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Employer Cannot Deduct Arrears from Salary Without Consent

When someone asks “without a Consent”, the answer is simply No! a company cannot deduct arrears from their employee’s salary without consent. A lot of cases regarding money deduction keeps on arising in different companies. The main reason why people do not say a word about these deductions is lack of knowledge. When people do not speak up for their rights, the unfairness keeps on getting higher. So, know the laws and let what is yours to stay yours.

You may come across a lot of salary deduction questions if you meet people working in different countries. This is why Labor lawyers in UAE help the people get rid of it all. Labor law advice in Dubai can prove to be of great benefit for those seeking help.

When an Employer or Company Cannot Deduct Money from The Employees!

One might not be aware where the employer or a company cannot deduct any amounts from their employees, A Consultation with Labor Lawyers in UAE can help people to better understand their rights when working in UAE. Some of the common inquiries where Employer cannot deduct any money from their employees are stated below:

Q1. Can the company deduct any amount of money from the account of the employees for the sake of any private claims or arrears correction of the third party?

No! the employers cannot deduct the remuneration of the employees without informing them. Also, it is so not allowed for the company to deduct the salary of the person for the sake of clearing the arrears of any third party.

The wife, in case of due arrears, can pay the money only if she has provided the consent. Without informed consent, no money can be deducted.

Q2. What if you transfer your tenancy contract to your wife and her salary starts getting deducted additionally?

This might happen to you that your wife’s salary starts getting deducted after you transfer your tenancy contract to your wife. This is against the rules and regulation. Deduction from the account of the third party is not at all acceptable. If someone has arrears regarding any particular thing and his wife works in the same company, no amount will be deducted from the wife’s account because the wife will be considered as a third party and no amount can be deducted from the third party’s accounts.

Q3. What if your wife resigns despite having incorrect arrears? Note that incorrect arrears mean the wrong deduction from the account of any employee.

Different cases have been witnessed in which the employees complained that their employers said that the gratuity payment of the employee will be cut off even if the arrears against them are wrong. This is against the law. The company policies should be straightforward and the employees should be treated fairly. If there are any incorrect arrears against the person, the company should give assistance for solving the problem rather than making it even worst. Also, cutting the gratuity because of wrong arrears is against the laws.

Know the Laws

No money can be deducted from the salary of any employee according to Article 60 of the Federal Law No. 8 of 1980 regulating Employment Relations in the UAE except for the cases given below;

  • Advance Payments Recovery

If the company has paid any amount of money to the employee in advance, the company can deduct it from the account of that employee. In this case, the amount that is deducted should not exceed 10 percent of the period salary of the employee.

  • Employee Payment Contributions to Services

In different companies, a certain amount of money is deducted from the account of the employees. This amount is basically considered as the contribution from the employees for different services. The company or the employers are eligible to deduct this money from the employee’s salary.

  • Saving Funds Contributions

If the employee has signed up for paying some money for different funding programs like saving funds or advance payment, the company will be allowed to cut it from the salary of participating employee.

  • Contributions for Welfare Schemes

If the employees have signed up for contributing to any welfare scheme or privilege service, their salary will be deducted. Note that these services must be first approved by the employer of the company or any other personnel appointed for the task.

  • Fines Payment

If the employees have committed an offense which rendered them to pay the fine, their salary will be deducted for a fine collection.

  • Debt Payment

If the employees have to pay a debt to the company, the company will be allowed to cut off their remuneration.

What Is to Be Noted?

The salary deduction should not be more than one-quarter of the remuneration. If the employee has to pay two or more than 2 debts, no more than half of the remuneration will be deducted. The money than collected will be distributed among the beneficiaries. Consult the labor lawyers in Dubai as soon as you perceive something is not right.

Dubai Labour Lawyers 

UAE labor law can be complex to so many people. So, Take the help of UAE labor law consultants in Dubai through HHS lawyers., because they can help you get the best labor law advice through qualified personnel looking forward to helping you with opened arms. You can get the services in the Middle East even in Abu Dhabi, Dubai, and so many other places as well.

Hassan Humaid Al Suwaidi., LL.B. is a Senior Partner in HHS Lawyers. He has 20 years of experience dealing with high-value and complex cases. Frequently featured in local and international legal directories and commended for his ability to attain favorable outcomes for clients, Hassan has been involved in some of the largest legal settlements. A major part of his work is providing expert legal advice on UAE legislation and acting for individuals and businesses during disputes and litigation.