No amount of money may be deducted from an employee's remuneration respect of private claims.
Q1. I was employed with a Dubai-based company from June 1994 to June 2012. In 1997, I moved to a company-assisted accommodation, for which the rent was deducted every month from my salary. In 2007, my wife also joined the same company. After I left the company in 2012, I transferred my tenancy contract to my wife's name so that the monthly rent would be deducted from her salary. In 2014, we noticed that an additional amount was getting deducted from her salary categorised as 'salary arrears'.

On enquiring about the same, the company informed my wife that there was an additional amount that was supposed to be deducted every month from my salary, which they had "overlooked". This amount comes to about Dh40,000. They said that if my wife resigned, the amount would be deducted from her gratuity amount. Is this legal? Can they deduct arrears linked to my salary from my wife's? Please note, the mistake was made by the company.

A. Pursuant to your queries, we assume that the employer where you were employed and currently your wife is employed is an entity registered in mainland Dubai. An employer cannot deduct any part of the salary of an employee to settle the arrears of a third party. Even if you had to pay any arrears to your ex-employer they cannot claim the same from your wife unless your wife has provided her consent. This in accordance with Article 60 of the Federal Law No. 8 of 1980 regulating Employment Relations in the UAE (the 'Employment Law'), which states, "No amount of money may be deducted from an employee's remuneration respect of private claims, except in the following cases:

(a) The recovery of advances or amount of money paid to the employee in excess of the entitlements, on condition that the amount deducted in this case does not exceed 10 per cent of period remuneration;

(b) Contributions which the employee is required by law to pay from remuneration, e.g towards social security and insurance schemes;

(c) The employees' contributions to a savings fund or repayment of advance repayable thereto;

(d) Contributions towards any welfare scheme or in respect of any other privileges or services provided by the employer and approved by the employment department;

(e) Fines imposed upon the employee for any offence he has committed;

(f) Any debt payable in execution of the judgement of a court of law;

Provided that the deduction shall not exceed one-quarter of the employee's remuneration. Where two or more debts are payable, the maximum shall be half the employee's remuneration and the sums of money attached shall be divided pro rate among the beneficiaries, after payment of any legal alimony at the rate of one-quarter of the employee's remuneration." 

Based on the aforementioned provision of law, the employer of your wife cannot deduct her salary against any amounts her employer wants from you. Your former employer has now lost the right to claim the same from you based on aforementioned Article 60(a) of the Employment Law as the claim shall not be within one year of you leaving the employment in the said company. Article 6 of the Employment Law states, ".. In all cases no claim of any entitlement due under the provisions of this law, shall be heard if brought to court after the lapse of one year from the date on which such entitlement became due, and no claim shall be admitted if the procedure stated in this Article are not adhered to." Your former employer may have to file a commercial / civil claim against you to recover any amounts you may owe them. 

SOURCE : KHALEEJTIMES