Employment Contract in UAE

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Old Oct 23rd 2010, 10:28 am
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Default Employment Contract in UAE

My husband was offered a job and we have a few questions needed to clarify before signing up the contract.

1. Is the probation period negotiable between 3 and 6 months?
(Per law, it mentions up to 6 months)

2. Vacation can't be taken before probation period, per law. However, will he still earn his vacation (2 days/month) during the probation or the clock only starts after the probation?

3. His base salary is about 55% of his total package (other 45% is for allowances). We understand why his company does this because it doesn't want to pay too much money for end of service gratuity. What's is the reasonable percentage between base vs. allowances? Should we be happy with this or fight for it?

Your comments greatly appreciated. Thanks
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Old Oct 23rd 2010, 12:54 pm
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Default Re: Employment Contract in UAE

Originally Posted by xpatadventure
My husband was offered a job and we have a few questions needed to clarify before signing up the contract.

1. Is the probation period negotiable between 3 and 6 months?
(Per law, it mentions up to 6 months) This is entirely up to the employer

2. Vacation can't be taken before probation period, per law. However, will he still earn his vacation (2 days/month) during the probation or the clock only starts after the probation? By law, clock starts from outset

3. His base salary is about 55% of his total package (other 45% is for allowances). We understand why his company does this because it doesn't want to pay too much money for end of service gratuity. What's is the reasonable percentage between base vs. allowances? Should we be happy with this or fight for it? This varies massively between companies, but it's fairly standard that a percentage is allocated as allowances

Your comments greatly appreciated. Thanks
Responses in blue above. Good luck
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Old Oct 24th 2010, 11:10 am
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Default Re: Employment Contract in UAE

If employment is in Abu Dhabi, then 55/45 is a reasonable split (it might even be worse, given the cost of accommodation in AD). Dubai rents are much lower, so the split might be more favourable.

Should you fight? Only you can judge that; its the same as asking "what's the right price for a widget?" The answer is "exactly what you're willing to pay for it". You've got to work out, as best you can, how much the company wants you, and balance that against how much you want them. Who has the stronger bargaining position--you or them? Can they find equivalent (or sufficient) skills and experience elsewhere, easily and more cheaply? Can you easily and quickly find another opportunity which suits you as well and pays as much? If you overplay your hand, what's your fall-back position? Is the offer on the table their first one? Most negotiators keep something in hand, because most people once offered a job will try to get something more. And remember, it is generally easier to negotiate a significant increase when you start a job than when you already have framed photos of your family in your office.
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Old Oct 24th 2010, 4:28 pm
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Default Re: Employment Contract in UAE

Dear Bahtatboy,

Thanks for your suggestion. As I've read some blog on this site and realized that other people have even worse split than ours. We feel better knowing that it's reasonable.

Just a note, we did try to counteroffer but no luck!

Thanks
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