A friend resigned from her job on April 1 with a notice period of two months. The company she works for did not give her any pay increase or back pay from January 2015 until now. The company usually gives an annual increase in February but this year it was given to all other employees in April but my friend was not included. Does an employee still get salary increments when they resign having given notice? Can they take legal action? It seems to me like the company does not want to pay and is trying to save money. DM Abu Dhabi
I would be surprised to see any company giving a pay increase to an employee who has handed in their resignation and this is not a general expectation. I understand that an employee would only have a legal case if a guaranteed increase was included in the contract terms, but I would also question whether it is worth taking action over what is likely to be a relatively small salary increase for a period of just a few months. Engaging a lawyer can be expensive, likely to be more than the amount potentially payable, and I would not expect the Ministry of Labour to take action in such a case.
I have resigned from my job after seven months. My work visa is for two years and I have a two-year limited contract but my company is insisting I pay them 45 days of my salary. Do I have to pay this to leave? EG Dubai
Specific rules pertain to fixed contracts that are designed to protect both the employee and the employer should either side wish to break the contract terms. Both parties are bound by the terms that were agreed at outset. This means that should an employee wish to leave employment before the end of the agreed term, now usually two years, they are liable to pay a penalty. Article 116 of UAE Labour states: “If the contract has been terminated on part of the employee ... the employee becomes liable for compensating the employer against losses incurred by him in consequence of contract termination, provided that the amount of compensation, may not exceed half a month’s pay for a period of three months or for the remaining period of contract whichever is shorter, unless the terms of the contract provide otherwise”. Had the employer chosen to break the terms they would have to pay a penalty to the employee. EG should also be aware that as she has been with the employer for such a short amount of time she is likely to receive an employment ban of at least six months.
I recently resigned from my company after 18 months. They are charging me Dh3,295 worth of recruitment costs and I find this amount too much. They have charged less to other people who left earlier than me and I feel it's not fair I should pay so much. Is there anything I can do? BW Dubai
It is quite clear under UAE law (per ministerial order 52 of 1989, Article 6) that a company is not permitted to reclaim the cost of employing someone from that person should they leave. BW should contact the Ministry of Labour helpline on 800 665 to make a complaint against the company and not sign any paperwork agreeing to make this payment.
Keren Bobker is an independent financial adviser with Holborn Assets in Dubai, with more than 20 years of 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. Readers are encouraged to seek appropriate independent legal advice.
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