Question 1

What is an employment contract?

Accepted Answer

An employment contract is an agreement between an employer and an employee whereby the employee commits to work for the employer and agrees to work under the employer’s management and supervision, for which the employee receives remuneration from the employer.

Question 2

What requirements must be covered in an employment contract?

Accepted Answer

The employment contract shall be in accordance with the work model agreed upon with the employee (e.g. full-time work, part-time work, temporary work or flexible work). Besides, company providing an internal employment contract, company also provides employment contract templates through the MOL portal for the different models of work, which cover all of the provisions required under the UAE Labour Law. The employment contract should be written with two copies signed, one for employer and one for employee.

Question 3

Is an oral employment contract recognized in MOHRE?

Accepted Answer

No, it requires parties to enter into a written contract of employment setting out all of the minimum terms required by the UAE Labour Law.

Question 4

Can the limited term contract be terminated before the expiry of the term?

Accepted Answer

Yes, limited term employment contracts can be terminated on notice during the course of the employment contract term provided: 
· There is a legitimate reason for terminating the employment contract. Legitimate reason is not defined in the UAE Labour Law but is likely to include poor performance or misconduct (and some limited redundancy reasons such as bankruptcy or insolvency); and 
· The period of written notice of termination under the employment contract is provided by the party wishing to terminate the contract (which is a minimum of thirty (30) days and a maximum of ninety (90) days). 
The limited term employment contract can also be terminated before the expiry of the term: 
· During the probationary period; 
· If the parties both mutually agree; 
· If the employee’s work permit cannot be renewed for any reason beyond the employer’s control; or 
· If the employee is terminated for gross misconduct.

Question 5

What happens to a limited contract if it is not explicitly renewed?

Accepted Answer

If a limited contract is not explicitly renewed or extended by mutual consent and the employee remains in service, then the original employment contract will be deemed as implicitly extended on the same terms and conditions as the original contract unchanged.

Question 6

What is the maximum probation period?

Accepted Answer

The employee may be required to complete a probation period not exceeding six (6) months.

Question 7

Can an employer terminate an employment contract during the probation period?

Accepted Answer

Yes, the employer may terminate the services of the employee by serving the employee with at least fourteen (14) days written notice of termination, prior to the expiry of the probation period. No end of service benefit is payable if the termination occurs during the probation period.

Question 8

Can an employee terminate an employment contract during the probation period?

Accepted Answer

Yes, the employee can terminate their employment contract during their probation period on fourteen (14) days written notice to the employer. However:
· Where an employee wishes to leave to join another employer within the UAE, the employee must serve at least thirty (30) days’ notice. In such case, the new employer shall undertake to compensate the current employer for the costs of recruiting the employee (unless otherwise agreed);
· Where an expatriate employee intends to leave the UAE on the termination of their employment, they must still serve at least fourteen (14) days’ notice on the employer. However, if the employee returns to work in the UAE within three (3) months from their date of departure, then their new employer shall undertake to compensate the current employer for the costs of recruiting the employee (unless otherwise agreed).

Question 9

Is the probation period included in the employee’s total period of service?

Accepted Answer

Yes. If the employee passes the probationary period, and remains in service, the probation period is included in the employee’s total period of service.

Question 10

Can the probation period be repeated?

Accepted Answer

No. The probation period may not be repeated (although the initial probation period may be extended so long as it is clear that it is the same probationary period and subject to the total period not exceeding six (6) months).

Question 11

Can a salary be paid in a foreign currency?

Accepted Answer

Yes, provided this is agreed by the parties in the employment contract.

Question 12

Is it mandatory to provide a salary slip to employees?

Accepted Answer

No, however, whilst it is not mandatory, it is recommended that employers provide salary slips to their employees as a record of the components of the remuneration paid each month. This can be done via an electronic pay slip/system.

Question 13

Is there a minimum wage introduced?

