UAE Law: After job ends, 30 days to vacate staff accommodation

Housing allowance is not part of the basic wage, must be agreed separately: Lawyer

The UAE Ministry of Human Resources and Emiratisation has informed employees living in accommodation provided by their employers to vacate it within 30 days after their service is finished.

“Labour Law states that an employee must evacuate his residence provided by his employer after ending his service within 30 days,” according to the Ministry.

An HR executive with a top UAE company, however, told Emirates 24|7 that employees can be given grace period in certain cases.

“One of our long-time employees is moving back to his home country and requested for an extension in company accommodation. We did give him a 15-day grace period to allow him to complete all his formalities. Though the Labour Law specifies the regulations, the extension to be given depends on the relationship between the employer and employee,” the executive added.

In April 2016, Emirates 24|7 reported that housing allowance are not part of the basic wage and must be agreed upon separately.

The UAE Labour Law does differentiate between the definitions of basic wage and total wage.

The former is an employee’s wage excluding all allowances of whatever nature and is specified in the labour contract as such, while total wage is an employee’s wage inclusive of all allowances provided such as accommodation and travel allowances.

“Hence, according to UAE Labour Law, allowances such as flights, housing, transportation and telephone are not part of the basic wage and must be agreed upon separately,” Ahmed Odeh, Legal Consultant, MIO Law Firm, had told this website.

Housing allowance can be distributed in one of the two following ways: Cash/Cheque in advance and employer undertaking to secure housing on behalf of the employee.

May 19, 2016

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