Dubai: UAE companies must continue to pay their staff housing allowance even if they are laid off, a senior judge in Dubai said.
Judge Dr Ali Al Hosni, from Dubai Courts, said that last year, the Ministry of Human Resources and Emiratisation had ruled that companies affected by the COVID-19 pandemic should provide employees with housing until they have redeemed their dues and left the country, or have been granted the right to work for other companies.
“It is a wise order by the ministry. Article 131 of the Federal Law provided the circumstances under which an employer should provide the employee with housing, where the employee is allowed to stay even after the termination of the work contract, until he or she has redeemed all dues,” said Judge Al Hosni.
As the pandemic continues to have a major impact on global markets, with clear repercussions on employment, in UAE, however, the authorities have introduced a range of measures aimed at helping residents deal with the challenges that could lie ahead.
The authorities have also advised that anyone who had been terminated and denied housing allowance, or anyone who was forced out of housing provided by the employer, should contact their local court.
What the law says
Article 131 of the UAE Federal Law states:
The employer shall, upon the termination of the contract, bear the expenses of repatriation of the worker to the location from where he or she was hired, or to any other location agreed upon between the parties.
Should the worker, upon termination of the contract, be employed by another employer, the latter shall be liable for the repatriation expenses of the worker upon the end of his or her service.
