‘Can my employer halve my salary to cover accidental damage?’

I work in an engineering company and made a silly mistake that caused some damage to a machine. It was an accident and I apologised, but my boss says they will charge me for repairs and cut 50 per cent of my salary for three months to pay for it.

I cannot manage to live on this low amount as I have a family to support, but the company won’t accept my suggestion to deduct a lower amount for a longer time.

Is there anything I can do as I am worried that I will not be able to pay my car loan and my regular bills? AP, Sharjah

No employer is permitted to simply halve an employee’s salary payments. This company is acting illegally and not in accordance with the new UAE labour law.

Article 25 of the law, titled Cases of Deduction or Withhold from the Worker’s Wage, clarifies the few situations where deductions can be made legally and by what amount.

“No amount may be deducted or withheld from the worker’s wage except in the following cases: amounts deducted from the worker due to violations he commits, according to the regulation of penalties in force at the establishment and approved by the Ministry, provided that they shall not exceed five per cent of the wage,” the law says.

“Amounts necessary to rectify the damage caused by the worker, as a result of his mistake or violation of the employer’s instructions, which led to the destruction, demolition or loss of tools, machines, products or materials owned by the employer, provided that the deducted amounts do not exceed the wage of five days per month. It is not permissible to deduct an amount greater than that except with the approval of the competent court.”

We could assume that the employer is unaware of the law, which would not be uncommon, so the first step is to point out the law and what is permitted.

If they insist on making illegal deductions, AP should register a case against the employer with the Ministry of Human Resources and Emiratisation. This can be done by telephone (600 590000) or through its website and app.

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Watch: New UAE labour law comes into effect

I am in Dubai on a three-month visit visa from India. I have an international driving licence. Am I allowed to drive a private car? SA, Dubai

The Roads and Transport Authority (RTA) has given guidance on this matter. It says: “If you are on a visit to the UAE and holding a valid international driving licence, accordingly you can rent a car or drive a car registered to your name or one of your first degree relatives.”

The generally used term is an International Driving Permit.

This means that a visitor to the UAE can only drive a vehicle that is owned by a first degree relative, which means a parent, a child, a brother or sister.

If the private car referred to is not owned by one of these relatives, SA is not permitted to drive it legally and can only drive a hire car.

To ensure that someone is properly insured, it is wise for anyone who wants to permit a suitable close relative to drive their vehicle to receive confirmation from their insurance company. This should be confirmed in writing, although an email should be fine.

I have been living in Muscat, Oman, for a few years and will be transferring to my company's Dubai office. We have a family dog and I would like to know how I can bring her to the UAE.

Can I drive her across the border or are there expensive complications to be dealt with? QM, Muscat

This is not a subject I am familiar with, so I sought advice from Kate Lindley, owner of Paw Pals Dubai, a company specialising in pet sitting and relocations.

“It is possible to drive across the border with your dog — it needs to be microchipped, fully vaccinated and have a rabies antibody test done as Oman is listed as a high-risk country,” Ms Lindley said.

“You will need to apply for an import permit, which can be obtained online. You need to be a UAE resident to import pets. Alternatively, a pet relocation company can issue the import permit on your behalf. The cost of the import permit is Dh200 per dog or cat, plus a Dh500 release fee.”

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

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Labour law changes — in pictures

Under the UAE's amended laws, many private sector workers on permanent contracts will find themselves moved to rolling fixed-term contracts. Stephen Lock / The National

Lawyer Mohamed Rouchdi said job-sharing could benefit mothers returning to the workplace and students looking to make some cash. Ruel Pableo for The National

A person who loses or leaves their job will now have 180 days, instead of 30 days, to find new work. The move will reduce the pressure to leave the country in the event of a job loss. Nicole Hill / The National

The Gate Building at Dubai International Financial Centre. Employees in the free zone and at Abu Dhabi Global Markets are not affected by the changes. Antonie Robertson / The National

Government sector workers are also not affected by the changes. Ali Haider / EPA

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”