I have been with my employer, a locally based service company, for several years. Earlier this year I changed my working hours so I am now employed on a part-time basis. I also came off their visa and am sponsored by my husband. Soon after this I was presented with a new employment contract and although the pay and hours were as we agreed I was told that I would no longer be provided with medical insurance. When I queried this, as it had not been part of the discussion, I was told it was no longer their responsibility as they were not my sponsor and that my husband had to sort it out. His employer only provides cover for employees and not dependants. This all seems very unfair as I will have to pay for my own insurance. Are they allowed to do this? WP, Dubai
There are two issues here. Firstly, an employer is not permitted to change the terms of a contract of employment without the employee’s permission, so they cannot just present an altered contract without prior agreement. The second point is regarding the responsibility for providing and paying for medical insurance. Under the Dubai Health Authority rules, as part of the Dubai Health Insurance Law, employers are responsible for providing health insurance for their employees. All companies with more than 100 employees should have had compliant cover in place no later than July of this year. Only if a person does not have an employer is the sponsor, usually the spouse or parent, then responsible for providing suitable cover with a deadline of June next year. The law is perfectly clear on this matter, and failure to comply with the rules can result in fines of up to Dh50,000.
Keren Bobker is an independent financial adviser with Holborn Assets in Dubai, with over 20 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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