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A package...with a salary cut?

A package...with a salary cut?

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Old Jan 9th 2015, 5:38 pm
  #1  
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Default A package...with a salary cut?

So it seems my employer would like me to relocate to Dubai, as I recently visited there to help them pitch a sale and it worked very, very well. And we are growing that office very quickly.

The issue however, is our absurd HR department - which insists that they are going to "localise" my salary to the equivalent local salary for my grade (something in senior management). After much to-ing and fro-ing, I finally managed to reach a deal with the VP that runs our office there to split the difference, so the "cut" is only half of what HR were demanding...still about 10% of my gross however.

OTOH, I am single, I rent here in the UK, in London (not cheap, about £2000 per month), and would give that up. I have a fully paid off Land Rover here, which at 7 years old I would lose a little on, but probably needs replacement soon enough anyway. And as I would be gone at least two years, it would of course be tax free and VAT free. They would of course cover shipments, and first years's rental loan, etc. But they are offering no housing allowances, nor for that matter flybacks (although I suspect work will have me going back and forth a bit anyway).

Is that horrendous, merely bad, just OK, or about what to expect in today's environment of more constrained packages?
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Old Jan 9th 2015, 11:50 pm
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Default Re: A package...with a salary cut?

If you are moving on an UAE contract, it could be a way to get rid of you with no compensation.
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Old Jan 9th 2015, 11:53 pm
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Default Re: A package...with a salary cut?

Originally Posted by NewCaledonia
If you are moving on an UAE contract, it could be a way to get rid of you with no compensation.
Good point...except they want me there to actually lead this project we are going to sell. And frankly, our company has pretty poor redundancy packages anyway - they will spend more to move me than the month's salary in my redundancy notice period.

But you have made me paranoid, and I now need to go reexamine the termination clauses...thank you for that, seriously.
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Old Jan 10th 2015, 4:05 am
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Default Re: A package...with a salary cut?

You won't become Income Tax free until you complete a full tax-year working overseas, but it can be backdated and there is also a split year concession. You need to watch your visits to the UK and the working days in the UK and other connecting factors. Search for 'UK statutory residence flowchart' for more info. If you want to be tax free, it is vital that you become and remain UK Non Resident. I also think you will be liable for full UK National Insurance for one year, since your Company operates an office in the UK.

Watch the T&Cs in your new local contract. Working conditions in the ME usually far less generous that the UK. Things like pension, accident/ sickness cover, working hours, annual/ statutory leave. Also ask about the end of term gratuity, which is mandatory in the UAE and can be about 3-4% of your salary.
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