Can Employees Challenge Transfers Between Emirates When Employers Refuse to Cover Higher Commuting Costs?

An employee who lives and works in Sharjah may face a significant increase in commuting expenses if an employer directs them to report to the company’s headquarters in Dubai. While the employer may maintain that the transfer does not alter the employee’s salary or other contractual benefits, the change in workplace can have financial implications that raise questions about the terms of employment and the extent of the employer’s authority to reassign staff.

 

Under UAE employment law, an employer’s ability to transfer an employee to another workplace depends, among other factors, on the employment contract and the nature of the proposed change. An increase in daily travel expenses does not automatically give an employee the right to refuse a transfer. Equally, an employer’s decision to retain the existing salary and benefits does not, by itself, settle every question concerning the legality of the reassignment.

 

The principal legislation governing most private-sector employment relationships is Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, as amended, together with its implementing regulations, including Cabinet Resolution No. 1 of 2022. The applicable provisions must be considered in the context of the employee’s contractual obligations, the proposed workplace and the practical consequences of the transfer.

 

Employment Contracts And The Designated Workplace

 

Article 10(1) of Cabinet Resolution No. 1 of 2022 specifies the information that an employment contract must contain. These particulars include the employer’s name and address, the employee’s personal and identification details, qualifications, job or occupation, commencement date, workplace, working hours, rest days, probationary period where applicable, contract duration, agreed wages and benefits, annual leave entitlements, notice period and procedures for terminating the contract.

 

The express inclusion of the workplace among the prescribed contractual particulars is important when considering a proposed transfer. The location identified in an employment contract can help establish the agreed conditions under which the employee was engaged and whether the employer has a contractual basis for requiring the employee to work elsewhere.

 

If a contract specifies a particular workplace in Sharjah without providing for reassignment to other locations, a subsequent instruction to work in Dubai may require closer examination. The position may be different where the contract expressly permits the employer to transfer the employee between branches, offices or emirates, subject to the applicable law and the terms of that provision.

 

An employee should therefore review the employment contract before deciding whether to challenge a transfer. The relevant considerations include the wording of the workplace clause, any provision allowing the employer to change the place of work, the nature of the employee’s duties and whether the proposed reassignment would alter the essential terms of the employment relationship.

 

When Must The Employer Bear Additional Costs?

 

Article 12(3) of Federal Decree-Law No. 33 of 2021 addresses situations in which an employee is required to perform work that was not agreed upon in the employment contract and doing so necessitates a change of residence. In such circumstances, the employer must bear the resulting financial costs, including expenses associated with the employee’s relocation and residence.

 

However, this provision does not automatically require an employer to reimburse higher daily commuting costs whenever an employee is transferred to another emirate. Its application depends on the circumstances specified in the law, particularly whether the employee is being required to undertake work outside the agreed contractual terms and whether that work necessitates a change of residence.

 

Where the employee continues to perform the same duties and can commute from the existing home, the increase in travel expenses alone may not be sufficient to establish a legal entitlement to reimbursement under this provision. The employee may nevertheless seek clarification from the employer and negotiate transport assistance or an appropriate allowance, particularly if the change imposes a substantial additional financial burden.

 

Resolving A Dispute Over Workplace Transfers

 

Employees who believe a transfer violates their contractual rights should first examine the relevant provisions of their employment agreement and seek written clarification from the employer. If the contract does not clearly authorise the proposed reassignment, or if the transfer would materially change the agreed employment arrangements, the employee may have grounds to question the instruction.

 

Where the dispute cannot be resolved directly, an employee may lodge a complaint with the Ministry of Human Resources and Emiratisation (MoHRE), provided the employment relationship falls within its jurisdiction. The Ministry may seek an amicable settlement and, where necessary, refer the dispute to the competent court in accordance with the applicable procedures.

 

Ultimately, employees do not automatically have the right to reject every transfer between emirates merely because commuting expenses will increase. Whether a particular transfer can be challenged depends on the employment contract, the nature of the proposed change and the relevant statutory provisions. Employers and employees should assess these factors before treating a transfer as either an unrestricted management decision or a change that necessarily requires additional compensation.