Accepted Answer

No minimum wage is currently fixed for employees under the UAE Labour Law. However:
· Article 27 of the UAE Labour Law states that the Cabinet, based on a proposal made by the Minister in coordination with the competent authorities may issue a decision identifying the minimum wage of employees or any category of employee; and
· Some countries have set minimum wages for their nationals who work in the UAE including by way of agreement between the governments or linked to immigration clearance.

Question 14

What are the maximum number of working hours per day?

Accepted Answer

Eight (8) hours per day or forty-eight (48) hours per week (assuming a six (6) day working week) for an adult. Where an employer operates a five (5) day working week, the total working hours may not exceed forty (40) hours per week (i.e. eight (8) hours per day).

Article 17 of the UAE Labour Law states that the Cabinet may, based on a proposal made by the Minister in coordination with the relevant authorities, increase or decrease the daily working hours for certain sectors or certain categories of employee.

The commute to work is not included in working hours.

Question 15

Is the break hour included as part of working hours?

Accepted Answer

Employees must not work over five (5) hours consecutively without one or more breaks the total duration of which may not be less than one (1) hour. Such break(s) shall not be included in calculating an employee’s working hours.

Question 16

Can employees work in excess of their normal working hours? If so, what is the maximum number of overtime hours per day?

Accepted Answer

Yes, however overtime may not exceed two (2) hours per day and total working hours may not exceed one hundred and forty four (144) hours every three (3) weeks.

Question 17

How is remuneration for overtime during the working week calculated?

Accepted Answer

If circumstances require that an employee works more than the normal working hours, the overtime is paid at normal remuneration plus an increase of at least 25% of the remuneration.

If the overtime is between 10.00 pm and 4.00 am, overtime is paid at normal remuneration plus an increase of at least 50% of the remuneration.

Question 18

Is overtime pay applicable to managers and supervisors?

Accepted Answer

The UAE Labour Law states that the Implementing Regulations shall specify the categories of employees which may be excluded from the provisions related to working hours.

Question 19

Can an employer ask an employee to work on Sundays?

Accepted Answer

The UAE Labour Law states that an employee shall be entitled to one weekly rest day to be agreed with the employer. The weekly rest day does not have to be on a Sunday (subject to any contrary agreement with the employee contained in their employment contract).

Question 20

Can an employer ask their employees to work during Public Holidays?

Accepted Answer

If work necessitates that an employee works on any public holiday, then the employee shall be compensated:

· With a day off in lieu for each day worked which is a public holiday; or

· The employee must be paid their normal remuneration plus an increase of at least 50% of the remuneration for the days worked.

Question 21

Are employees entitled to leave on UAE public holidays?

Accepted Answer

Under the UAE Labour Law, employees are entitled to official leave with full pay on public holidays, which are announced by virtue of a Cabinet Resolution.

Question 22

Is an employee entitled to annual leave if their period of service is less than six (6) months?

Accepted Answer

No. However, an employer can elect to give the employee annual leave against the employee’s annual leave balance during the employee’s probation period should they be agreeable to doing so.

Question 23

Is an employee entitled to annual leave if their period of service is less than one (1) year?

Accepted Answer

Yes, holiday accrues at the rate of two (2) days per month from six (6) to twelve (12) months’ service. Days are considered to be calendar days.

Question 24

What is the annual leave entitlement for an employee who has completed one year of continuous service?

Accepted Answer

Thirty (30) days per annum for any employee whose period of service is one (1) year or more. Days are considered to be calendar days.

Question 25

Can an employer fix annual leave dates?

Accepted Answer

Yes, the employer has the discretion to determine the date for commencement of annual leave based on work requirements, subject to serving the employee with thirty (30) days’ notice of the leave date(s).

Question 26

How is annual leave salary calculated?

Accepted Answer

During annual leave, an employee is entitled to receive their basic wage plus any cash allowances determined under the employment contract, for instance, a housing allowance and transport allowance (if any).

