Dubai: Can employees file case against firm for unpaid extra fuel cost?
Employees in Dubai, especially those working for mainland companies, often face issues with their fuel allowance not covering actual expenses. The law specifies that if the contract includes fuel expenses for company-provided vehicles, the employer must cover these costs. Disputes can be resolved through the Ministry of Human Resources and Emiratisation or, if necessary, the UAE courts. Understanding these legal provisions is essential for employees.
In Dubai, a common concern among employees whose jobs entail significant travel is the discrepancy between the fuel allowance provided by their employer and the actual fuel expenses incurred. Particularly, for those employed by mainland companies in Dubai, understanding their legal standing in situations where the fuel allowance falls short is crucial.
The current legislation, primarily Federal Decree Law No. 33 of 2021 on the Regulation of Employment Relations, along with the Cabinet Resolution No. 1 of 2022, outlines the framework governing employment contracts and benefits, including allowances. According to Article 8 and Article 10 (1) of the said Cabinet Resolution, an employment contract should detail all aspects of the job, including salary, benefits, and allowances like fuel expenses when a car is provided for company business.
Therefore, if your employment contract explicitly states that the employer is responsible for fuel expenses for the company-provided vehicle used for work, they are obligated to cover these costs. If your employer consistently refuses to reimburse you for the actual fuel expenses that exceed your allowance, legal action can be considered.
Initiating this process involves lodging a complaint with the Ministry of Human Resources and Emiratisation (MoHRE). Here, the provisions of Article 54 of the Employment Law, read alongside Article 31 of the Cabinet Resolution No. 2022, come into play. MoHRE aims to facilitate a resolution, but if disagreements persist, the issue can be escalated to the UAE courts based on Article 22(1) of the Employment Law. This article stipulates that the amount or type of salary, including benefits and allowances, if not explicitly mentioned in the employment contract, will be decided upon by the court as part of a labor dispute.
This legal route offers a pathway for employees to seek resolution when their employment benefits, specifically fuel allowances in the context of required travel, are not met in accordance with their employment contracts. Understanding these provisions and knowing when and how to seek assistance from MoHRE is pivotal for employees facing such discrepancies.