Salary Deduction in UAE (Rules & Law)

Asalm-oa-likum, Hello and Marhaba to our Valuable Readers.

We are trying to write about the most common and important issues UAE Workers facing.

We are here with the Topic Regarding “Salary Deduction and UAE Labour Law”.

When it comes to the comments and Mails, we have seen some employees working in UAE are facing Salary Deduction issues.

Please note that as per UAE LABOUR LAW, an employer (Company or sponsor) cannot reduce or deduct employee salary once they agreed and signed Labour contract.

Point to be noted that there are some scenarios added recently by Ministry of Labour in Article 60 that states:

"Any amount of money may not be deducted from the employee remuneration to recover particular rights, except in the following cases:

Before Proceeding to the Article 60, please note that below words were taken from official article by Ministry of Labour.  As per UAE LABOUR LAW employers (company) cannot deduct salary or remuneration from their staff wages unless for the below reasons.

UAE LABOUR LAW, ARTICLE 60:

1: Repayment of advances or amounts of money paid to the employee in excess of his entitlement, provided that deduction in this case may not exceed 10% of the employee’s periodic pay.

2:  Installments which are payable by law by the employees from their remuneration, such as social security and insurance schemes.

3: Subscriptions of the employees in the saving fund or advances due for payment to the fund.

4: Installments in respect of any social scheme or other privileges or services provided by the employer and approved by the Labour Department.

5: Fines imposed upon the employee due to offenses committed by him.

6: Any debts payable in execution of court judgment provided that not more than a quarter of the employee’s pay shall be deducted. In the event of numerous debts or creditors, half of the remuneration at the most may be deducted and the sums of money attached shall be divided pro-rata among beneficiaries after payment of any legal alimony amounting to one quarter of the remuneration.

What to do if you are not getting your Salary at time or Full?

If you are not getting your salary at time, full or facing salary deductions other than the above reasons, you could file a complaint with MOL about this.

Please be aware that non-payment of salary by an employer (company or sponsor) is a violation of the LABOUR LAW in the United Arab Emirates. In such case if the employer does not fulfil his commitments, employee (worker) is allowed to leave his place of work without notice.

As per Article 121 of the Federal Law No. 8 of 1980 which states:

"A worker may leave his work without notice in either of the following cases:

1:  If the employer fails to comply with his obligations towards him, as provided for in the contract or in this Law;

2: If he is assaulted by the employer or the employer's legal representative."

Labour Ban for Salary Complaint?

Don’t worry, an employment ban or Laour ban may not be imposed on you if you can successfully prove to the Ministry of Labour that you had left your place of work owing to non-payment of salary by your employer for 3 consecutive months.

Subsequently the Ministry of Labour shall issue its report in your favor, pursuant to which you should be able to take up another employment visa in all states of UAE without a labour ban being imposed on you.

Thank you For Your Time

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