I have some questions regarding my employment. Are employers allowed to impose a one-year probation on employees without any benefits such as sick leave, bonuses or annual leave? And are employers allowed to deduct the total amount lost from a sale (for someone working in sales) from a salary while the employee is under the one-year probation? Finally, are employers entitled to not give commissions and bonuses to employees under one-year probation? My contract is limited and under an LLC. They also do not pay overtime. LN, Dubai
UAE Labour Law states that the maximum allowable period of probation is six months and anyone employed for longer becomes a permanent employee. If a sale is not made by an employee in a sales role it is highly unreasonable for an employer to deduct monies lost and in fact I believe it to be illegal. There are strict reasons why employees have income deducted and this is not one of them. If a contract states that commission and bonuses are not payable in the first year then it is enforceable if agreed by both parties at the outset, although again I consider it unreasonable. The employer does not have an option to refuse to pay overtime as the conditions where it must be paid are clearly set out in UAE Labour Law. Article 67 states, “If circumstances of work necessitate that an employee works more than the normal working hours, the extra time shall be considered overtime, for which the employee shall receive a remuneration equal to that corresponding to his normal working hours plus an extra of at least 25 per cent of such remuneration.” Additional hours should be no more than two a day and overtime is not payable to staff in senior managerial or supervisory positions.
Keren Bobker is an independent financial adviser with Holborn Assets in Dubai, with over 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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