dominoman

Are companies allowed to reduce your housing allowance during the length of the contract?

UKCityGent

I would imagine its not allowable if its written in your contract - however if it refers to a HR policy then the company can move the goalposts.

Bahtatboy

Exactly at the Gent says. The devil's in the detail, which in this case is the precise wording of your employment contract. Clever (as in clever/bastard as opposed to clever/let's-treat-our-employees-with-some respect) HR depts will subtly link all allowances to company policies which may be changed from time to time, leaving employees at the total mercy of whatever way the wind's blowing in the boardroom each day. Big companies are generally bastards, through and through.

Meow

Under UAE Labour Law companies are not permitted to arbitrarily alter your contract terms without your agreement, If they do you can lodge a complaint but you wouldn't get a great deal and will probably find yourself unemployed a few months later.

Not also that Labour Law does not apply to government entities, albeit most follow it loosely.

Your best bet to to ensure that you only work for decent employers who don't make a habit of shafting their employees.

DXBtoDOH

Certain major multinationals have global expat policies and provide housing allowances based on need (single versus family) and the value of the housing allowance is tied to a certain area (Dubai gets higher allowances than, say, Kuala Lumpur). The allowances are usually fixed and non-negotiable as they have tax reasons for the structure. Average rents are appraised annually and the allowances revised based on the increase or fall in rents.

When the Dubai market crashed in 2009-2010 and rents dropped by half or more, many people's housing allowances did go down. The companies weren't going to keep paying out 350k housing allowances for a family villa if that same villa was now renting for 175k. For those companies the allowances aren't seen as extra salary on top of your base salary, but *allowances* to allow you to maintain a certain standard of living regardless of where you lived.

Smaller companies can be subject to economic market forces and cut back on benefits if there cash flow takes a big hit for whatever reasons. If a company scales back on your benefits there's usually a good reason for it so either accept it or find a new job.

Meow

I don't consider that unreasonable but a contract should be worded clearly to state that the allowance is variable and that it can be adjusted, either up or down, in according with prevailing rates.

If that isn't the case then a company needs to have a proper discussion with an employee to explain why they want/need to make changes.

I just see so many cases of employers acting unfairly and breaking the law that I am rather jaded.

The OneEyedMan

I used to receive my housing allowance as a lump sum once a year. The last 2 years my company was obliged to post it as "salary". So now I receive 12 lump sums, all posted at the same time. It shows on my bank statement as "Salary Credit". A curious practice.

The OneEyedMan

How many companies pay out 250k+ housing allowances to middle management and below? I don't know any, but there must be quite a few to populate all the luxury villas in Jumeirah, Barsha, Ranches, etc.

norsk

I reckon most people top up with their own money. At least that's the case with most of the people I know who live in those locations.

DXBtoDOH

Too many variations among companies and positions. Big American firms tend to be pretty generous.

The OneEyedMan

It's what I do. 30% from my coffers and I count myself lucky.

co durham boy

30% seems a bit steep but it's relative i suppose . I've not put a penny to housing in 20years.

mission

30% is quite steep from your own pocket.

Charl01

30% might be steep.....then again everything is relevant I guess. The one-eyed man might be on a 250K basic salary....

Meow

I know of plenty of people with housing allowances of AED 200k and some with more. Some choose to top up as they prefer to live in a certain area.

Housing allowance or salary - swings and roundabouts. It's all income at the end of the day.