If circumstances necessitate that the employee works during part or all of their annual leave, then either:

· The period of leave can be carried forward to the next year; or

· The employer can pay the employee for leave days worked in accordance with the Implementing Regulations.

If the employee is paid in lieu of their annual leave on termination, this shall be paid at the employee’s basic wage.

Question 27

Are employees entitled to an annual airline ticket under UAE Labour Law?

Accepted Answer

No. Any entitlement to an annual airline ticket is entirely based on company policy.

Question 28

What is the annual sick leave entitlement?

Accepted Answer

Up to ninety (90) calendar days per annum.

Question 29

Is the employee entitled to paid sick leave during the probation period?

Accepted Answer

No.

Question 30

When does the employee become entitled to paid sick leave?

Accepted Answer

After completing the probation period an employee becomes entitled to sick leave of not more than ninety (90) calendar days per annum.

Question 31

What are an employee’s notification obligations for sick leave and what are the employer’s obligations?

Accepted Answer

If an employee takes sick leave, the employee must report their illness to their employer within a maximum of three (3) days and provide the employer with a medical certificate from a UAE licensed medical/healthcare establishment.

Question 32

What is the annual sick leave pay entitlement?

Accepted Answer

Once eligible, the entitlement is:

a. The first 15 calendar days, with full pay;

b. The next 30 calendar days, with half pay; and

c. Any subsequent period, without pay.

If illness is due to the employee’s misconduct or ill behavior, the employee shall not be entitled to any remuneration during any related sick leave.

Question 33

Can the employer terminate an employee who cannot return to work due to illness?

Accepted Answer

Yes, the employer may terminate the services of an employee, in accordance with the notice provisions, if the employee is unable to resume their duties following ninety (90) calendar days’ sick leave in any year of service. The employer must allow the employee to take the full sick leave entitlement before terminating. On such termination, the employee remains entitled to end of service benefit. However, unpaid periods of service are not included for the purposes of length of service for calculating end of service benefits. As such, if the employee has taken ninety (90) days’ sick leave (the first forty five (45) of which are paid and the second forty five (45) days of which are unpaid) only the first forty five (45) days must be included in the end of service benefits calculation.

Question 34

When does the notice period commence if either party terminates the contract during the employee’s sick leave?

Accepted Answer

If either party wishes to terminate the contract during the employee’s sick leave, the notice period in the employment contract will only commence on the day following the date on which the employee returns from leave, unless the parties agree otherwise.

Question 35

Are employees entitled to any other types of Leave?

Accepted Answer

Yes. The UAE Labour Law provides for the following types of leave:

· Bereavement Leave: Five (5) days paid leave for the death of a spouse and three (3) days paid leave for the death of a parent, child, sibling, grandchild, or grandparent;

· Study Leave: For affiliate students or full-time students at an accredited UAE educational institution of ten (10) working days per year for the purpose of taking exams, subject to the employee having completed at least two (2) years’ service with the employer;

· Sabbatical Leave: To perform National or Reserve Service for Emirati employees;

· Maternity and Parental Leave: See Maternity and Parental Leave section of the Q&A below.

Question 36

What are my health and safety obligations as an employer?

Accepted Answer

There are a number of obligations on employers with respect to health and safety which include:

· Providing necessary safety means to protect employees from the risks of occupational injury and disease, by providing guidance and awareness and proper training;

· Performing regular assessments to ensure all parties are in compliance with the requirements of safety and security on both occupational and health levels;

· Providing a safe and suitable working environment;

· Adhering to the provisions of Federal Law no. 13 of 2020 on Public Health and all resolutions issued for the implementation thereof.

Question 37

When is an employment contract considered terminated?

