Question: A questioner from Dubai asks; I have worked in a company for two years as a salesman with a salary plus commission. My contract is for unlimited period. One month ago my manager informed me that my salary and my commission will be reduced by 20 per cent because I’m not achieving the target put forth by my company. I told the company that I had not agreed on such reduction. However, my company is saying that in accordance with the UAE labour law, if the employee receives salary plus commission and is not achieving the agreed target, the employer is entitled to reduce the salary and the commission. In addition, my manager informed me that if I did not accept the reduction I must leave work in 2 weeks time. I want to know, is my company legally entitled to terminate my services this way? Is this action deemed an arbitrary dismissal? Again, while according to my employment offer letter the notice period is 2 months, but my manager says the notice period shall be 30 days only as per the UAE labour law and the notice period mentioned in my offer letter has no value. Please advise.
Answer: I would like to clarify to the questioner that the employer is not entitled as per the UAE Labour law to terminate the employee for non-acceptance of the salary reduction. Therefore, termination of an employee this way may be deemed by the Dubai Supreme Court as an arbitrary dismissal for which he is entitled to compensation. Regarding the notice period, if the employer failed to accept the 2 months notice period as provided for in the employment offer letter in this case, the employer is obliged to compensate the questioner for the period of two months, as both the employer and employee may agree to increase the notice period, and in case of such increase, both parties shall abide by the same.
Gratuity calculation
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Questioner from Dubai: I worked in a company under a limited contract for a period of almost two years which expired in May 2015. One month before the expiry of this contract I sent an email to my company stating I do not wish to renew the contract and I would join another company on the expiry of my labour contract. I asked them to calculate my end-of-service gratuity. On the day my labour contract expired, I left work and handed over all official possessions to the company. Its almost two months now, but my employer has yet to provide me with my rights on the grounds that I left work abruptly and did not observe the notice period. He said in accordance with the UAE labour law, the employee shall lose end-of-service gratuity if he has left work without notifying the employer and the latter have the right to report such violation to Ministry of Labour and to ask them to impose one-year ban. The employer has also refused to cancel my labour card and visa. Further, my company has asked me to collect company debts from customers with whom I had dealt. My manger says I have to work for a notice period until I collect all my customer debts. Please advise.
Answer: I would like to clarify to the questioner that the employer is not entitled legally to act in this way, as the questioner has terminated the limited employment contract legally on the basis that the Labour Law does not oblige the employee who is under a limited contract to give notice to the employer or to work for a notice period. As for the question on collection of the company’s debts, if the questioner is not personally a guarantor for these debts, then the labour law does not oblige him to collect the same. Therefore, if the questioner failed to get his labour rights amicably, he shall immediately file labour complaint before the Ministry of Labour in this regard.
— Questions answered by advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants.
(Compiled by Bassam Za’za’, Legal and Court Correspondent)
