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UAE: Can employees claim the difference if they spend less than the allowance?

An employer should have its own internal handbook or HR policy related to additional benefits to its employees

Question: I get an education allowance for my children. The company requires me to give invoices for the education costs annually for it to transfer the amount. However, the total amount I spend on my children's education is lesser than what I am eligible for. In this case, shouldn't the company give me the difference?

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Answer: In the UAE, any allowances either in monetary form or in kind provided to an employee may be included in an employment contract. This is in accordance with Article 8 of the Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relations read with Article 10 (1) of the Cabinet Resolution No. 1 of 2022 on the Implementation of Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relations, which states, “Subject to the provisions of Article 8 of the Decree Law:

The employment contract should include the name and address of the employer, the name, nationality and date of birth of the employee, proof of his identity, his qualification, the job or occupation, the date of work commencement, the workplace, the working hours, the rest days, the probation period, if any, the term of the contract, the salary agreed upon including the benefits and allowances, the annual leave entitlements, the notice period, the procedures for terminating the employment contract and any other data determined by the Ministry in order to regulate the relationship between both parties.”

Furthermore, an employer should have its own internal employees’ handbook or HR policy related to additional benefits to its employees and rules and regulations related to employment. This is in accordance with Article 13(3) of the Employment Law, which states, “The employer shall put in place internal work regulations, including work instructions, sanctions, promotions, benefits and other bylaws and internal regulations pursuant to the controls set by the executive regulations of this decree-law.”

However, these may not be mandatory for entities which have less than 50 employees. If any entity has more than 50 employees, it should have an employee’s handbook or HR Policy. This is in accordance with Article 14 (4) of Cabinet Resolution No. 1 of 2022, which states: "Subject to the provisions of Article 13 of the Decree Law, establishments that employ 50 or more employees shall set rules regarding the organisation of work, such as the regulation of work instructions, penalties, promotions and rewards, and the procedures for terminating the employment relationship, subject to the following:

The regulation of promotions and rewards shall include the criteria and rules related to promotions and rewards.”

Based on the aforementioned provision of law, it is assumed that a fixed amount towards the educational allowance has been mentioned in your employment contract although you provide the invoices for the education cost, and the amount stated in your employment contract is higher than the amount stated in the invoices you submit to your employer. In such case, you may claim the difference in amount from your employer.

Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.

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