Accepted Answer

An employment contract is terminated in any of the following cases:

· Mutual consent by both parties to terminate the contract, provided that the employee’s consent is in writing;

· On expiry of the specified period in the limited term contract, unless the contract is extended or renewed in accordance with the UAE Labour Law;

· At the option of one party’s request, subject to the provisions of the UAE Labour Law and provided that the correct notice is given;

· If the employee dies or is completely incapacitated from working as evidenced by a medical certificate;

· If an employee is sentenced to imprisonment for a term of not less than three (3) months;

· In the event of the employer’s bankruptcy or insolvency or other economic or exceptional reasons that prevent the continuity of a project (subject to applicable Regulations) or the final closure of the establishment;

· If an employee’s work permit is not capable of being renewed for reasons beyond the employer’s control.

Question 38

Can an employer terminate an employee during their leave?

Accepted Answer

With the exception of cases where the employer has the right to dismiss the employee without notice, the employer cannot dismiss an employee during the employee’s leave. The employee or employer can, however, serve notice during the leave period, but the notice period will only commence on the day following the date on which the employee returns from leave unless the parties agree otherwise.

Question 39

When can an employer terminate an employee without notice?

Accepted Answer

The UAE Labour Law states that an employer may dismiss the employee without notice, but after conducting a written investigation, in the following cases:

· If the employee adopts a false identity or submits forged documents or certificates;

· If the employee commits an error causing gross material loss to the employer or purposely damages the employer’s property and admits to the same;

· If the employee violates safety instructions at the place of business, provided that such instructions are displayed in writing at conspicuous places and the employee has been made aware of the same;

· If the employee fails to perform their main duties under the contract of employment and does not remedy them despite formal investigation and receiving two warnings of dismissal;

· If an employee divulges any trade secrets or intellectual property of the establishment where employed and such disclosure results in loss to the employer, loss of opportunity, or the employee achieved a personal benefit;

· If the employee is found drunk or under the influence of drugs or a psychotropic substance during working hours or commits any act of moral turpitude at the workplace during working hours;

· The employee commits a verbal, physical, or any other form of assault on the employer, the manager, or any colleague;

· If the employee is absent without valid cause, for more than twenty (20) intermittent days or for more than seven (7) successive days, during any year;

· If the employee misuses their position for private gain; or

· If the employee joins another establishment without complying with the controls and procedures prescribed in this respect.

There is a minimum statutory disciplinary process which employers should follow prior to termination, where appropriate. Please note that termination under Article 44 of the UAE Labour Law is difficult in practice, as it is a very high hurdle to satisfy and may involve referrals to the police and/or other third parties for independent confirmation of the allegations prior to termination. We therefore recommend that prior to terminating under Article 44, an employer seeks independent legal advice.

Question 40

Can an employer terminate the employee because that employee has a dispute against the employer?

Accepted Answer

If an employer terminates an employee’s employment because the employee has lodged a complaint or claim against the employer, the termination shall be deemed unlawful. The same applies where the reason for the termination of the employee’s employment has nothing to do with the employee’s work. In these circumstances, the employee may raise a claim and, if successful, may be entitled to compensation up to a maximum of three (3) months’ remuneration.

Question 41

When can an employee resign without notice?

Accepted Answer

An employee may resign without notice in the following cases:

· If the employer breaches their obligations towards the employee as provided for in the employment contract or under UAE Labour Law or the implementing resolutions and despite receiving a notice to that effect by the Ministry of Human Resources and Emiratisation, the employer fails to address the breach (provided the employee advises the MOL or respective freezone authorities immediately within 48 hours);

· If it is proven that the employer or its legal representative committed an act of violence or harassment against the employee during work provided the employee advises the authorities of the incident within 48 hours of becoming aware to MOHRE or the respective freezone as applicable;

· If there is a serious risk in the workplace to the employee’s safety or health, provided that the employer was made aware of its existence but failed to take measures to remove it; or

· The employer assigns the employee to perform work that is substantially different to the work agreed under the employment contract without the employee’s written consent (except for exigencies set out in Article 12 of the UAE Labour Law).

Question 42

What is included in the employee’s final settlement if the employer or employee serves notice to terminate a contract before its expiry?

