I live in Dubai. A month ago my company decided to reduce my salary for no reason. I was asked to sign an agreement accepting the salary cut. My working hours were also increased by requiring me to work on Fridays without payment for overtime. I refused to sign the agreement as it is in violation of the labour contract I signed at the labour ministry. My contract is for a limited period and expires in March 2017. If I don’t sign the agreement, my services will be terminated. What are my options?

 

As per the UAE labour law, an employer has no right to force an employee to accept a salary reduction, or to convert an official leave day into a working day, or increase working hours to more than what is mentioned in the labour agreement without paying overtime. The questioner’s contract is for a limited period. In this case the employer shall comply with the labour contract and he is not entitled to change the terms and condition of the signed labour contract or terminate the same as long as the employee does not violate the UAE Labour Law. Termination due to a salary reduction is considered arbitrary dismissal, which requires providing the questioner with compensation as per the UAE Labour Law.

 

Disciplinary action

I’m the owner of a company. As per the UAE labour law, what disciplinary action can I take against an employee?

 

As per Article 102 of the UAE Labour Law Federal No 8 of 1980, the disciplinary penalties that an employer or his representative may impose on workers shall be as follows:

A warning, fine, suspension from work, reduced pay for a period not exceeding 10 days, forfeiture or deferment of a periodic increment in establishments having an increment scheme, forfeiture or promotion in establishments having a promotion scheme, dismissal without prejudice to severance pay and dismissal with forfeiture of all part of the severance pay. This penalty may only be imposed on the grounds expressly specified in Article 120.

 

Questions answered by advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants.