Don't cut pay, UAE firms warned

Don’t cut pay, UAE firms warned

Firms that break contracts face prosecution.

July 26, 2010 3:13 by Samuel Potter

Companies operating in the UAE may face prosecution if they illegally cut salaries, reports Khaleej Times.

The paper says that the Ministry of Labour (MoL) clarified on Monday that companies cannot slash workers’ pay for any reason, even if they face mounting losses.

Saleh Al Jabri, Director of the Establishments Department at the Ministry, said: ‘‘It is illegal for a company to cut workers’ pay as the employment contract is a binding agreement attested by the Ministry and all parties must comply with its clauses.”

The paper said that Al Jabri advised workers to immediately report any case, so that the inspection department of the MoL could swing into action and investigate such violations. ‘‘The violating company will be prosecuted as manipulating workers’ salary is considered a crime.’’

Tags: cut pay, cutting pay uae, cutting salary uae, reduce pay uae, uae companies cutting salary

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1 Comment

Suresh on July 28, 2010 7:54 am

This is excellent news. But what is the MOL doing about the workers who are not getting salaries on time or were promised something back home and after landing here are getting a very different package ?

For example the taxi companies are alleged to be cutting salaries of their drivers on flimsy pretexts and are regularly changing the Commision percentage or the daily targets. As a direct result of these arbitrary changes the drivers end up with a lot less money. Is this not a cut in salary ?

Can Mr. Saleh Al Jabri enlighten us on what the MOL is doing about it . Is the MOL even aware to this ?