Wednesday, February 24, 2010

Visa renewal fee cannot be deducted from gratuity

A reader in Dubai asks: I’ve been working in a company for over four years. Recently they reduced Dh2,000 from my salary due to bad performance (that is the reason they gave). This prompted me to resign. However, I have 41 days remaining in my annual leave and they just renewed my contract in the June of 2009. I was informed by our public relations officer that the company will deduct the visa renewal fee and health insurance from my end-of-service entitlement. Is this legal? For the health insurance, they made us sign an agreement in October 2009 that if we did not complete the 12 months we have to pay for the remaining months. Regarding the remaining leave, they said it will not be converted to cash as I did not utilise it. Do I have any claim if they do all this?

No, it is illegal and you can complain to the Ministry of Labour to get the entire gratuity plus the compensation.
Questions answered by Advocate Eisa Bin Haider of Bin Haider Advocates & Legal Consultants.