UAE oil worker wants to leave for better salary but questions return of allowances

Employee for a local-based oil company asks Keren Bobker whether there is any liability to the company.

An oil worker in the UAE is concerned about having to pay back allowances on leaving after 10 months. Photo by Chad Ehlers / Stock Connection / Rex Features
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Since October 2013, I have been working for a locally based oil company. They are a decent company but the salary they pay is lower than the one in other oil and gas companies, and has fewer benefits. I have an open-ended contract and have already completed the probation period. It states that in joining I receive some allowances such as an accommodation and furniture allowance. My concern is that if I resign, could I have any liability to the company as I have only been there for 10 months? Could I be asked to return the allowances? In my contract, there is no clause regarding the return of any allowance on resignation. ES, Abu Dhabi

Anyone on an unlimited contract is free to resign at any time but if employment has been for less than two years the employee could receive a ban, although this is often reduced to one year if the employee has a degree and a salary above a certain level. If the contract does not state that the allowances are to be repaid in the event of leaving employment within a specified period then the employer cannot request repayment. That said, the employer in this case is a government company and not subject to UAE Labour Law but should honour the contract terms nonetheless.

Keren Bobker is an independent financial adviser with Holborn Assets in Dubai, with over 20 year’s experience. Contact her at keren@holbornassets.com

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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