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The UAE Labour Law strictly prohibits employers from directly or indirectly deducting hiring costs from a worker’s salary.
In fact, the employer is responsible for bearing the costs of the visa issuance and renewal, medical care, and insurance.
However, the law enables employers to deduct from workers’ salaries in specific cases and under certain regulations.
In all cases, the percentage of deduction may not exceed 50 per cent of the pay.
No amount may be deducted from the worker’s wage except in the following eight cases:
>>To redeem loans granted to the worker within the maximum 50 per cent limit of the monthly deduction percentage from the worker’s wage, after obtaining the worker’s written consent and without applying any interest.
>>To redeem the amounts paid to the worker in addition to entitlements, provided that the amount deducted does not exceed 20 per cent of the wage.
>>The amounts deducted for the workers’ contributions in bonuses, retirement pensions and insurances.
>>The worker’s contributions to the savings fund of the establishment or the loans payable to the fund approved by the Ministry of Human Resources and Emiratization.
>>Instalments for any social project or other benefits or services provided by the employer and approved by the ministry, provided that the worker agrees in writing to participate in the project.
>>Amounts deducted from the worker’s salary due to violations committed, according to the penalties applied at the establishment and approved by the ministry, provided that the deducted amount does not exceed five per cent of the wage.
>>Debts of the worker due according to a court verdict, without exceeding a quarter of the wage, except for the awarded alimony debt, which can be more than a quarter of the wage. If the worker has several debts, the amounts to be paid shall be distributed as per the categories.
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>>Amounts necessary to rectify the damage caused by the worker, as a result of a mistake or violation of the employer’s instructions, which led to the destruction, demolition or loss of tools, machines, products, or materials owned by the employer. The deducted amounts shall not exceed the wage of five days per month, except with the approval of the relevant court.
sherouk@khaleejtimes.com
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