Is it legal for employers in the UAE to deduct visa costs from your salary?
What UAE Labour Law says about salary deductions for visa and recruitment costs
Dubai: If your employer is deducting money from your salary to cover visa or recruitment costs, you may be wondering whether this is legal. The answer is no. Under the UAE Labour Law, it is illegal for employers to make employees pay for their hiring expenses.
Employers must cover recruitment and visa costs
The UAE Labour Law - Federal Decree Law No. 33 of 2021, clearly states that the employer is responsible for all recruitment-related expenses. This includes the cost of hiring, travel, visa issuance, medical tests, and the employee’s residency permit. These costs must be fully covered by the employer with whom the employee has agreed to sign a contract.
According to the UAE Ministry of Human Resources and Emiratisation (MOHRE) in its Know Your Rights guide for new workers, employers are bound to settle all recruitment expenses. This includes any fees paid to recruitment agencies accredited by the worker’s home country, as well as all post-arrival formalities in the UAE.
Before you arrive in the UAE
Before travelling to the UAE for employment, your recruitment agent or employer should clearly explain the terms of your job offer. This includes your job title, duties, salary, benefits, and working conditions. You must be fully aware of all terms and conditions prior to signing the offer.
In addition, you should be provided with an annex to the job offer, which outlines your rights and responsibilities under the UAE’s Labour Law. You have the right to request a copy of your job offer and are advised to keep it in a safe place.
What does the law say?
Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, also known as the UAE Labour Law, outlines the rules regarding recruitment costs in Article 6.
Article 6 – Recruitment and Employment of Workers:
No work may be performed, and no worker may be employed in the UAE without a valid Work Permit issued by MOHRE.
The Executive Regulations define the procedures for obtaining, renewing, and cancelling work permits.
Only licensed entities may engage in recruitment or employment mediation.
Employers are prohibited from charging workers for recruitment or employment costs, either directly or indirectly.
The Minister, in coordination with other authorities, may issue further decisions regarding employment restrictions and requirements.
In summary, an employer is not allowed to recover recruitment or visa costs from the employee under any circumstances.
Can your employer deduct money if you resign?
In general, your employer cannot ask for money simply because you choose to resign. However, there are a few specific situations under the law where payment may be required:
1. Resignation without serving notice
As per Article 43 of the UAE Labour Law, if you resign without completing the notice period agreed in your contract, you are required to compensate your employer. This is known as payment in lieu of notice and must be paid even if your departure causes no direct harm to the employer.
2. Resignation during the probation period
If you resign during your probation period, and your contract contains a clause requiring you to reimburse recruitment or contracting costs, your employer may ask you to pay.
Under Article 9 of the Labour Law:
“The new employer shall compensate the original employer with the costs of recruiting or contracting with the employee, unless agreed otherwise.”
If no such agreement exists in your contract, then you are not required to pay these costs. However, if the contract specifically mentions that you are liable for these costs upon resignation during probation, your employer may legally recover the expenses from you.
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