Employer forcing me to sign addendum to contract to give up benefit: What to do?

Questions & Answers

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Is it fair to reduce gratuity in employee contract amendments?

Q: Dear Sir/Madam, I have worked continuously for a company for 10 years and am now being retired. My original contract was signed in 2013. However, in 2018, we were asked to sign a new contract and were given a gratuity payment. On 1 January 2023, we were given another new contract which further reduced the gratuity. Each new contract has reduced the gratuity from the original contract. I understand that contract amendments should not disadvantage employees. Therefore, should the gratuity be paid at the original, most beneficial rate for the employee?

Apr 16, 2023

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What can I do if my company gave me bonus less than the amount we agreed on?

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

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Reducing the salary of an employee before termination

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

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Can an employer revoke a previously granted employee benefit?

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

Legal blog

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Termination Without a Valid Reason - What Can You Do?

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

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An Overview of the New UAE Labor Law and Recent Amendments of 2024

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

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Laws & Regulations

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Federal Law No. (8) of 1980 Concerning the Regulation of Labor Relations

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

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Ministerial Decree No. (765) of 2015 On Rules and Conditions for the Termination of Employment Relations

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

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Federal Decree-Law No. (33) of 2021 On the Regulation of Labor Relations

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

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Ahmed Mohammed Bashir

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How to claim compensation after receiving a court judgment in my favor for a car accident?

Good day, I need help, please. I was involved in an accident. I was run over by a car and I was not the guilty party. Now, I have received the judgment order from the court. How do I submit it to claim my compensation from the guilty party? Thank you!

May 2, 2025

Is overtime applicable on work-from-home days under company’s policy?

Hello, The company has a policy allowing employees to work from home once per week. Now, employees are asking if overtime is applicable for those who work from home as well. Could you please clarify? Thank you!

May 2, 2025

Can the landlord send me an eviction notice for non-payment despite submitting an offer and deposit at RDC?

I’ve lived in my building for over 4 years, with the most recent rent being AED 50,000. Each year, the management collects cheques and extra AED 2,400–2,500 cash (no receipt) for management and Ejari fees. My contract was due for renewal on 15 Feb 2025, but management delayed, demanding a 10% rent increase even though no formal 90-day notice and the RERA index did not allow it. After a month of excuses, the manager called on 12 March, insisted increase to 55K, and threatened eviction if I refused. When I referenced RDC, he hung up. The next day, he again made unprofessional remarks, so I decided to go with RDC. I submitted my offer and deposit on 13th March, but the management didn’t respond. The case went to the judge on 14 April he ruled in my favor. On 30 April, I applied for the execution of the ruling, and RDC says I can renew Ejari only on 8th May at DLD with cheques given to them. However, on 1st May 2025, I received a notarized eviction notice for non-payment of rent and communication. My question is, what will happen at DLD now?

May 2, 2025

Can I resign during the probation period without serving a three-month notice to take another job?

I am working in the private sector, and currently I am in the probation period. I got a government job, so I submitted a one-month resignation notice. My current company rejected my one-month notice and ordered me to serve a three-month notice (as per the contract). I enquired with One Time Centre, and as per their advice, after one month, I can stop work and register a complaint against my company. For this matter, how will the UAE law help me to solve it?

May 2, 2025

Can the employer force the housmaid to work for unlimited hours without rest?

Hi I'm a nanny, and at the same time, I work as a housemaid (khadama) here in the house. I work, but as I know, the nannies and housemaids have different rights, and my employer doesn't give me rest. My work starts at 7:30 am and then finishes at 10 pm or less. It depends on whether the baby is asleep or what time they will take on me if not yet asleep. Is this right? Also, at the time of eating, I'm still working because the baby is with me, so I just let her sit in her chair. That's how I eat. Please answer me. I want to know my rights. Because if I can leave during the 6-month probation, I want to take it if the employer is this kind. I don't know. They are also expats, but they don't follow the rules of the UAE regarding a housemaid.

May 1, 2025