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The company wants to cut my basic pay under a new contract. What to do?

Dear Sir/Madam,

I currently have an unlimited contract with no notice period provided. However, my residence visa, work permit, and EID are expiring, and the company wants to cut my basic pay under a new contract, which is unacceptable to me.

I have served for less than 5 years. I have the following questions:

1. If termination does not occur, can I continue working beyond the expiration of my visa, permit, and EID?

2. Is there a minimum notice period for termination of employment under an unlimited contract after the expiration of my visa, permit, and EID?

3. What is the EOSB after one year but below 5 years as of 2023, one month per year of service or less?

Thank you for your assistance!

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Laila Hamza Al Mulla Advocates and Legal Consultants
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22 Feb 2023, 09:18

Dear questioner,

Article 132 of the UAE Labour Law stipulates that a worker is entitled to end-of-service gratuity:

"A worker who has completed one year or more of continuous service shall be entitled to end-of-service gratuity upon the termination of his service".

1. Twenty-one days' pay for each of the first five years of service.

2. Thirty days' wages for each year of service beyond the first five years. However, the total amount of gratuity shall not exceed two years' wage.

The customary notice period is 30 days unless the employment contract stipulates otherwise.

It is not possible to work with an expired card and an expired work permit.

23 Feb 2023, 05:55

Thank you.

Could presenting a new limited contract with a change in compensation (and declining to proceed with work permit renewal when it is not accepted, but not officially terminating an employee) be considered arbitrary dismissal?

25 Feb 2023, 09:18

no

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Mohamed Bakheet Advocates & Legal Consultants
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22 Feb 2023, 17:11

File a complaint with the Ministry of Human Resources and Emiratisation to claim labor dues.

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