Question: I have a business with 20 employees and, while everyone has a proper employment contract that is lodged with the Ministry of Human Resources and Emiratisation, we have separate agreements about commissions and other benefits.
These vary but some have been in place for a long time and include benefits we no longer want to provide as they are too expensive. As these letters are not part of the official contracts, can we give notice to employees that they will no longer apply? TB, Dubai
Answer: Sarah Brooks, managing director of Fikrah HR, advises small businesses on best HR practices. She says: “Side agreements can still be treated as contractual if they are in writing and have been consistently applied over time, even if they are not in the [ministry] contract, as long as they do not conflict with UAE labour law.
“This means unilaterally removing long‑standing benefits, especially financial ones, can be seen as reducing contractual entitlements and may carry legal and employee relations risks. Any enhancements beyond the minimum remain more within the company’s discretion at renewal, but long‑standing written promises or established practice can still become binding.”
Ms Brooks adds that "practically, any employer should ensure that all benefits still meet or exceed the legal minimum as per UAE law. Any employer should ensure there is a clear and transparent communication plan with their team, so they are advised and aligned with the change in company policy well in advance".
I would suggest that TB take legal advice regarding the wording in such a letter of intent, as the company could leave itself open to legal action if it simply withdraws benefits that could be seen as contractual. Any changes should be agreed to and documented properly.
When a company has a financial problem, it is likely to get a better reaction from employees if it is clear and honest regarding the reason for any changes, especially where they may disadvantage staff.
It should be generally noted that additional benefits outside the contract can be formally binding. This is even more likely to be the case this year, with the UAE’s upgraded Civil Transactions Law coming into effect. This law brings clarity to various legal situations and additional agreements such as a letter of intent now have more weight in law.
Q: I am moving to Saudi Arabia soon to start a job but have a question about my hobby. I take photos and videos using a drone, but can I do this in Saudi Arabia as well? I am worried about local laws and offending people. GL, UK
A: It is good that you have asked as local rules are different to the UK. Personal drone use is permitted in Saudi Arabia but there are limitations. To start with, a licence must be obtained from the General Authority of Civil Aviation through its website and the drone registered with the agency. Residency must be in place first as the Iqama number is mandatory. A permit for recreational use is about 250 Saudi riyals ($66.70).
There are additional requirements and fees for commercial use. In brief, it is not permitted to fly a drone near airports, military installations, government buildings, or near large crowds. The height of a drone's flight should be no more than 150 metres and within line of sight. People should not be filmed, or even flown over, without their permission and local sensitivities must be kept in mind at all times.
Q: I found a wallet when I was walking outdoors and tried to find the owner by posting on Facebook groups. There was little money in it but an Emirates ID card. My friend said I could get in trouble for holding it even though I was trying to do good. Is that true? AK, Dubai
A: It has always been the case that lost items should be passed to the police. People should not hold on to items that they find.
According to Law No (17) of 2025 on the handling of lost and abandoned property in Dubai, anyone who finds lost property, except a public employee performing official duties, must register it in Dubai Police’s electronic system within 24 hours and hand it over within 48 hours. That person is not allowed to use, keep or claim the property as their own, and failing to comply may result in criminal penalties.
A fine can be levied for failing to pass on an item, starting at Dh500 ($136) – rising for higher value items. The UAE authorities can easily trace any resident using the Emirates ID card.
Contact Keren Bobker at keren@holbornassets.com or at www.financialuae.com
The advice provided in our columns does not constitute legal advice and is provided for information only
