nessieindxb

For those seasoned DXB expats I have query on employment contract re housing and bills:

When I signed my contract I agreed to the following terms. I was told that the company would pay the rent, deposits, utility bills etc.

Accommodation Allowance of upto a maximum of $xx,xxx will be provided by the company
Utility bills will be paid by the company

Queries on the above:
1. Would this be defined as a housing allowance or company provided accommodation?
2. If its is a HA should any difference between the $xxk and the rent be repaid to myself?
3. My name is on the lease agreement alongside the company; according to labour law I am supposed to vacate staff provided housing within 30 days - would this still be applicable if my name is on the lease?
4. I read somewhere if the company provides accommodation then this should be include in the EOSB calculation, but not sure if true.

Due to the current economic climate they have since implemented the following changes on utilities:

1. Company no longer pays the phone/internet bill - have to pay 700AED out of pocket.
2. If DEWA is >xk AED I have to pay the difference via salary sacrifice?
3. If DEWA is <xk AED I do not receive the difference - is this right?

Regarding utilities I did not sign an agreement that they could do so, they just starting implementing this. Would this in effect be a reduction in total wages, and if so is the company technically breaking the law?

Thanks,

dominoman

My company did the same. They used to pay utilities. Then a few months ago we received a memo with a notice saying we would no longer have utilities paid. They instead gave us an increased allowance.

For people in apartments it was fine because the allowance covered the bills. For anyone in villas with their huge a/c bills they are deeply out of pocket.

I can't answer the legalities of doing it - but I suspect it happens a lot.

Gavtek

1. Could be either way, shouldn't make much difference what it is labelled, it is clear that you choose the accommodation and the company will pay the rent directly up to a certain limit.
2. The way it is worded means the company pays the rent direct so if you go for somewhere cheaper, you don't pocket the difference. If you go for somewhere more expensive, they'll probably deduct the difference from your salary.
3. No idea, never heard of that arrangement before. I guess the company don't want the liability for the remaining rent if you leave during the lease period. That being the case, you wouldn't need to vacate as long as you assume responsibility for the cost of the rent for the period you're not employed by the company.
4. It's on your basic salary. In my first job, I was in company provided accommodation with all bills paid, so my EOSB was paid on my total remuneration. If you have the accommodation allowance quantified in your contract, I suspect it'll be on your basic only.

Utilities part can be argued either way, but probably not in your favour unless you're prepared to walk away from the job over a couple of hundred dirhams a month.

nessieindxb

Thanks guys for your responses, much appreciated. Regarding point 3 above they have made folk redundant in the past and given them 30days to move out even though they were named on the lease. Was querying if my name is on the lease can they actually do that?

Quick clarification Gavtek; In my first job, I was in company provided accommodation with all bills paid, so my EOSB was paid on my total remuneration.

Did this meant your EOSB included the cost of bills/rent as part of the calculation?

Thanks,

Gavtek

No idea, that would depend on the court's interpretation of the labour law should you want to fight it that far.

No, the cost of rent/utilities was never mentioned in my contract, and in practice it varied over the years anyway.

nessieindxb

Thanks Gavtek - at the moment don't intend to leave company, just on a fact finding mission to ensure that I don't get shafted in the event things go pete tong

co durham boy

I get mine paid and the firm are slowly chipping it away but I've been in this game for 25 years so i know there's not many firms doing it so I'm keeping quiet as its a plus plus .

I would suggest you do the same