Salary Deductions – What does UAE Labour Law say?
I have received umpteen number of emails and comments asking me the questions regarding salary deductions. Certain employers take the lack of knowledge of part of employees to deduct the salaries claiming reasons that are not in line with the laws. Gullible employees who have lack of knowledge of UAE Labour Law, fall prey to this trap of continuous harassment by employers and companies.
Salaries as per UAE Labour Law, can not be reduced/deducted once agreed through a labour contract. UAE Labour Law clearly states in what cases salary can be deducted. Below you will find an extract from the UAE Labour Law Article 60, which states the scenarios in which the Salary can be deducted.
Article (60) – UAE Labour Law
Any amounts of money may not be deducted from the employee’s remuneration to recover particular rights, except in the following cases:
a. 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.
b. Installments which are payable by law by the employees from their remuneration, such as social security and insurance schemes.
c. Subscriptions of the employees in the saving fund or advances due for payment to the fund.
d. Installments in respect of any social scheme or other privileges or services provided by the employer and approved by the Labour Department.
e. Fines imposed upon the employee due to offenses committed by him.
f. 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.
As you can read, employers can not deduct any salary or remuneration from their employees’ salaries unless for the the above reasons. If you face any salary deductions other than the above reasons, you could file a complaint with MOL about this.
Has your salary been deducted? Let me know through comments below.