Remunerations (salary) as per UAE Labour Law

Remuneration as per UAE Labour Law

Remuneration as per the Chapter III Section 4 Article 55 shall be paid on a working day and at the place of work . It shall be paid  lawfully in national currency.

As per the Chapter III Section 4 Article 56, employees who are engaged on yearly or monthly remuneration shall be paid at least once a month. All other employees shall receive their remuneration at least once in every two weeks.

As per the Chapter III Section 4 Article 57, the daily remuneration of an employee on piece pay shall be computed on the basis of the average pay received for actual days of work during the period of six months prior to the termination of service.

As per the Chapter III Section 4 Article 58, settlement of the remuneration payable to employees irrespective of its amount or nature shall be evidenced only in writing, by declaration or oath. Any agreement to the contrary shall be null and void even if made before the effective date of this Law.

As per the Chapter III Section 4 Article 59, employees are not obliged to buy food or other commodities from specific shops or products manufactured by the employer.

As per the Chapter III Section 4 Article 60, any amounts of money may not be deducted from the employee’s remuneration to recover particular rights, except in the following cases:

1. Any advance amount of money paid to the employees in excess of his entitlement. But deduction in this case may not exceed 10% of the employee’s period pay.
2. Installments (such as social security and insurance schemes) which are payable by law by the employees from their remuneration.
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. Any fines imposed on 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.

As per the Chapter III Section 4 Article 61 If the employee has caused  any loss, damage or destruction to any tools, machines, equipment or products owned by or kept in custody of the employer, to the extent that involvement of the employee was due to his fault or violation of the employer’s instructions, then the employer has the right to deduct employee’s pay the amount required for rectifying error or restoring the item to its original condition, provided that the amount to be deducted shall not exceed five day pay each month.

The employer can apply to the competent court through the concerned Labour Department for authorizing him to deduct more than this amount if the employee is financially sound or has another source of money.

As per the Chapter III Section 4 Article 62, the employer may not transfer an employee from the monthly pay to the daily, weekly, hourly or piece work pay without any written consent .

As per the Chapter III Section 4 Article 63, the minimum salary and the cost of living allowances payable with respect to a certain area or a particular profession, shall be fixed by a Federal Decree issued pursuant to proposal made by the Minister of Labour and Social Affairs and approved by the Council of Ministers. The Minister’s proposal shall be made either for description or reconsideration of the minimum pay after consulting with the competent authorities and trade agencies if any for both employers and employees based on studies and schedules of the cost of living price fluctuations prepared by concerned authorities in the State. Such minimum pay shall in all cases be enough for the employee’s basic needs and to secure means of living.

As per the Chapter III Section 4 Article 63, minimum salary and its amendments shall come into operation from date of publication of the specific decree in the Official Gazette.