Accepted Answer

If notice is served to terminate the limited contract by the employer or employee for a legitimate reason prior to expiry date (except if the termination is for a reason under Article 44 of the UAE Labour Law), (in addition to any contractually agreed payments and/or benefits) the employee will be eligible for:

- Remuneration until the commencement of the notice period;
- The employee’s full wage for the notice period;
- Encashment of accrued but unused annual leave, if the employee has worked for more than six (6) months;
- End of service benefit, if the employee has worked for one or more years; and
- Potentially, a one-way repatriation ticket to the employee’s country of origin.

Question 43

What components are included in the employee’s final settlement, if the employee resigns without serving notice on the employer before the expiry of the limited term?

Accepted Answer

If the employee resigns from the limited term contract before the expiry of its term, but does not give the required notice, the following payments will (in addition to any contractually agreed payments and/or benefits) form part of an employee’s final settlement:

- Remuneration until the employee’s last day of employment;
- Encashment of accrued but unused annual leave, up until the employee’s resignation date, if the employee has worked for more than six (6) months;
- End of service benefit, if the employee has worked for more than one (1) year; and
- Potentially, a one-way repatriation ticket to the employee’s country of origin.

Except where the employee resigns for reasons listed under Article 45 of the UAE Labour Law, the employee will owe the employer, as compensation in lieu of notice, an amount equal to the amount of the employee’s salary for the notice period (or remaining part thereof).

Question 44

What components are included in the employee’s final settlement if the employer terminates the contract for a legitimate reason but without serving the required notice on the employee before the expiry of the employee’s limited term contract?

Accepted Answer

If the employer terminates the employee’s limited term contract before the expiry of the term for a legitimate reason, but does not give the required notice, the following final settlement components will be payable to the employee (in addition to any contractually agreed payments and/or benefits):

- Remuneration until the employee’s last day of employment;
- Except where the employer terminates for reasons listed under Article 44 of the UAE Labour Law, the employer will owe the employee, as compensation in lieu of notice, an amount equal to the amount of the employee’s salary for the notice period (or remaining part thereof);
- Encashment of accrued but unavailed annual leave up until the employee’s termination date, if the employee has worked for more than six (6) months;
- End of service benefit, if the employee has worked for one or more than one (1) year; and
- Potentially, a one-way repatriation ticket to the employee’s country of origin (see response to FAQ 59 below in relation to repatriation).

Question 45

What components are included in the employee’s final settlement, if the employee is terminated under Article 44 (summary dismissal)?

Accepted Answer

Any employee whose employment is terminated by the employer under Article 44 (summary dismissal) will (in addition to any contractually agreed payments and/or benefits) be eligible for:

- Remuneration until the employee’s last day of employment;
- Encashment of accrued but unavailed annual leave, if the employee has worked for more than six (6) months;
- End of service benefit, if the employee has worked for one or more than one (1) year; and
- Potentially, a one-way repatriation ticket to the employee’s country of origin.

Such an employee is not eligible for payment of early termination compensation.

Question 46

What components are included in the employee’s final settlement, at the expiry of the employee’s limited term contract?

Accepted Answer

Any employee who works their full contract term until expiry of the contract (in addition to any contractually agreed payments and/or benefits) will be eligible for:

- Remuneration until the employee’s last day of employment;
- Encashment of accrued but unavailed annual leave, if the employee has worked for more than six (6) months;
- End of service benefit, if the employee has worked for one or more than one (1) year; and
- Potentially, a one-way repatriation ticket to the employee’s country of origin.

Question 47

Is an employee entitled to a payment in respect of accrued but unused annual leave after contract termination?

Accepted Answer

Yes. The employee is entitled to receive remuneration in respect of annual leave days not used calculated up until their termination date if they are terminated or if they resign, provided the employee has worked for more than six (6) months. The remuneration is calculated on the basis of the remuneration received by the employee at the time such leave became due. Holiday pay on termination should be calculated based on the employee’s basic wage.

