Q: Is there a maximum amount an employer can deduct from an employee's severance pay? A: 10% maximum, and if the damages are more, you can file a lawsuit against him. The employer's deduction should not exceed 5 days' salary per month, and any increase must be approved by the Labor Court…

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Max deduction for severance pay due to damage/negligence in UAE

Dear Questioner,

In the UAE, is there a maximum amount an employer can deduct from an employee's severance pay due to damage/negligence?

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Khaled Ebid

KHE Legal Consultancy

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26 Apr 2023, 09:38

Dear Questioner,

10% maximum, and if the damages are more, you can file a lawsuit against him.

26 Apr 2023, 09:57

Sir, is it 10% of his severance pay or 10% of his salary?

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Ahmad Amiri

Amiri Advocates & Legal Consultants

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26 Apr 2023, 10:08

Dear Questioner,

The employer's deduction should not exceed 5 days' salary per month, and any increase must be approved by the Labor Court.

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Ahmed Gabr

Elnaggar & Partners

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26 Apr 2023, 11:12

Dear Questioner,

Yes, as per the law 50% only of his monthly salary.

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Max deduction for severance pay due to damage/negligence in UAE