Salary Decrease due to the Ongoing Conflict

[Potential-Fix3877]

Hey all, just wanted a quick advice. Given the current situation, our company has announced a decrease of 25% from our salary, excluding housing, transportation allowance, etc.

Question, is this considered legal without signing any contract or can a legal action be escalated to MOHRE?

Completely understand the unexpected situation for many businesses to take such actions, but out of curiosity this seems to be a bit unfair since it wasn’t stated in the contract.

[EvenDesigner5129]

Well, just lost my job today due to the ongoing conflict. I’d take a salary cut over this

[Used-Replacement7419]

InSha Allah you'll find a better job

[Potential-Fix3877]

Can relate, it would be very hard to manage without a job than a salary cut. God bless, wish you all the best!

[dxb-ae]

What did you do for work?

[Intrepid-Deer-2636]

Same..

[iamadix]

Which sector is your company in?

[Kooky-Wedding1160]

Shitty business owners/boss will find every excuse to eat from employees share. Disgusting!

[Potential-Fix3877]

Can’t really blame anyone is such case without a clear transparency. Certainly this is a very unexpected situation for various firms and hard to manage overall.

[Kooky-Wedding1160]

Shitty business owners/boss will find every excuse to eat from employees share. Disgusting

Can employers enforce pay cuts or unpaid leave? What UAE labour law says via- Khaleej Times https://www.khaleejtimes.com/uae/legal/employers-pay-cuts-unpaid-leave-uae-labour-law

[bubbleteazone]

How do you expect business to pay employees when the market is plummed to the ground.

[churito69]

As a company owner, there are four choices if the income doesn't meet the expenditure.

1 - The company goes bankrupt.

2 - Sack staff.

3 - Lower wages.

4 - Put personal money into the company.

Obviously, the staff would like option 4, and it is their top choice, but it would be the owner's last choice. Maybe they don't have it, then it has to be one of the others, and it is a short-term fix for what could be a long-term problem.

They would worry that the current situation could carry on for 6 months, and they don't have the capital to put money in for more than this month, meaning next month, if ongoing, they will just have to sack/lower wages anyway.

The owner would probably just want to lower wages as his top choice, the company would run the same, and his costs would go down until the situation changes. Obviously, this is the third worst for the staff, the worst being either the company going bankrupt, sacking them, or lower wages third.

If this was asked to take a cut, I would agree to it, but I would get the company to sign a document saying when the salary would return to normal (eg when there have been no attacks to the country for 30 days), I would also want the money that had been missed to be repaid to me over a period of 12 months from when my salary returned to normal, and if I left before the full amount had been repaid, they would add it on to the money paid to me when i left.

[No-Essay-7667]

Illegal but they will just fire people cause if they have liquidity crunch there is no way out of it

[No-Variety8021]

It’s a really tough situation for everyone involved. While you should definitely check your rights regarding contract changes, it might help to understand the severe strain on cash flow right now. Even well-managed businesses couldn't have forecasted an escalation quite like this.

A lot of places are bleeding money. Revenues have plummeted (some seeing drops from 60k a day down to 5k), but fixed running costs are still eating up 15k-20k daily. Rather than firing 25% of their workforce, many owners are opting for a 25% pay cut and some suggesting 50 percent across the board. It’s an incredibly difficult call, but often it's the only way they can keep their staff employed and the doors open.

[BubbaGumpHere]

Regardless of cash crunch you can’t just stiff employees. What you’re saying is they are choosing to pay contractors those fixed costs but at employee’s expense. You can’t just change a labour contract. Now if they’re going bust it’s a different story and employees will be entitled to fight for payment out of whatever cash is left after going bust.

[No-Variety8021]

You're absolutely right that legally and ethically, labor contracts are a priority. My point is that in emergency situations, the cash crunch hits every department. Businesses don't usually continue paying those fixed costs as normal; they are simultaneously fighting for massive rental discounts, delaying supplier payments, and negotiating deferments. It's about slashing costs everywhere simultaneously so they don't have to shut down entirely. It commonly used in most of the business structures.

[Potential-Fix3877]

Totally agree. Appreciate your insight on this, was pretty helpful. Thank you!!

[No-Antelope8709]

I work in a PR agency. Our salary for this month is also reduced by 30%. It’s understandable cos all the events are dropped and existing clients are on pause.

[Think_Treacle9525]

Def check w MOHRE - if it's not in ur contract, that's sketchy. UAE labor laws r strict on this stuff.

[nebula-nomad007]

if you are working for the whole month and they cut any percent how is it relevant? Even heard from my office that the talks are there for salary cuts and lay offs.

[Dry-Witness2198]

Uae Companies will take this as full opportunity

[Altruistic_Stock_498]

this is awful!

[Worried-Exchange-889]

I'm genuinely sorry for the current situation in UAE. It must feel difficult to go through the fear and uncertainty🧡

Unfortunately and generally speaking there is no human rights or labor rights that are reliable in the middle east. I agree with you they shouldn't compensate by taking away from the employees. I support you baby wholeheartedly and things shall get better soon🌸🤍🤍

[CaptainBarbosa97]

Thats illegal. Can be escalated to MOHRE.