Questions & Answers
If an employee resigns after 4 months, is the visa cost deduction full or pro-rated?
Hi All,
I just want to ask if an employee resigns after four months in the company, will the deduction of visa costs be the full amount, or will it be pro-rata from the date of joining until their last day?
Hello,
In the case of an employee resigning after 4 months of employment, the deduction of visa costs typically depends on the terms outlined in the employment contract. Here are key points to consider:
- Contractual Terms:
Most contracts specify if an employee is required to repay visa costs if they leave within a certain period (often 1-2 years). The terms of repayment, whether full or pro-rata, should be clearly stated in the contract.
- Pro-rata Deductions:
If the contract does not specify a fixed amount or repayment schedule, the company may deduct the visa costs on a pro-rata basis, depending on how long the employee worked before resignation.
This means the cost would be divided by the total contract duration, and the employee would only need to repay a portion of the costs proportional to the time they worked.
- UAE Labour Law:
According to the UAE Labour Law, if an employee leaves the company before completing their contract period, the employer may ask for reimbursement of expenses such as visa costs. However, the employer cannot charge unreasonable amounts, and it should be proportional to the time worked.
To proceed, it is advisable to refer to your employment contract and discuss the issue with the employer. If there is a disagreement, seeking legal advice can help clarify the situation.
For legal assistance, please contact us.
Thank you for reaching out with your question regarding visa cost deductions!
Under UAE labor law, employers cannot deduct visa costs from an employee’s salary unless there is a clear contractual agreement stating otherwise.
If such an agreement exists, the deduction should generally be calculated on a pro-rata basis rather than the full amount, covering the period the employee worked with the company. However, the exact legality depends on the terms of the contract and the specific circumstances of resignation.
To properly assess your case and provide guidance on the best course of action, I recommend a consultation.
Feel free to reach out to me directly via WhatsApp or phone at [----------] to discuss further.
Best regards,
Suhail Rana
