banter64

I think that this is the way forward in Dubai and I know that some companies have already implimented this, how would you feel if they wanted to cut your salary by 10% ? would you accept rather than loosing your job ? how would you prefer the company to handle it ?

Blue Cat

Yes I would rather take a 10% cut than lose 100% of my income. I would suggest getting everyone together into one room and then the VP makes an annoucement to such. Might be worth saying that if the business picks up everyone will receive a bonus for their loyalty. I sound like Richard Branson

banter64

LOL yes you do, thanks BC xx

Grace O Malley

Trust me there are lots of companies asking their employees to take pay cuts, I posted this a while back.....

Yes i would rather lose 10% as BC said

niddy

If you give an employee a pay cut of 10% or whatever, does a company need to do a new labour contract?

Grace O Malley

I don't think so... when there are yearly increases, you don't get new labour contract, can you imagine the disaster getting new labour contracts done!

banter64

According to the labour office you should make a labour contract amendment and this costs 200aed per person.

Grace O Malley

Never ever had a new labour contract when i have had a pay rise in this country, another law everyone ignores and can you blame then.

So if every year a company that has say for an example 150 employees and all get a pay rise you must pay to the labour office a shit load of money. What a load of tosh and robbery, no wonder companies do not issue new labour contracts, why should they pay 200 per person for a pc of paper that will take 2 months if ever to produce.

Blue Cat

bloody ridiculous! can you imagine Emaar giving 4000 a 100 dhs pay increase to go through this malarky!

Grace O Malley

Exactly BC, utter nonsense, I would really be interested to know exactly how many companies actually issue new contracts

niddy

OK, if you reduce an employee's salary to an amount that is less than that on a labour contract I don't see how you could get away with it unless you officially amend the labour contract? The employee could come back and say that he was coerced into the reduction etc.. I'm just curious if the ministry of labour would even let you do such a thing. Obviously with raises, that is another story because people get raises all the time but it isn't common for a company to reduce employee salaries on a constant basis.

Grace O Malley

How many people do you think win labour disputes here?

Not worth the hassle and time.

If your company has asked you to either take a pay reduction or be terminated with the legal notice period and all end of service benefits paid, the labour office don't give a damn.

Inselaffen

I'm supposed to get a 12pct pay rise in 2 months. written into my contract. in this climate would accept a 12pct pay cut if it meant keeping my job

Grace O Malley

Inse you are being realistic, which u have gotta be, a small pay cut is far better than no job.

Ethos83

Already took a 15% paycut, effective in February's paycheque.

Since I live well within my means, I'm not too upset. Better than than a job loss.

But I am beginning to look around for other positions just to keep my options open.