Is it legal to reduce the salary and gratuity of an employee

Dear questioner,

As per the recent guidelines issued by the MOL, any reduction in the salary of an employee has to be done in consultation with the employee. it can not be forced upon.

The employee has to agree to any salary reduction being done by the employer.

If need be, kindly contact us by phone for a detailed discussion or write to us at our email for further assistance.

Dear Questioner,

Any reduction of salary shall be in accordance with the ministerial Resolution no. 279 of 2020.

As per article 2 of the said Resolution (temporarily or permanent reduction of salary). However, such should be mutually agreed between the Employer and Employee.

The employer is not entitled to reduce the salary without the consent of the worker.

Dear questioner,

Your employer has the legal right to reduce the salary payment but he doesn't have the right to reduce the EOSB.

For any further inquiry please feel free to contact me by phone or at my email address.

Thanks

Article 2 of Resolution 279 states as follows:

Companies seeking to adjust their business structure in the wake of COVID-19 are to gradually adopt the following actions, in agreement with their employees:

1) Implementation of a remote working system.

2) Grant paid leave.

3) Grant unpaid leave.

4) Temporary salary reduction during the referenced period.

5) Permanent salary reduction.

Article 3 of Resolution 279 states that any Companies affected by COVID-19 and having to implement the precautionary measures must further register their ‘redundant workforce’ in the Virtual Labour Market to enable other companies to be able to utilise the affected employees on a rotation system dependent upon their needs.

The affected Companies will still need to remain committed to their employees in terms of accommodation and other entitlements, save for salary, until the employee obtains another job or leaves the UAE. It would appear that the above system is to be implemented once any of the five precautionary methods are taken, however it seems that the implication is that it is only if the employee is redundant. Therefore, employees working remotely whom are still utilised and productive would not likely fall into the intended category. Further to this, only point 3-5 will require employee consent.

Also without your consent the employer can't reduce your salary, but have right to terminate you.