of changing an unlimited contract to a limited contract 7
Hi,
What is the law if an employer wants to change a contract from an unlimited to a limited contract?
Is the employer liable to pay the 3 months arbitrary dismissal (if valid) + other monies owed prior to changing the current unlimited contract to a limited contract?
Jun 7, 2020
4900
Terminating the SPA and claiming refund for changing specifications 2
Can a developer change the layout of the building as shown at the launch event and part of all brochures/online advertisements/model under the pretext that the same is not included in the SPA?
For the launch, we got convinced with the building design and layout but at delivery, it’s changed without prior intimation.
Can I make a legal case or can they take the guise that it’s not part of the SPA?
Can I get a refund for the 30% advance payment and refuse possession of the unit?
Jun 8, 2020
750
Inability to continue paying the installments of a property because of COVID-19 5
Hi sir,
I live in the UK. I am an investor and a broker for a property development company. One of my customers bought an off-plan property from it i.e just Cavalli Villa 2 years ago. 33% was completed and handover is due in 2021.
My client paid part of the deposit around AED 390000 (£80000) and she has been paying to the project for the last two years until early this year when COVID- 19 hit the UK. Since then, she has been ill and lost her job and, therefore, she is unable to pay.
My customer received a letter from the company saying that if the outstanding amount is not paid within 30 days, then they will take her to court. They say that they would cancel her plot and she will lose all MONEY paid so far.
My client needs payment delay until her situation improves but this request has been declined. The money secured under the ESCROW account. Can the developer have the power to take money from the escrow account?
What is her right under Dubai law? Can she do anything to avoid court order? The UK is in lockdown at the moment with no proper or normal banking functions.
Thank you!
Jun 9, 2020
1542

Premium
Other answers by
Labour rights for terminating a limited contract by the employer 0
Dear Sir,
My company made my position redundant due to the Coronavirus effect. I am under a limited contract.
With the end of service, they gave me one month notice period. Is it right or it should be 3 months?
Please clarify
Apr 12, 2020
664
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