Mandatory for an employer to cover all hiring expenses

It is quite clear under the UAE Labour Law that an employer is liable for all the costs associated with taking on an employee and it cannot ask an employee to cover these costs.

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I am serving my notice period, but my employer now says I have to refund them the cost of all visa fees as I am leaving before having completed the full three years. This is not what it says in my contract, which only states that the employee must pay back all visa fees if he or she leaves the company unjustifiably, or to work with a client or one of the company's subsidiaries. What does unjustifiably mean here? I will not be working for a client or one of its subsidiaries. GT, Dubai

Under the UAE Labour Law, it is quite clear that an employer is liable for all the costs associated with taking on an employee and it cannot ask an employee to cover these costs. The only exception is where an employee has agreed to a fixed-term contract and wishes to resign before the end of the contract. But GT was on an unlimited contract, so this does not apply. The term “unjustifiably” has no specific meaning in respect of local law and sounds like a term the employer can use in its favour, but this is academic as it cannot reclaim visa costs from a departing employee. If it insists, a case can be raised with the Ministry of Labour.

Keren Bobker is an independent financial adviser with Holborn Assets in Dubai. Contact her at keren@holbornassets.com

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