Question 48

Can an employee receive any compensation for an unlawful termination?

Accepted Answer

An employee’s termination will be unlawful:· if the termination was as a result of the employee filing a serious complaint against the employer (i.e. victimisation); or if the employee filed a case against the employer which is successfully upheld. Where termination is found to be unlawful in accordance with these grounds, the Labour Courts may oblige an employer to pay compensation of up to three (3) month’s total remuneration (basic salary and allowances), in addition to all other contractual and statutory entitlements.

Question 49

What is “remuneration” for the purposes of End of Service Benefit (EOSB) calculation?

Accepted Answer

The EOSB shall be computed on the basis of the employee’s basic wage (and in some circumstances, commission). There have been instances whereby the courts have taken into consideration bonuses in certain specific cases when assessing EOSB entitlement. This will depend on how the bonus scheme is structured. The EOSB shall not include anything given to the employee in kind or by way of housing allowance, transport allowance, travel allowance, overtime allowance, representation allowance, cashier’s allowance, children’s education allowance, recreation and social services allowance or any other allowances.

When assessing EOSB entitlement it should be considered whether specialist and independent legal advice is required.

Question 50

How is EOSB calculated?

Accepted Answer

This will depend on whether the employee is full time or employed under another work model.

Question 51

How soon following termination do EOSB and the other payments due to the employee need to be paid?

Accepted Answer

All payments due to the employee on termination of employment should be paid to the employee within fourteen (14) days of the termination/expiration of the contract.

Question 52

What are the pension and EOSB entitlements for GCC nationals and voluntary contributors?

Accepted Answer

The position in relation to EOSB for GCC nationals is more complicated. As GCC nationals are entitled to receive contributions into the state pension scheme, they have no statutory entitlement to receive EOSB. However, this will depend on the employee’s nationality and, in some cases, salary. Specialist legal advice should be taken on this issue.

For non-GCC nationals, it is potentially possible to make contributions into a pension scheme on an employee’s behalf in lieu of EOSB entitlement. However, in order for such contributions to validly replace an employee’s entitlement to EOSB, certain requirements must be met. Specialist legal advice should be taken on this issue.

Question 53

What notice period is required to terminate a limited contract?

Accepted Answer

Both the employer and the employee may terminate the limited contract before the expiry of the contract for a legitimate reason by giving not less than thirty (30) calendar days’ written notice (subject to any longer notice period set out in the contract of employment).

A longer notice period will apply if this is included in the employment contract; however, this may not exceed ninety (90) calendar days.

Question 54

Can the parties agree to waive or reduce the notice period?

Accepted Answer

The parties can agree to waive the notice period clause or to reduce the term of the notice period, in which case all the employee’s dues to which they would be entitled during the notice period will be paid in lieu.

Question 55

What are the entitlements of a party if the other party fails to serve notice?

Accepted Answer

If the employer or the employee has failed to serve notice to the other party for termination of the contract or has reduced the notice period, the party obliged to serve the notice shall pay to the other party compensation in lieu of notice of an amount equal to the amount of the employee’s salary for the notice period (or the remaining part thereof).

Question 56

What is the EOSB and annual leave eligibility during the employee’s notice period?

Accepted Answer

The notice period of an employee is considered to be part of the total employment tenure. Hence, the EOSB and the annual leave will continue to accrue during the notice period.

Question 57

Who bears the repatriation costs on termination of employment?

Accepted Answer

Expenses for repatriation of a non-UAE national employee (to their homeland or other agreed place) are covered by the employer regardless of the place of recruitment and whether termination takes place during or after the probation period. The visa status of the employee is also irrelevant for the purposes of whether a repatriation ticket should be provided. However, if the employee takes up employment somewhere else in the UAE, repatriation expenses upon termination of their service shall be paid by the new employer.

If the employer fails to repatriate the employee and has not paid the repatriation expenses, the competent authorities shall do this at the employer’s expense. If the cause for termination of the contract is attributed to the employee, the employee is responsible for repatriation at their own expense if they have the means to pay.

