The company I work for has reduced our salaries with no notice whatsoever. Despite being in a senior position I only found out about it two days before payday and it appears to be the same across the whole company. The company forced us all to sign a letter, although I have not done so. People have had their salaries reduced by Dh5,000 to Dh10,000, and they want to reduce mine by Dh20,000 even though I have grown their business. Now they are forcing me to resign with a punishment of a Dh2,000 fine; they are bullying me and things have been said by HR and the head of the country division. I no longer have the desire to work there although I feel they will terminate me anyway. They have already disconnected my email, and my salary is late. What can I do and where do I stand? ES, Dubai
I understand this is a private company, not government, so UAE Labour Law will apply in full. This means that the employer has no right to force an employee to accept any changes to the terms of their employment, including their salary, without the employee’s full agreement. In the case of the other employees who have signed paperwork to this effect this will be taken as acceptance of the lower salary. An employer also cannot arbitrarily fine an employee and if a termination is due to a reduction in salary this would be considered arbitrary dismissal, in accordance with Article 122 of Labour Law, which states: “Termination by the employer of an employee’s service is considered arbitrary if the cause for such termination has nothing to do with the work. In particular, termination is considered arbitrary if the employee’s service has been terminated on grounds, or a reasonable complaint lodged by him to the competent authorities, or on grounds of a justifiable action brought by him against the employer.” Non payment of salary is also not permitted and I recommend ES register a case at his local labour office, or call the government helpline (800 665) for assistance, as this company is breaking many rules and acting unfairly.
I have worked for my current employer for 18 months under a limited contract. I handed in my resignation with one month's notice, as it says in my contract, but this period has already finished and the company is still not releasing me. I have found a new job and I know I have to pay a penalty for breaking the contract. The new company is asking me to join but I am unable to until my current company lets me leave. Is there anything I can do legally? AI, Sharjah
An employer may not refuse to accept a person’s formal notice of resignation, even if the employee is on a limited contract, provided notice is given, as it has been in this case. This is in accordance with Article 117 of Labour Law, which states: “The employer and employee may terminate the employment contract with unlimited period, for a valid reason at any time after conclusion of the contract by written notice duly given to other party, thirty days at least prior to termination.” AI should take action by visiting his local labour office to register a complaint against his employer. He can also start the complaint process by calling the helpline at the Ministry of Human Resources and Emiratisation, the new name of the Ministry of Labour, on 800 665 and they will assist him.
Keren Bobker is an independent financial adviser and Senior Partner with Holborn Assets in Dubai, with over 20 years’ experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE.
The advice provided in our columns does not constitute legal advice and is provided for information only.
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