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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.’’