Question 58

What records must be kept by an employer?

Accepted Answer

The employer is required to keep files and records of employees pursuant to the terms and conditions and procedures issued by the Ministry of Human Resources and Emiratisation for not less than two years after the employee’s employment comes to an end.

Question 59

What information should be mentioned in the certificate of termination of service?

Accepted Answer

If requested by the employee, the employer must provide the employee, at the end of their service, an end of service certificate free of charge. The certificate shall include:

- Date of appointment;
- Date of termination;
- Total period of service;
- Job title;
- Nature of work performed;
- Last wage received by the employee plus allowances, if any; and
- The reason for ending the employment contract.

The end of service certificate may not contain any statements that might defame the employee or diminish their chances of finding other job opportunities. Certificates or diplomas, papers, and tools belonging to the employee must be returned to the employee.

Question 60

Is an employment contract affected by changes in the form or legal status of a company?

Accepted Answer

If any change takes place in the form of the establishment or in its legal status, valid contracts at the time of change shall continue to exist between the new employer and the employees of the establishment, and service shall be deemed to be continuous

Question 61

What deductions can be made from an employee’s remuneration?

Accepted Answer

Deductions are not permitted from the employee’s remuneration except in the following cases: · Redemption of loans granted to the employee (such deduction is subject to the maximum rate of monthly deductions from the employee’s remuneration) after obtaining the written approval of the employee, and without any interest;· Redemption of amounts paid to the employee in excess of their entitlement; provided that the deduction does not exceed 20% of the employee’s wage; · Amounts deducted for the purpose of calculating contributions in gratuities, pensions, and securities in accordance with applicable legislations in the UAE; · Contributions of the employee in the Saving Fund of the company, or the loan due to the fund, which are approved by the Ministry of Human Resources and Emiratisation (MOHRE); · Installments of any social project or any other benefits provided by the employer and approved by the MOHRE; on the condition that the employee agrees in writing to contribute in the project; · Amounts deducted from the employee due to violations committed by him/her in accordance with the Penalties Regulation applicable in the establishment and approved by the MOHRE, which shall not exceed 5% five percent of the employee’s remuneration; · Debts which are due in execution of a court judgment, which shall not be more than a quarter of the remuneration due to the employee, except for the adjudged alimony debt where it is permitted to deduct more than a quarter of the remuneration; · The amounts required for repairing damages caused by the employee, due to an error committed by the employee, or to violating the instructions of the employer, which lead to damage, destruction or loss of tools, machines, products, or materials owned by the employer; provided that deduction does not exceed the pay of five (5) days per month. 19 · In the case of multiple reasons for deductions being made, then the maximum deduction permitted is 50% of the remuneration. The employer is also permitted to deduct any amounts due by law or by a court judgment from the employee’s EOSG. The employer is not permitted to reclaim any visa or related expenses from the employee.

Question 62

If an employee damages or destroys equipment or tools, can the employer recover the cost?

Accepted Answer

If an employee has breached instructions of the employer or committed an error, resulting in damage to, or destruction of, or loss of equipment, tools, machines, products or materials owned by the employer, then the employer has the option to recover the cost of repair or replacement from the employee. The amount cannot exceed five (5) days’ remuneration per month. A greater amount may only be deducted in such circumstances based on the approval of a competent court.

Question 63

What should an employer do if the visa expires a short period before the expiry or termination of an employment contract?

Accepted Answer

All employees must hold a valid employment visa until their employment has terminated. It is the obligation of the employer to sponsor the employee for the period of employment.

Question 64

Under what circumstances can an employee be reported as an absconder?

Accepted Answer

As per Article 1 of the Ministerial Decision on the Procedures of Escape Reports (2006), if an employee is believed to be in the UAE and does not report to work for seven (7) days without informing the employer, the employer may report the employee as an absconder.

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