Under the UAE's labour law, employers must bear the cost of visas and residency renewals. Chris Whiteoak / The National
Under the UAE's labour law, employers must bear the cost of visas and residency renewals. Chris Whiteoak / The National
Under the UAE's labour law, employers must bear the cost of visas and residency renewals. Chris Whiteoak / The National
Under the UAE's labour law, employers must bear the cost of visas and residency renewals. Chris Whiteoak / The National

'Can my company deduct visa costs from my salary?'


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I am seeking advice regarding my visa and residency renewal charges, which are deducted by my employer from my salary. They do this to everyone but I have read that it is not allowed. I am working for a private company in Abu Dhabi. NK, Abu Dhabi

The actions of this employer are against the law and this has always been the case. It is also clearly stated in the new labour law.

Article 6 of the law, which covers the recruitment and employment of workers, says: “The employer is prohibited from charging the worker for the fees and costs of recruitment and employment or collecting them from him, whether directly or indirectly.”

This topic has also been covered in several ministerial decrees but the new law makes the situation very clear.

An employer also cannot include a clause in an employment contract that states that visa costs and residency renewal charges will be passed on to the employee.

It is illegal and will not be permitted in the official contract that is lodged with the Ministry of Human Resources and Emiratisation.

If an employer illegally charges this cost to workers, they can register a complaint against the company and request a refund via the ministry, either through a chat line on its website or by telephone on 800 665.

I joined my current employer on August 15, 2017, and plan to resign this summer. I believe the end-of-service benefit rises incrementally once that five-year threshold is crossed. I have heard that being on notice can negate registered service but there is a lot of conflicting information.

When is the optimum time to hand in my notice, after August 15 or a month beforehand? SV, Dubai

When the gratuity payment is calculated, it must cover the full period of service with an employer and that includes the notice period. The only exception is stated in Article 51.4, which says that any “unpaid days of absence from work shall not be included in the calculation of the service term”.

Under the old labour law, the gratuity was reduced if an employee resigned with fewer than five years of service but this is no longer the case.

When the new labour law came into effect last month, the rules changed. Anyone who has worked for more than a full calendar year is entitled to the end-of-service payment in full, without any deduction for resigning.

Should SV be employed by this company for more than five full years, only his basic income after the first five years is payable at the higher rate
Keren Bobker,
senior partner at Holborn Assets

The entitlement is stated in Article 51 of the law: “2. The full-time foreign worker, who completed a year or more in continuous service, shall be entitled to end-of-service benefits at the end of his service, calculated according to the basic wage as per the following: a. A wage of (21) twenty-one days for each year of the first five years of service; b. A wage of (30) thirty days for each year exceeding such period. 3. The foreign worker shall be entitled to a benefit for parts of the year in proportion to the period spent at work, provided that he completed one year of continuous service.”

Should SV be employed by this company for more than five full years, only his basic income after the first five years is payable at the higher rate.

I have problem with my company, which terminated me by saying “probation failed”. I want to know what my rights are and if there is anything I can do about it. JW, Sharjah

A probation period is essentially a legal trial period and it allows either the employer or the employee to cancel the agreement without serious consequences. If the employer does not wish to retain an individual, they can terminate their employment without giving a reason.

Article 9.4 of the labour law states: “The employer may terminate the service of the worker during this period after notifying the latter of the same in writing fourteen (14) days at least before the date specified for the termination of service.”

The change in the new labour law means that the employer must now give notice of termination to the employee during the probation period, which was not the case previously. The employee must be paid in full for the time worked and during the 14-day notice period as well.

If an employer fails to give notice, “it shall pay to the other party compensation equal to the worker’s wages for the notice period or the remaining period of the notice period”, Article 9.5 of the labour law says.

Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with more than 25 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

if you go

The flights
Emirates flies to Delhi with fares starting from around Dh760 return, while Etihad fares cost about Dh783 return. From Delhi, there are connecting flights to Lucknow. 
Where to stay
It is advisable to stay in Lucknow and make a day trip to Kannauj. A stay at the Lebua Lucknow hotel, a traditional Lucknowi mansion, is recommended. Prices start from Dh300 per night (excluding taxes). 

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part one: how cars came to the UAE

 

Know your camel milk:
Flavour: Similar to goat’s milk, although less pungent. Vaguely sweet with a subtle, salty aftertaste.
Texture: Smooth and creamy, with a slightly thinner consistency than cow’s milk.
Use it: In your morning coffee, to add flavour to homemade ice cream and milk-heavy desserts, smoothies, spiced camel-milk hot chocolate.
Goes well with: chocolate and caramel, saffron, cardamom and cloves. Also works well with honey and dates.

Get inspired

Here are a couple of Valentine’s Day food products that may or may not go the distance (but have got the internet talking anyway).

Sourdough sentiments: Marks & Spencer in the United Kingdom has introduced a slow-baked sourdough loaf dusted with flour to spell out I (heart) you, at £2 (Dh9.5). While it’s not available in the UAE, there’s nothing to stop you taking the idea and creating your own message of love, stencilled on breakfast-inbed toast.  

Crisps playing cupid: Crisp company Tyrells has added a spicy addition to its range for Valentine’s Day. The brand describes the new honey and chilli flavour on Twitter as: “A tenderly bracing duo of the tantalising tingle of chilli with sweet and sticky honey. A helping hand to get your heart racing.” Again, not on sale here, but if you’re tempted you could certainly fashion your own flavour mix (spicy Cheetos and caramel popcorn, anyone?). 

The specs

Engine: 2.3-litre, turbo four-cylinder

Transmission: 10-speed auto

Power: 300hp

Torque: 420Nm

Price: Dh189,900

On sale: now

Results

1. New Zealand Daniel Meech – Fine (name of horse), Richard Gardner – Calisto, Bruce Goodin - Backatorps Danny V, Samantha McIntosh – Check In. Team total First round: 200.22; Second round: 201.75 – Penalties 12 (jump-off 40.16 seconds) Prize €64,000

2. Ireland Cameron Hanley – Aiyetoro, David Simpson – Keoki, Paul Kennedy – Cartown Danger Mouse, Shane Breen – Laith. Team total 200.25/202.84 – P 12 (jump-off 51.79 – P17) Prize €40,000

3. Italy Luca Maria Moneta – Connery, Luca Coata – Crandessa, Simone Coata – Dardonge, Natale Chiaudani – Almero. Team total 130.82/198.-4 – P20. Prize €32,000

Updated: June 23, 2023, 2:51 PM`