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Addressing Fuel Allowance Discrepancies in Employment Contracts in Dubai

Many employees in Dubai travel regularly for business and rely on company-provided vehicles and fuel allowances.

In Dubai, many employees frequently travel for work and rely on company-provided vehicles and fuel allowances. However, discrepancies in fuel coverage can become a point of contention between employers and employees. 

If you find yourself paying more for fuel than the allotted allowance, it’s crucial to understand your legal recourse under UAE employment law.

Navigating Employment Regulations in Dubai:

As a mainland Dubai company employee, your employment falls under Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relations and Cabinet Resolution No. 1 of 2022. 

These regulations govern the terms and conditions of your employment, including allowances such as fuel coverage.

The Importance of Employment Contracts:

According to Article 8 of the Employment Law and Article 10(1) of Cabinet Resolution No. 1 of 2022, employment contracts should explicitly outline various details, including salary, benefits, and allowances. 

If your contract specifies that the employer covers fuel expenses for the company-provided car used for business purposes, your employer must fulfill this commitment.

Taking Legal Steps: Filing a Complaint with MoHRE:

If your company consistently fails to meet its obligations regarding fuel allowances, you have legal recourse. 

Under Article 54 of the Employment Law and Article 31 of Cabinet Resolution No. 1 of 2022, you can file a complaint with the Ministry of Human Resources and Emirtisation (MoHRE). 

The MoHRE will attempt to mediate and resolve the dispute between you and your employer.

Court Intervention in Disputes:

Should mediation efforts prove unsuccessful, the MoHRE may refer your case to a relevant UAE court, per Article 22(1) of the Employment Law. 

The court will then decide on the matter, ensuring that the terms of your employment contract, including fuel allowances, are justly enforced.

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