HZLegalResigning with a 90-Day Notice in the UAE: Can Your Company Withhold Your Salary or Deduct Visa Costs?

Introduction

If you’ve resigned from your job in the UAE and provided a 90-day notice as per your employment contract, you may be wondering about your rights regarding your salary and potential deductions, especially for visa costs. The UAE has clear labor laws that protect employees during the resignation and end-of-service process, primarily under Federal Decree-Law No. 33 of 2021 (UAE Labour Law). This article will outline whether your employer can withhold your salary or deduct visa costs after your resignation.

1. Resigning with a 90-Day Notice: Understanding the Legal Framework

Under UAE labor law, either party (employer or employee) has the right to terminate the employment relationship by giving the notice period stated in the employment contract. In your case, the 90-day notice is the time frame you are legally required to continue working before officially leaving the company.

According to Article 43 of Federal Decree-Law No. 33 of 2021, an employee must give the agreed-upon notice period, which can be no less than 30 days and no more than 90 days. During this notice period, you are entitled to all the rights and benefits of employment, including your salary and any accrued leave.

A professional setting where an employee hands over a resignation letter to an employer in a modern office. In the background, symbols like a calendar and a salary slip can be seen, representing the 90-day notice period and salary. The employee's expression is calm and confident, while the employer reviews the letter. The scene reflects a legal and formal process under UAE labor law.
A professional setting where an employee hands over a resignation letter to an employer in a modern office. In the background, symbols like a calendar and a salary slip can be seen, representing the 90-day notice period and salary. The employee’s expression is calm and confident, while the employer reviews the letter. The scene reflects a legal and formal process under UAE labor law.

2. Can Your Company Withhold Your Salary During the Notice Period?

No, your employer cannot legally withhold your salary during the notice period unless you have violated specific contractual obligations or UAE labor law. The law clearly states that employees must be paid for the work performed during their notice period. Here’s what you need to know:

  • Full Salary Entitlement: You are entitled to receive your full salary, including any allowances, bonuses, or commissions, during your 90-day notice period.
  • Payment of Outstanding Dues: Once your employment ends, the company is obligated to settle any outstanding dues, including your final salary, end-of-service benefits (gratuity), and unused leave compensation.

If your employer withholds your salary without legal justification, you can file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE), which will investigate the matter and ensure your rights are protected.

3. Can Your Company Deduct Visa Costs from Your Final Settlement?

In the UAE, employers are responsible for the costs associated with obtaining and renewing an employee’s visa. This includes the cost of:

  • Work permits.
  • Residency visas.
  • Health insurance (which is mandatory under UAE law).

According to UAE Labor Law, the company cannot deduct visa-related expenses from your salary or final settlement, even if you resign before the end of your contract. Article 17 of Ministerial Decree No. 52 of 1989 explicitly states that employers are responsible for covering all visa and work permit expenses, and passing these costs onto the employee is prohibited.

4. End-of-Service Benefits

Upon resignation, you are entitled to end-of-service benefits (gratuity) if you have completed at least one year of continuous service with your employer. The calculation of gratuity is based on your final basic salary and years of service:

  • For less than 5 years of service: You are entitled to 21 days of basic salary for each year of service.
  • For more than 5 years of service: You are entitled to 30 days of basic salary for each year after the first five years.

End-of-service gratuity cannot be deducted or reduced due to visa costs or any other company-related expenses.

5. What to Do if Your Salary is Withheld or Deductions Are Made

If your company attempts to withhold your salary or deduct visa costs from your final settlement, here are the steps you can take:

  • Review Your Employment Contract: Ensure that the notice period and your rights during the notice period are clearly outlined in the contract. If the contract includes any clause allowing for deductions of visa costs, this would be considered illegal under UAE labor law.
  • Communicate with Your Employer: If your salary is withheld or deductions are made, communicate with your employer in writing to request clarification and assert your rights.
  • File a Complaint with MOHRE: If the issue is not resolved, you can file a formal complaint with the Ministry of Human Resources and Emiratisation (MOHRE). The MOHRE will mediate the dispute and, if necessary, take legal action against the company to ensure you receive your dues.

6. Conclusion

When you resign from your job in the UAE with a 90-day notice period, your employer is legally obligated to pay your full salary during that period and cannot deduct visa costs from your final settlement. UAE labor laws are designed to protect employees from unfair practices, and companies must comply with these regulations.

If you encounter any issues regarding withheld salary or unauthorized deductions, you have the right to escalate the matter through the appropriate legal channels, including MOHRE.

By knowing your rights under UAE labor law, you can navigate your resignation with confidence and ensure that you receive the compensation and benefits you are entitled to.

 

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