salary reduction

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  • 1 Post By TallyHo
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salary reduction


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Old 4th February 2014, 11:06 AM
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Default salary reduction

hello,
can your employer reduce your salary if he keeps you in the same position, my company is reducing 20% of my salary saying that they want to save cost, everyone else's salary is reduced too.
but can they reduce the salary and issue a new contract even if the position is the same.
PS: they are not changing the basing but reducing the allowances and removing the yearly tickets to all employee
thanks

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Old 4th February 2014, 11:44 AM
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Hmm .. I guess that is not right given the fact UAE economy is doing well or atleast OK. Unless you co is in trouble this should not happen...

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Old 4th February 2014, 03:11 PM
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Employers reserve the right to revisit their contract with you at a future date (99% of the time). So yes unfortunately they can reduce/remove parts of your wage.

The economy doing well doesn't really have anything to do with it. The growth certainly isn't across the board in all industries. A lot of employers do this when they know they are going to enter a period of hyper inflation (at which time they would need to increase wages to retain talent).

About the only two options available most of the time (barring there being a specific provision in the contract against this), are to accept the new terms or end the contract.

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Old 4th February 2014, 03:18 PM
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Reductions in benefits is sadly a fact of the current economic situation here. There are few companies which are not trying to reduce their running costs - private, government, and semi government. I am in the same position at the moment with my contract rernewal due to be signed this month and I have heard through the grape vine that allowances will be cut and benefits greatly reduced in value. What to do? There are still people waiting in line for my job, I know. Perhaps my time here is coming to an end. There are other locations that are offering good salaries, of course depends upon your job set skills.

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Old 4th February 2014, 05:51 PM
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I thought the one home ticket a year was required by law or am I mistaken?

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Old 5th February 2014, 03:15 AM
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Quote:
Originally Posted by uberkoen View Post
I thought the one home ticket a year was required by law or am I mistaken?
Not required by law. If an employee is being terminated from employment and subsequently does not get new employment in the UAE, then the employer is required to provide a one way ticket back to their home country.

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Old 5th February 2014, 03:48 AM
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If the company is reducing everyone's salary by 20% and canceling benefits, then they're clearly facing financial trouble. Work is drying up, the cash flow is slowing down.

It's really not worth your time or effort to fight this. They won't look kindly on you. But take the hint and try to find another job. It's much easier to find a job while still employed than after you've been made redundant.

Quote:
Originally Posted by laroukine View Post
hello,
can your employer reduce your salary if he keeps you in the same position, my company is reducing 20% of my salary saying that they want to save cost, everyone else's salary is reduced too.
but can they reduce the salary and issue a new contract even if the position is the same.
PS: they are not changing the basing but reducing the allowances and removing the yearly tickets to all employee
thanks
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Old 5th February 2014, 04:27 AM
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Also does not bode well for the employee's end of service benefit, which is based on monthly salary.

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Old 5th February 2014, 05:13 AM
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Just gotta grin and bear it my friend .. At least until you find another job.

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Old 5th February 2014, 05:24 AM
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Quote:
Originally Posted by laroukine View Post
PS: they are not changing the basing but reducing the allowances and removing the yearly tickets to all employee
thanks
Quote:
Originally Posted by Amtmann View Post
Also does not bode well for the employee's end of service benefit, which is based on monthly salary.
If I read this correctly, the company is just getting rid of the allowances so that means that the base salary is the same. The End of Service benefits are based on base salary and not total package.
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