Having a job that requires you to always be on the road can certainly be taxing as you need to pay for fuel and Salik tolls out of your own pocket. This is a reality most employees in Dubai face: Why isn’t the company sponsoring these expenses if they expect you to use your personal car for work? Let’s answer this question and look into what the law provides for these types of situations.
The Basics: UAE Employment Law and Company Expenses
If you are employed by a mainland company based in Dubai, that should invoke the provisions of UAE employment law in conjunction with relevant cabinet resolutions for dealing with your employer’s work-related expenses. In this scenario, an employer is likely required to cover some costs of performing your job, and this includes, to some extent, travel and transportation expenses incurred by the employee in the course of performing their duties.
What Does the Law Say?
There isn’t a specific legislation in UAE law that suggests paying salary does not come with the added responsibility of covering fuel or Salik fees for employees using their own cars for work. That said, it is common practice in most cases for employers to pay employees for essential expenses arising from the performance of their duties in any business that’s reasonably necessary. Here is where your working conditions matter.
Company Policy & Contractual Obligations:
It appears that your employment contract, along with the company’s policies, should detail the particulars about which expenses will be reimbursed. A number of companies do provide an allowance or reimbursement for fuel and tolls if their employees are required to use personal vehicles for business purposes. Check to confirm whether or not this is captured in your employment contract or any subsequent agreements.
Reimbursement for Business-Related Costs:
If your function entails regular travel such as client meetings or site visits, your employer may be required to reimburse you for other reasonable costs incurred as a result of such travel. Under normal circumstances this includes fuel, toll fees, and in some cases, vehicle servicing, depending on the company’s policy and the nature of your job.
Cabinet resolution on employee expenses:
Cabinet Resolution No. 1 of 2016 explains further that, in some cases, an employer may have to reimburse an employee for costs incurred in the undertaking of their work. Such costs could include travel costs incurred due to business activities, like toll fees and fuel charges, depending on the employee’s job responsibilities.
Should You Expect Compensation for Fuel and Salik?
Compensation for expenses such as fuel and Salik must be considered if a car is required for an employee’s job and the company does not provide a vehicle. In overheard phrases from employees, one can get to know employees use cars for a number of activities including driving to meetings, business trips, conferences etc, which to the company from outside might simply seem it is an exhausting routine, but it needs to focus on the numerous possibilities that can fetch it revenue via claiming the fuel driven by an employee.
A general rule for reimbursement is that employees should be entitled to reimbursement if they are required to drive a personal vehicle for work. Considerable number of companies still lack policies in place that adequately outline the processes and reimbursements pertaining to personal vehicles, which also leads to a lot of complex questions regarding who drives what and the purpose of the vehicle and being in the premises of the company.
Look through your employment contract: It is vital that you first check as frequently an oversight is made regarding policies company has or does not have relating fuel, traveling and other costs incurred due to work including policy covering reimbursing travel related expenses. You can always draft an email yourself to HR explaining the situation and claiming examining directions.
Additionally, most employees refute the possibility of traveling with a car with more than one employee of the company for some trips which avoids making this an option because of underestimating lack of tolls. Unfortunately, not many people would bother or keep track of receipts considering they can just pile up somewhere else. Keeping records for any form of reimbursement does need a considerable amount of work which is not always so rewarding. Maintain a detailed log alongside necessary receipts to get others to help you make your case when it’s time to reimburse you.
Assess your work rights: If there are no relevant policies, it is vital seek legal guidance on whether your particular scenario qualifies for reimbursement under the UAE Employment laws.
Final remarks: Be aware of exercising your rights and do not shy away from asking not discussing these issues.
It has been established that no specific law exists in the UAE enforcing the employer’s obligation to pay for fuel or Salik fees. Nevertheless, the other side of the coin is that many firms understand these expenditures as essentials of the job whenever an employee is required to travel frequently or is on the road. Hence, these situations offer bases of conversation between employees and employers where such reimbursement policies may be established. If these are not in your employment contract or company policy, approach HR or management and discuss it.
In essence, knowing your rights, rather legal stalker if needed, while making sure there is fairness with payment for expenses resulting from obligations in the scope of duties performed is crucial. Consult someone if steps need to be taken to ensure rights are not breached.
