# Employer reclaiming relocation allowance



## DXBGooner (Sep 13, 2017)

Hi All,

Asked in another thread but just got an email from HR about it so wanted to put into the main forum as well.

When I moved out here 4 months ago for a role I was given a fairly sizable 'relocation allowance' which was supposed to be paid in my first salary. It wasn't but I did get it in my second.

The job hasn't turned out as I would have hoped so I have said that as I am probation period I would like to leave in coming days.

HR are claiming that I "may need" to repay that allowance.

I've read and re-read my contract, DIFC employment law etc and cannot see how they can claim that. It wasn't an advance or bonus, it was an allowance paid as part of salary. Surely they cannot go back and claim allowances already paid (and spent!)


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## Gavtek (Aug 23, 2009)

I got a similar allowance, it said in my offer letter that I'd need to pay it back if I left during probation period (first 6 months).

I would ask HR to show you any document with your signature on it that acknowledges the allowance is to be repaid.


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## DXBGooner (Sep 13, 2017)

I'll re-read it again tonight but the offer letter (all 3 pages of it...) has zero mention of anything about repaying during probation or at any point as far as I can remember.

In the more broader contract it says company may deduct compensation regarding to loans, advances or overpayment. Nothing again about an allowance. 

As it's not a fixed term contract and DIFC firm I just don't think they can claim it back or block me from a different job?


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## Gavtek (Aug 23, 2009)

Don't know the extent of what they can do, they may withhold part or all of your final salary. You can't get your visa cancelled until you have signed the form saying that you have received all payments you're entitled to, which would put you in limbo.

From what I remember of the labour law, they're not allowed to claim back from you the cost of your recruitment. If it's a relocation allowance, that may fall under that category.


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## rsinner (Feb 3, 2009)

If its not part of any contract or the offer letter, they should not be claiming it back. Unless it is one of the HR policies, and your contract refers to the broad set of HR policies.

Obviously they will try to make your life difficult.


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## Chocoholic (Oct 29, 2012)

Every company is different. One company I worked for paid a furniture allowance, that was then repaid back in installment deducted from the salary each month. If you left early, you had to repay the whole lot in one go.

You need to check the full HR policies.


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## twowheelsgood (Feb 21, 2013)

If you got paid an allowance for 12 months and leave after 3 months, then you have an overpayment of nine months housing allowance and will need to repay it.

Its an entirely reasonable request.


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## UKMS (Jan 9, 2017)

As has been mentioned you may find the finer detail of allowances in your company policy rather than your contract...... mine is.


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## Horus_88 (Mar 11, 2014)

In some companies you need to repay it if you resign before 2 years


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## DXBGooner (Sep 13, 2017)

twowheelsgood said:


> If you got paid an allowance for 12 months and leave after 3 months, then you have an overpayment of nine months housing allowance and will need to repay it.
> 
> Its an entirely reasonable request.



To be clear this isn't a housing advance/allowance.

It is something else, it's a lump sum they paid me as "relocation". I relocated so kept my end of the bargain


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## twowheelsgood (Feb 21, 2013)

Gotcha - much clearer now - thanks.


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## Chocoholic (Oct 29, 2012)

But THEY paid for YOU to come and take a job with them. So many companies can and will reclaim that amount from you if you leave before a certain period.

Why should another company benefit from them having paid to bring you here? That will be their reasoning, and it's not unreasonable to request to be reimbursed for that amount.


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## DXBGooner (Sep 13, 2017)

Chocoholic said:


> But THEY paid for YOU to come and take a job with them. So many companies can and will reclaim that amount from you if you leave before a certain period.
> 
> Why should another company benefit from them having paid to bring you here? That will be their reasoning, and it's not unreasonable to request to be reimbursed for that amount.


I get that. But they spun me a lie on a role which was never as it was advertised. I did my part and moved out here and have given it a go. It's not what I want to do. Contractually there is zero in writing for them to claim it back. The money was spent as it should have been, moving my entire life out here for them.


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## rsinner (Feb 3, 2009)

DXBGooner said:


> I get that. But they spun me a lie on a role which was never as it was advertised. I did my part and moved out here and have given it a go. It's not what I want to do. Contractually there is zero in writing for them to claim it back. The money was spent as it should have been, moving my entire life out here for them.


Not debating the concept. You should check your contract and HR policies. If both are silent about any reimbursement then you are fine. if not, you will have to reimburse.


