Should UAE employer issue new contract when worker gets a salary increase?

I have worked for a company since 2007 and asked them to update my employment contract, as it said my salary was only Dh1,500 per month. That was the amount I received when I joined but it is now Dh3,500. Rather than amend the contract, they sent me an entirely new contract, which shows my start date as August 2014. When I asked why, they said they could only do it this way. I am concerned that if I resign I may not receive the gratuity I am due and I may also receive a ban even though I have been here for many years. SM, Dubai

If someone receives a salary increase the employer can arrange to update the contract of employment but should not issue a new one. Provided salary payments are through the government-mandated Wages Protection System, the proper amounts are being logged every month and a letter from the employer confirming an increase in salary and also stating that all other employment conditions are unchanged should be sufficient evidence of any increases. Legally the start date of the employment has not changed and the employer is wrong to issue a contract to that effect. SM should not accept this contract and may wish to contact the Ministry of Labour directly to ensure it has the correct information as evidenced by the original contract and ongoing salary payments. As he has been employed for many years, he will not get a ban on resigning and is entitled to the full end-of-service gratuity based on his current salary.

Keren Bobker is an independent financial adviser with Holborn Assets in Dubai, with over 20 years of experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE.


The advice provided in our columns does not constitute legal advice and is provided for information only. Readers are encouraged to seek appropriate independent legal advice.

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