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Is it Legal to Deduct Pay from a Salaried Employee in UAE Dubai?

is it legal to deduct pay from a salaried employee

Is it legal to deduct pay from a salaried employee?

Seven specific situations are outlined in Article 25 (1 & 2) where an employer can withhold or deduct an employee’s salary in the UAE.

Office of Al Mulla. Whatsapp: Click here. Location: Dubai. Phone: 00971501961291.

Is it legal to deduct pay from a salaried employee Dubai?

Under certain circumstances, employers can withhold or deduct an employee’s salary but must follow specific laws and regulations.

According to Article 25 (1 & 2), there are seven specific instances under which employers can withhold or deduct an employee’s wage, including:

  1. The redemption of loans.
  2. Exceeding entitlements.
  3. Calculating contributions.
  4. Worker contributions to savings funds or loans.
  5. Instalments for social projects or benefits.
  6. Amounts deducted for violations committed by employees.
  7. Debts due pursuant to a judgement.

However, it is not permissible to deduct an amount greater than allowed except with the approval of the competent court.

Employers cannot arbitrarily deduct pay from salaried employees and must follow the laws and regulations.

Salary deduction in UAE 2023.

Employee salary issues are a common concern for workers in the UAE.

While employers have the right to withhold or deduct an employee’s salary under certain circumstances, they must follow specific laws and regulations.

Employees who feel their salary is unfair or insufficient can seek legal advice.

FAQs about deducting pay from employee.

Salary deduction is legal in UAE, but only under specific circumstances outlined in the labor regulations, such as loan redemption, excess payments, and other approved purposes.
The employer can deduct amounts based on specific circumstances, but the total percentage of wage deduction, considering all reasons, should not exceed 50%.

Conclusion.

In conclusion, employers in the UAE have certain rights when it comes to withholding or deducting an employee’s salary, but they must follow specific laws and regulations.

Employees should know their rights and seek legal advice if their salary is unfair or insufficient.

By understanding these issues, employees can ensure that they are receiving fair compensation for their work.

Contact the office of Al Mulla via Whatsapp. Click here. Or visit us at our law firms: Dubai. You can also call us on phone: 00971501961291.

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