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## DXBGooner (Sep 13, 2017)

There is zero mention of any reimbursement in contract or HR Policies.

Contract has some vague wording about "my debact any other amount due from employee to company including any overpayments, loans or advances".

The allowance is none of those. It's not nice but I don't think they can legally claim a penny back.


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## twowheelsgood (Feb 21, 2013)

You say the allowance isnt an advance - they clearly think differently.

Ask them simply to point out where in writing in the offer or contract it says you have to repay it.

If they cannot, then point out to them that you do not owe them anything and that if they keep on at you, then you will go to the MoL.


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## ThunderCat (Oct 28, 2015)

A very important point is, what was this allowance named in your 2nd salary slip ?

Did it fall under allowances or salary advance ?


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## DXBGooner (Sep 13, 2017)

ThunderCat said:


> A very important point is, what was this allowance named in your 2nd salary slip ?
> 
> Did it fall under allowances or salary advance ?


We don't get payslips. The original documents in terms of offer letter called it an allowance.


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## Racing_Goats (Sep 5, 2015)

Pedantics of what they call it won’t really help you if you get tied up with a labour law issue or case or visa not cancelled or final salary deductions they believe is the rightful repayment of the sum paid for relocation. 

Rightly or wrongly the employer here has the default power because you presumably either want to leave uae or want to take another job and visa, both of which can be difficult unless you accept your final payment - opening a case to claim back a deduction can be a long and painful process dur by which you are unemployed/unemployable here?


Sent from my iPhone using Tapatalk


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## DXBGooner (Sep 13, 2017)

Racing_Goats said:


> Pedantics of what they call it won’t really help you if you get tied up with a labour law issue or case or visa not cancelled or final salary deductions they believe is the rightful repayment of the sum paid for relocation.
> 
> Rightly or wrongly the employer here has the default power because you presumably either want to leave uae or want to take another job and visa, both of which can be difficult unless you accept your final payment - opening a case to claim back a deduction can be a long and painful process dur by which you are unemployed/unemployable here?
> 
> ...



Thanks very helpful. I am not overly worried about the final payment part, the relocation allowance or however you want to badge it was a few multiples of monthly salary. I am more worried that they would be able to claim it all back rather than deduct from final salary if that makes sense


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## Stevesolar (Dec 21, 2012)

DXBGooner said:


> Thanks very helpful. I am not overly worried about the final payment part, the relocation allowance or however you want to badge it was a few multiples of monthly salary. I am more worried that they would be able to claim it all back rather than deduct from final salary if that makes sense


Hi,
If the amount claimed is higher than your final salary - then your employer will probably not cancel your visa until you pay them what they are asking for.
Without the visa being cancelled properly - you would not be able to move to another company.
As previously mentioned - the employer has the upper hand here and if you or they pursue a labour case - you could find yourself stuck here without a paying job or any income - leaving you open to problems if you have loans or credit cards - as non payment of these would lead to a police case.
In reality, you probably have two choices - either repay the relocation advance, get your visa cancelled cleanly and start a new job - or simply leave the UAE but without being able to come back again (as employer could file cases against you, in absence).
Cheers
Steve


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## DXBGooner (Sep 13, 2017)

Stevesolar said:


> Hi,
> If the amount claimed is higher than your final salary - then your employer will probably not cancel your visa until you pay them what they are asking for.
> Without the visa being cancelled properly - you would not be able to move to another company.
> As previously mentioned - the employer has the upper hand here and if you or they pursue a labour case - you could find yourself stuck here without a paying job or any income - leaving you open to problems if you have loans or credit cards - as non payment of these would lead to a police case.
> ...


Thank you. Even if the contract, HR policies and free zone labour laws suggest they cannot claim it back from me do you think that given the general environment here they could still dig their heels in as per the above?


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## Stevesolar (Dec 21, 2012)

DXBGooner said:


> Thank you. Even if the contract, HR policies and free zone labour laws suggest they cannot claim it back from me do you think that given the general environment here they could still dig their heels in as per the above?


Absolutely!


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## DXBGooner (Sep 13, 2017)

Fantastic...


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## rsinner (Feb 3, 2009)

DXBGooner said:


> Fantastic...


This is the worst case scenario. At the end of the day, you are the best judge of how your company will act or react. If it is a large company, in my experience they go by policies which are written, and do not use much discretion (or common sense). If it is smaller, it could be more ad hoc. 

Have you put in your papers formally?


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