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Unfairly fired with demands to repay housing allowance: Is it legal?

Dear Sir/Madam,

My employer (Federal) signed a 3-year contract with me. They have now given me 3 months' notice, ending my contract in May rather than August, saying that my contract was not renewed.

There was no reason given for my non-renewal. My evaluations have been consistently excellent. Further, they are now demanding 3 months of housing allowance be repaid. Is this legal?

Laila Hamza Al Mulla Advocates and Legal Consultants
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12 Apr 2023, 12:30

Dear Questioner,

According to the Labor Law, the employer may deduct any debts owed to him during the worker’s service from the end-of-service gratuity.

Since the employer paid you the rent without complying with the employment contract, he may deduct the rest of the debts.

With regard to the annual leave allowance, you are entitled to an allowance of 30 days' holiday calculated based on your basic salary.

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KHE Legal Consultancy
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12 Apr 2023, 13:07

Dear questioner,

The company has the right to terminate and not renew while adhering to the legal deadlines.

According to the Labor Law, the employer may deduct any debts owed to him during the worker’s service from the end-of-service gratuity.

Since the employer paid you the rent without complying with the employment contract, he may deduct the rest of the debts.

With regard to the annual leave allowance, you are entitled to an allowance of 30 days' holiday calculated based on your basic salary.

But it is preferable to review your employment contract first, because the answer may differ when reviewing your contract.

12 Apr 2023, 14:55

The housing allowance was given for 1 year. The contract was for 1 year.

The employer terminated the contract 3 months early without cause. I spent the housing allowance on housing for 1 year.

Now, the employer wants three months of housing allowance back.

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Amiri Advocates & Legal Consultants
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14 Apr 2023, 21:43

The law does not prevent the employer from terminating the employee's employment contract, and the employee has the right to seek compensation for the employer's non-compliance with the contract.

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