UAE labour law sets a clear framework for salary changes — offering guidance to both employers and employees as business conditions evolve
Amidst regional tensions impacting UAE businesses, employers are considering salary cuts. Legally, salaries cannot be reduced without explicit written consent from employees. Employers should consult with staff before seeking consent, perhaps through meetings. If consent is refused, employers risk legal action or termination costs. Alternatives like unpaid leave or scheduling paid leave require consent but could mitigate costs. Compliance with...
Regional tensions have sparked broader concerns across GCC states, including the UAE, about the potential economic impact.
A Gulf Business report earlier this week on how employees can navigate salary cuts in the UAE prompted a wave of responses from readers who commented via our LinkedIn page.
Read more: Salary cuts amid regional tensions? What UAE employees need to know
While the law is clear — salaries cannot be reduced without employee consent — several LinkedIn commentators pointed to the pressure employees face in practice.
“Power is not always equal,” said Rohit Bassi on Gulf Business’ LinkedIn post about the story, adding that challenging decisions is “not always practical”.
Meanwhile, another LinkedIn user, Swilem, noted that “employee awareness remains critical”. From a governance perspective, Shadi Al Shorbagy commented that salary cuts should be a “last resort”, while Dina Roshdy...
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