Can employer reduce salary in UAE?
It is not uncommon for employers to change the employment contract, including reducing the employee’s pay.
Based on the UAE Labour Law, this article discusses whether an employer can change an employee’s contract and reduce their pay and lists the related legal services for 2024.
Contact Al Mulla Labor Lawyer in Dubai. Click the WhatsApp icon below or go to the Contact Us page. Locations: Dubai, Abu Dhabi and Ras Al Khaimah.
Table of Contents
Can employer reduce salary in UAE?
If an employer wants to change an employee’s contract and reduce their pay, they must obtain the employee’s written consent.
So, can my employer change my contract without my consent?
The new terms and conditions must be agreed to by the employee before the employer can implement them. If the employee disagrees with the changes, the employer cannot implement them.
According to the UAE Labour Law, an employer cannot directly or indirectly deduct hiring costs from an employee’s salary.
This means that the employer is responsible for bearing the costs of visa issuance and renewal, medical care, and insurance.
However, the law permits employers to deduct from workers’ salaries in specific cases and under certain regulations, and the deduction percentage may not exceed 50 percent of the pay.
The law allows for deductions in eight specific cases, including redeeming loans granted to the worker within the maximum 50 percent limit of the monthly deduction percentage from the worker’s wage.
This also includes redeeming amounts paid to the worker and entitlements deducting the worker’s contributions to bonuses, retirement pensions, insurance, and others.
Legal services related to modifying contracts and reducing salary
Here is a list of Al Mulla Lawyers’ legal services related to changing contracts and reducing pay in the UAE:
- Detailed review of employment contracts to ensure compliance with UAE Labour Law.
- Legal advice on contract terms and conditions.
- Negotiation assistance for contract modifications.
- Legal advice on salary reductions and entitlements.
- Assistance with disputes over unpaid wages or benefits.
- Guidance on legal rights related to salary reductions and increments.
- Representation in labour disputes and litigation regarding contract changes.
- Mediation and arbitration services to resolve conflicts over contract modifications and pay reductions.
- Legal guidance on lawful termination procedures if an agreement on contract changes cannot be reached.
- Assistance with redundancy processes and entitlements related to contract changes.
- General legal advice on all aspects of UAE Labour Law regarding contract changes and salary reductions.
- Personalized consultation services for both employers and employees dealing with contract modifications.
FAQs about changing contracts and reducing pay
Conclusion.
The UAE Labour Law prohibits employers from directly or indirectly deducting hiring costs from an employee’s salary. Employers can change an employee’s contract, but only with the employee’s written consent.
Ensuring that the employment contract complies with the UAE Labour Law is essential. Al Mulla Labour Lawyers & Legal Consultants are the best option for legal assistance with labour contract cases in the UAE.
Contact Al Mulla Lawyers today! Click the Whatsapp icon below or visit our Contact Us page.
Find us at these locations:
– Dubai: Deira, Port Saeed, Street 8, City Avenue Building, Office 705-708.
– Abu Dhabi: Corniche Street, Golden Tower, Office 22.
– Ras Al Khaimah: Al Nakheel, Al Maamoura Building (Emirates NBD Bank Building), Fourth Floor.
We hope we have answered your question: Can employer reduce salary in UAE? We recommend you read about the Best Employment Contract Lawyer and the Best Employment contract review service from Labour Lawyer UAE.
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A legal consultant specializing in UAE labor law. He regularly publishes articles on the website and writes on various areas of UAE law, with a specific focus on labor law.