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18 May 2024

UAE employers warned over random wage cuts

By Staff

UAE labour authorities have warned private sector employers against random cuts in the wages of their workers, saying any financial penalty for a single employee must not exceed five days salary per month.

Reacting to complains by workers, the Ministry of Labour said those who have been subjected to unfair wage cuts or deductions that exceed the defined limit can file a case with the Ministry against their employer.

A Ministry source, quoted by the Arabic language daily ‘Emarat Al Youm’, said any penalty imposed by the employer on his worker for any reasons must not exceed five days’ wage per month under the article 104 of the labour law.

“These fines must be recorded in a special register at the company which must state the value of the fine and the reasons for imposing it.”

The source said that in case the penalty includes a deprivation of the annual allowance or promotion, it must not be imposed more than once every year.

“Employers also must not impose any penalty on their workers for any mistake committed outside work…in any way, penalties should be applied only after the worker is notified of the problem.”

Emirat Alyoum said many employees complain that their employers are imposing heavy fines against them and making arbitrary and random wage cuts that could include their whole monthly salary.