Questions & Answers
What is the employer entitled to deduct from employee who left before completing one year?
Hi,
I have a concern about the final settlement.
We hired two employees who completed their 6 months probation period but haven't completed one year yet.
We spent almost AED 20,000 on both of them. Now they resigned from their post.
I spent on the details are as below
1. Medical Insurance + 2. Absconding Charges + 3. Overstay Payments + 4. Visa Charges.
Can you please confirm which amount I can deduct from their final settlement?
Dear Client,
Thanks for your question, I hope you are doing well. I will definitely assist you with this matter.
In the UAE, regarding deductions from employee final settlements:
1. Medical Insurance is typically not deducted after visa cancellation.
2. Absconding Charges and Overstay Payments can be deducted if legally obligated according to the employment contract and labor laws.
3. Visa Charges are usually covered by the employer and not deducted from final settlements, especially after probation.
For any further legal assistance, you can WhatsApp us. We have an extensive team of knowledgeable and experienced lawyers to provide the legal assistance you need.
We will definitely be happy to help you.
Thanks & Regards
ABDUL WAHIED
Hi
Pursuant to your query, you can deduct, absconding charges and overstay payments.
And if any training is given and mentioned in the agreement, you can deduct that too.
However, the visa cost can't be deducted.
As per the law and contract, you can deduct the recruitment expenses from the final settlement. If nothing is mentioned in the contract, then you can't.
If you want more clarification we will arrange a legal consultation session for a charge of 28$.
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