Abu Dhabi teacher told 45 days pay to be withheld

I am on a fixed-term contract that began in August 2013 and finishes at the end of this academic school year. I handed in my letter of intention not to sign a new contract that was offered a few weeks ago. The owner now says she will withhold 45 days pay even though I am not leaving early. Can she do this? Do I still get a gratuity payment and all that is due? I also understand that I can live in the accommodation provided for 30 days without charge. WS, Abu Dhabi

If someone is on a fixed-term contract and works the full period then they do not have to pay any kind of penalty or compensation to the employer if they leave service at the end date shown in the contract. The usual end of service payments are due. These include the appropriate gratuity payment plus the air fare to the employee’s home country if they are leaving the UAE. In respect of the accommodation provided with the job, Article 131 of UAE Labour Law states: “in the cases where the employer provides the employee with accommodation, the employee shall be obliged to vacate the accommodation within a period not to exceed 30 days from the date of his service termination.” WS can therefore remain in the accommodation provided as part of her employment for up to 30 days after service ends.

Keren Bobker is an independent financial adviser with Holborn Assets in Dubai, with more than 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