Salary Deductions in the UAE: When Are They Legal and When Are They Not?

 Salary deductions in the UAE are strictly regulated. Employers cannot deduct wages arbitrarily and must have legal grounds for any deductions. The UAE Labour Law specifies when deductions are allowed and sets limits to prevent employee exploitation. Employees facing unlawful salary deductions can file a complaint with MOHRE or take legal action with the help of advocates in Dubai.

When Are Salary Deductions Legal?

Employers can only deduct salaries in cases such as:

  • Advance salary payments – If an employee took a salary advance, the deduction must not exceed 10% of their monthly salary.
  • Workplace damage caused by the employee – The deduction must not exceed five days’ salary per month.
  • Unpaid leave – If an employee exceeds their allowed leave days, deductions may apply.
  • Loan repayments – If an employee took an employer-approved loan, the repayment amount cannot exceed one-quarter of their salary.

When Are Salary Deductions Illegal?

Employers cannot deduct salaries for:

  • Minor workplace mistakes or errors.
  • Resigning before completing a contract (unless contract states otherwise).
  • Missing work due to medical reasons without due process.
  • Personal disputes unrelated to the job.

Legal Actions Employees Can Take Against Unlawful Deductions

  1. Request a Salary Breakdown – Employees should ask for a written explanation of deductions.
  2. File a Complaint with MOHRE – If deductions are unjustified, employees can lodge an official complaint.
  3. Take Legal Action – Labour court can order salary reimbursement if deductions are illegal.

How Advocates in Dubai Assist with Salary Deduction Cases

  • Reviewing salary slips and deduction records.
  • Filing claims against employers for unlawful deductions.
  • Representing employees in MOHRE and labour court proceedings.

Employees should ensure salary deductions are legally justified and seek legal assistance if their wages are unfairly reduced.

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