Here’s when your company can deduct your salary in UAE

I recruited a Nepalese as a cleaner on a contract of unlimited duration. I spent Dh4,500 in November 2017 to get him a two-wheeler driving licence. The employee now wants to resign from employment and join another company. Can I recover the driving licence money?

It is assumed that you gave a loan to your employee for the purpose of obtaining a driving licence and such a loan is documented between you and your employee. If such is the case, you may recover this money back from your employee. This is in accordance with Article 135 of the Federal Law No. 8 of 1980 regulating Employment Relations in the UAE. It states, “An employer may deduct any amounts owed to him by an employee from the latter’s severance pay.”

Know the law

An employer may recover a documented loan back from the employee. Amount owed to the employee can be deducted from his severance pay.

Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom, Singapore, and India. Full details of his firm on: Readers may e-mail their questions to: or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.

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