# Limited Contract - have to pay 45 days Salary to previous company



## Samirak

hello

I wondered if anyone can advise me; I took a job on a dubai visa for a locally owned company, I was a little nieve and unsure of the labour law as i was a new expat from the UK. I have since discovered that my My contract was a limited one for 3 years.

I have resigned after 8 months as they keep doing management changes firing people on the spot (including my manager) and have not payed staff commissions for over a year now.

I have since got a new job which works fantastic for me and I was given an NOC from my previous employer along with the visa transfer papers which they agreed and everything seemed fine my company did not mention any costs owed to them. 

3 weeks after I have left the company and ready to begin my new one they have advised I owe them 27,000 AED or they will not transfer my visa.

According to labour law I owe them 45 days salary as compensation for breaking a 3 year limited contract.

This was a huge blow as I do not have the money, and as im now in mid process of transferring my visa I cannot even take out a bank loan to cover this cost.

I apprecaited my nievity and my error as I made the mistake of not understanding the contract and naturally I accept the law is the law and will have to pay this money.

However my question is regarding how they calculate my 45 day fine?

Currently my 45 day salary fine is being charged based on my TOTAL salary which includes my basic salary, housing and Transportation and mobile Phone

I have noticed that they calculate my annual leave on my basic salary (not incl of Mobile, housing and Transportation) therefore shouldnt my 45 day fine also be calculated on my basic salary

My actual documented basic salary is half of that of my full salary and this difference would make a huge drop in what I owe to them by almost 50%

Any advice is greatly appreciated on whether the 45 day charge should be based on my basic salary or my Total Salary


----------



## Andy Capp

Talk to an employement lawyer... I did think though that everything (including eos benefits) are based on Basic salary only...


----------



## stevieboy1980

ALL benefits, or in this case deduction should be based on a basic salary..........


----------



## Samirak

Thank you so much for your replies following your comments I contacted my company asking them to advise if they are basing their charges upon basic salary or Full salary and they responded as follows;

".....it is clearly mention in Article 116 the compensation and definition of remunerations term which is containing your entire salary package not the basic salary. "

They have attached the following Article scanned to me with their responce; 

Article 116 of the Labour Law states: "Where a contract is revoked by the worker for reasons other than those specified in Article 121, he shall be required to compensate the employer for any prejudice the latter sustains as a result, provided that the amount of compensation shall not exceed half the worker's remuneration for three months or the residual period of the contract whichever is shorter unless the contract contains a provision to the contrary

However I have just looked on the Ministry of Labour website its has changed the word *remuneration *to *wages*

The Latest Article on MOL website stated

Where a contract is revoked by the worker for reasons other than those specified in Article (121), he shall be required to compensate the employer for any damage the latter sustains as a result, provided that the amount of compensation shall not exceed half a month *wage *for three months or for the remaining period of the contract, whichever is shorter, unless otherwise stipulated in the contract.

Maybe I just being pedantic but if you could provide your opinion on my previous companies responce that would be most appreciated


----------



## crazymazy1980

Samirak said:


> Thank you so much for your replies following your comments I contacted my company asking them to advise if they are basing their charges upon basic salary or Full salary and they responded as follows;
> 
> ".....it is clearly mention in Article 116 the compensation and definition of remunerations term which is containing your entire salary package not the basic salary. "
> 
> They have attached the following Article scanned in me;
> 
> Article 116 of the Labour Law states: "Where a contract is revoked by the worker for reasons other than those specified in Article 121, he shall be required to compensate the employer for any prejudice the latter sustains as a result, provided that the amount of compensation shall not exceed half the worker's remuneration for three months or the residual period of the contract whichever is shorter unless the contract contains a provision to the contrary
> 
> However I have just looked on the Ministry of Labour website its has changed the word *remunaration *to *wages*
> 
> The Latest Article on MOL website stated
> 
> Where a contract is revoked by the worker for reasons other than those specified in Article (121), he shall be required to compensate the employer for any damage the latter sustains as a result, provided that the amount of compensation shall not exceed half a month *wage *for three months or for the remaining period of the contract, whichever is shorter, unless otherwise stipulated in the contract.
> 
> Maybe I just being pedantic but if you could provide your opinion on my previous companies responce that would be most appreciated


I'd go back to the company and say they have got an out-of-date version of the labour law and point them in the direction of the one you have above.

Explain that it is no longer renumeration and is now wages and ask them to ammend their claim accordingly.

What can they do, they can't ask you for anymore so you gain or stay the same.

If murderers and rapists can use loopholes...


----------

