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UAE: Can Employees Reclaim Unused Allowance Funds?

UAE: Can Employees Reclaim Unused Allowance Funds?
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UAE law mandates reimbursement of the education allowance difference if invoices are lower than the fixed amount.

Question: I receive an education allowance for my children, and the company requires annual invoices for education expenses to process the allowance. However, the total amount spent on my children's education is less than the eligible allowance. In this situation, is it possible for the company to reimburse me the difference?

Answer: In the UAE, allowances provided to employees, including education allowances, should be detailed in the employment contract in accordance with Article 8 of the Federal Decree-Law No. 33 of 2021 and Article 10 (1) of the Cabinet Resolution No. 1 of 2022. These regulations require the employment contract to outline salary, benefits, and allowances, ensuring transparency and compliance.

Employers are also expected to have internal HR policies or an employee handbook detailing additional benefits, including rules for claiming allowances, as specified in Article 13(3) of the Employment Law. For organizations with more than 50 employees, the rules on promotions, rewards, and benefits must be clearly defined, as per Article 14 (4) of the Cabinet Resolution No. 1 of 2022.

If your employment contract specifies a fixed education allowance amount, and the invoices you submit show a lower expense, you are entitled to claim the difference. This is because the allowance stated in your contract should be honored, provided you have complied with the invoicing requirements.

News Source: Khaleej Times

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Shahba Mayyeri

Written by Shahba Mayyeri

Shahba is a Content Creator at HiDubai with 3 years of experience in crafting compelling stories and articles. She holds a Master’s degree in Media and Communications from MAHE Dubai.
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