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A reader from Dubai asks: In a recent salary review in our company, they reduced my accommodation allowance and transportation allowance by Dh1,000 and added it to my basic salary. Can they reduce the allowance which I enjoyed over last two years and as agreed since the signing of an employment contract?
I would like to advise the questioner that his total salary has not been reduced. His accommodation allowance of the sum of Dh1,000 has merely been moved to his basic salary, he should be thankful to his company for such action as the gratuity of the questioner is calculated on the basis of the last basic salary received by the employee, as per the Article No. 134 of the Labour Law.
- Answers by Advocate Mohammad Ebrahim Al Shaiba of Al Bahr Advocates and Legal Consultants.
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