Questions & Answers
Questions & Answers
7 available 7 • View allReducing the salary of an employee before termination
3
Q: Hello Nicole,
Greetings!
I have been working in a private company in Dubai for the last 13 years under an unlimited contract. Recently, they have made my position redundant.
I am now serving 3 months notice period as per the labour contract (2 months already served, I am now in 3rd and last month).
My employer has put me on forced paid leave to adjust my notice period against leave days balance. I need some clarification per below, please.
1. The employer is paying me a full salary for a notice period of 3 months. However based on the recent announcement from the Ministry of Labor (for Private Co. employees), can my employer reduce my salary temporarily/permanently in this last month of notice period?
2. If the answer to question 1 is YES, how will it impact the calculation of my end of service benefits like gratuity or leave balance encashment? Will it be recalculated based on the revised (reduced) salary?
3. Am I eligible to claim any other Termination/redundancy pay apart from gratuity and leave balance encashment?

Apr 6, 2020
1095
Is it legal to reduce the salary and gratuity of an employee




2
Q: In the situation of the pandemic, my employer wants me to sign on reduced pay and calculating everything based on that like gratuity, unpaid leaves and notice period salary.
What can I do? Also, how much will be the legal fees to fight a case?





Apr 20, 2020
4510
The company reduces the EOSB after calculating it. What to do?

2
Q: Dear sir/madam,
I have an issue with my end of service. The company made calculations on one amount and sent me the form, signed by the finance director.
Now they say that there was a miscount and the amount has been reduced significantly.
I need advice and assistance from a lawyer.


Aug 17, 2022
220
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
165
What can I do if my company gave me bonus less than the amount we agreed on?

0
Q: I work in DAFZA. My company does business in USD. My company gave me a target letter that if I did X amount in Euros, then I'll get AED 57K as an incentive.
I managed to do 102% and was expecting an incentive payout accordingly. But they gave me a bonus as per 94% target achievement. They mentioned that the exchange rate was favorable all throughout the year for USD.
But if they calculate the sales at the original exchange rate used while deciding the target, I have achieved only 94% of my target. 2 things:
1. They never mentioned in writing anywhere that the final calculation would be based on the fixed exchange rate.
2. Target versus Achievement as per our ERP system, which I used for tracking my achievement status showed me the result as per the actual exchange rate on that day and hence I assumed that I hit 102%.
No one pointed out in the whole year that my achievement was not 100% and there's is nothing in writing reflecting that.
How can I ensure that my company pays me the correct amount?


Jul 13, 2023
122
Employer forcing me to sign addendum to contract to give up benefit: What to do?

1
Q: Dear Sir/Madam,
If the company HR is now forcing me to sign an addendum to my contract to give up a benefit in my original contract, and is threatening to fire me if I do not sign, what is the best way to protect myself?
The benefit they want to remove is that "upon completion of each year of service, staff will receive two additional full months' salary, according to their performance appraisal."
My performance appraisal entitles me to the full two months' salary, but the new GM is asking HR to have all staff sign the addendum to give up this benefit, or they will be fired.


Aug 24, 2023
204
Can an employer revoke a previously granted employee benefit?




1
Q: Hi,
I would like to inquire whether an employer has the right to revoke a benefit that was previously granted to an employee.
For instance, if a company provided family status to some employees and gave family tickets in a given year, can they revoke it the following year?





Mar 29, 2025
64
Legal blog
2 available 2 • View allTermination Without a Valid Reason - What Can You Do? 12
An interview-format article covering the topic of employment termination without a valid reason in the UAE. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW. Ludmila discusses the aspects of termination, like notice periods, end of service benefits, arbitrary dismissal, unpaid salaries etc.
Jan 15, 2020
5483
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
90798
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
103643
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
12410
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
26519

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Is the compensation for notice period deducted on the basis of full salary or basic salary? 0
Hello,
I understand that if anyone wishes to resign without serving their full notice period, they are supposed to compensate the employer for the remaining time that they didn't serve the notice, also known as "notice Compensation".
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Can I hold the delivery of goods to a buyer outside the UAE if he defaulted on payment? 0
I, as a UAE-based Seller, entered a sales agreement with a KSA-based Buyer. The Buyer defaulted on the LC payment, breaching the contract.
The goods are stuck at the port as they need original documents, which I am holding to recover the outstanding balance.
They later made a partial payment but now threaten to cash the PBG (UAE bank) I provided if don't release the document.
The contract mandates DIAC arbitration but lacks a governing law clause. I need advice on:
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Does unpaid leave include weekends if they fall within the leave period? 0
Hello,
If I take unpaid leave and a weekend falls in between, will the weekend also be counted as unpaid leave, meaning I will not receive a salary for those weekend days?
Thank you!
Mar 23, 2025
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View allIs the compensation for notice period deducted on the basis of full salary or basic salary? 0
Hello,
I understand that if anyone wishes to resign without serving their full notice period, they are supposed to compensate the employer for the remaining time that they didn't serve the notice, also known as "notice Compensation".
Is this notice compensation deducted based on the full salary or on the basic salary?
Mar 21, 2025
72
Can a registered company work with a freelancer who does not have a freelancer permit? 0
Hello,
Can a registered company work with a freelancer who does not have a freelancer permit?
At the same time, they are employed by another company.
Mar 21, 2025
59
Can I hold the delivery of goods to a buyer outside the UAE if he defaulted on payment? 0
I, as a UAE-based Seller, entered a sales agreement with a KSA-based Buyer. The Buyer defaulted on the LC payment, breaching the contract.
The goods are stuck at the port as they need original documents, which I am holding to recover the outstanding balance.
They later made a partial payment but now threaten to cash the PBG (UAE bank) I provided if don't release the document.
The contract mandates DIAC arbitration but lacks a governing law clause. I need advice on:
1. Which law applies to this dispute?
2. Where can I seek an injunction to prevent PBG encashment, given the Buyer’s bad faith and breach? Or should I send a letter to their bank with the brief above?
Kindly advise.
Mar 21, 2025
49
Does unpaid leave include weekends if they fall within the leave period? 0
Hello,
If I take unpaid leave and a weekend falls in between, will the weekend also be counted as unpaid leave, meaning I will not receive a salary for those weekend days?
Thank you!
Mar 23, 2025
84
I purchased a rented apartment in Abu Dhabi. Can I evict the tenant immediately if there is no Tawtheeq contact? 0
I recently purchased a rented apartment in Abu Dhabi and agreed to honor the existing lease. After the transfer, I discovered that the lease is not a Tawtheeq contract, meaning it is not officially registered.
Since I am not receiving rent (as it was a non-refundable arrangement with the seller), I prefer not to issue a new Tawtheeq. I also want to avoid a formal notice to vacate to prevent disputes, as I plan to move in.
However, I have already informed the tenant that I will not be renewing the lease. I need legal advice on the implications of proceeding without a Tawtheeq contract.
What are my risks, especially if the tenant refuses to move out?
What legal actions, if any, can the tenant take in this situation?
Mar 25, 2025
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