Question: My wife’s employment contract states that she is entitled to a housing allowance. Now, her company is taking 50 per cent away from her housing allowance as I am working as well. However, we don't work for the same company. Can a company in the UAE do this? FG, Dubai
Answer: Over the years, I have come across several situations where an employer has a policy of not paying a housing allowance if the employee’s spouse receives one, or of paying a lower amount.
It’s a very old-fashioned policy but whether it can be enforced depends on the terms of the contract of employment and what was signed by both parties.
A housing allowance forms part of a salary package and an employer cannot just reduce a salary by more than 10 per cent without the details being lodged with the Ministry of Human Resources and Emiratisation (MoHRE) and that also incurs charges. Most importantly, it requires the specific agreement of the employee if any changes are made.
Indeed, any change of contract and employment terms requires agreement by the employee. No employer can arbitrarily make any changes.
The possible exception in this scenario is if a contract has a clause that states there are situations where a change will take place. The contract would need to state that the housing benefit is reduced if a spouse also receives this. However, this clause would need to be agreed upon by an employee, preferably at the outset, and not forced.
The employer cannot just change the terms of employment. If any employer makes changes that are not in a signed contract, the employee can register a case against them, and should initially seek advice from the MoHRE.
Q: I manage a company outside of Riyadh, Saudi Arabia. As my business is expanding, I need some of my staff to work additional hours, over and above their standard working week. I want to be fair to people as they are a good bunch but what are the rules for extra hours and pay? VG, Riyadh, Saudi Arabia
A: Employment in Saudi Arabia is mainly governed by Royal Decree No. M/51 dated 23/08/1426H (corresponding to September 26, 2005), generally just referred to as “Labour Law”. It has been updated with several additional Royal Decrees in 2013, 2015 and 2019, plus a few updates earlier this year. The employment of expatriates is overseen by the Ministry of Human Resources and Social Development.
As would be expected, the Labour Law sets out specific obligations in respect of topics such as working hours, annual leave and much more.
The standard maximum working week is 48 hours, with a maximum of eight actual working hours per day. No one should work for more than five hours without a break, as per Article 101 of the Labour Law.
There is no standard obligation for any employee to work additional hours, but they can be asked to do so in limited circumstances. This includes when work is required “to meet unusual work pressure” as stated in Article 106.
The law goes on to state “… actual working hours shall not exceed 10 hours a day or 60 hours a week”.
Overtime pay is required, at 150 per cent of the equivalent normal hourly wage. Article 107 states: “The employer shall pay the worker for overtime working hours an additional amount equal to the hourly wage plus 50 per cent of his basic wage.”
Q: Our helper, who has been with us for a long time, has a 16-year-old daughter. The girl would like to move from Sri Lanka to Abu Dhabi and take on a housekeeper role.
We have space to for her to live with us so it would be a live-out arrangement if she was working for someone else.
But I am unsure about her age. Is a 16-year-old legally allowed to work as house help in the UAE? DF, Abu Dhabi
A: The MoHRE oversees the vast majority of employers in the UAE, and that now includes domestic staff such as maids, cleaners, nannies and drivers. The relevant legislation is Federal Decree Law No. 9 of 2022, Concerning Domestic Workers.
Section 3 of Article 4 states: “Recruiting or hiring a domestic worker under the age of 18 is prohibited.”
There is no leeway on the age limit and this applies whether someone is employed through an agency or directly.
This young woman will need to wait another two years before she can take on such a role in the UAE.
While the main Labour law, Federal Law 33 of 2021, permits some part-time work from age 15, with a great many restrictions for the protection of juveniles, this is not the same for domestic workers.
Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with more than 30 years' experience. Contact her at keren@holbornassets.comor at www.financialuae.com
The advice provided in our columns does not constitute legal advice and is provided for information only
