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Sharjah, UAE

What action can be taken against the company for reducing salaries without consent?

Good day,

I am working for an LLC company in Sharjah for the past 4 years under a limited contract in mechanical engineering.

I am noticing the salary deductions every month for my team for the less sales figures and deduction from settlements for visa cancellations.

1) Can the employer deduct visa charges and dispute payments from the clients from employee settlement?

2) Can I register a complaint against this and how far it will be favorable on my side (real rime frame and expenses)?

Since my employer is financially strong and legally sound in the UAE, the company is taking wrong actions likely salary deductions for less sales figures, deduction in settlements and leave salaries during the end of the contract and imposing competitor clause by altering the documents during the renewal.

Kindly advise legally.

Hussain Lootah & Associates
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7 Oct 2021, 04:34

Dear Questioner,

I notice that you have multiple concerns regarding the employment and the actions of your employer.

Firstly, please note that your employer is not legally entitled to deduct the salaries without the employee's written consent.

If your employer is deducting the visa, insurance or cancellation charges... etc. from your salary, this is clearly against the UAE Labor Laws.

Any customer outstanding shall not be deducted from the employee's salary. You may register a complaint against your employer with the appropriate authority [MoHRE or free zone authority as applicable].

Further, including non-competition clauses during the renewal is not something you can object to. But you may understand the ambit of such clauses in practical means.

Finally, regarding the time frame and cost, please note that it depends upon the complexity of your claim. Hence it depends upon case to case.

Please feel free to contact me if you need any further clarification on this point.

Regards,

Rajasree Ravivarma

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